Carnarvon Petroleum Limited (ASX: CVN), an oil and gas producer and explorer, provided an update on the drilling commenced by the company at Dorado-2 well after mobilising the rig at the location, which is approx. 2.2km from the original Dorado-1 well location. AS per the company, it completed the drilling of a surface hole and installed the surface casing.
Carnarvon mentioned that both the wells are in Dorado oil and gas field, and Dorado-2 well is in the Bedout Sub-basin, approx. 160km north-northeast of the Port Hedland in Pilbara Region. The company previously identified hydrocarbon reservoirs such as the Caley, Baxter, Crespin, and Milne members of Lower Keraudren Formation through Dorado-1.
Carnarvon mentioned that the Dorado-2 is an appraisal well for Dorado-1 well, which was discovered in the latter half of the year 2018 and following the development of the well, the company intend to drill a near-field exploration well-Roc South-1. Both Dorado and Roc South comes under the tenement- WA-437-P, in which the company holds a 20% interest.
As mentioned above, the Dorado-2 is an appraisal well, and the objective of the well is to appraise the oil and gas identified by the company in the Dorado-1 well. As per the company, the hydrocarbon intersected by Dorado-1 well at Caley, Baxter and Milne is estimated to extend beyond the previous intersection achieved by the Dorado-1 well.
The aim of the appraisal well is to target those extended hydrocarbons reservoirs and increase the certainty regarding the extended hydrocarbons estimation and help to identify the characteristics of the key reservoirs further.
The company previously intersected net 130 metres of hydrocarbons through Dorado-1 well, out of which 80m belonged to Caley reservoir, the substantial resource of hydrocarbons at Caley makes it the main target for appraisal. The Dorado-2 appraisal well was drilled to extend the oil column at Caley, either by encountering a hydrocarbon-water contact or in the high case increasing the oil down to. As per the company, the Dorado-2 is estimated to identify similar high-quality reservoir, and the company planned a well-bore to extract over the Caley Reservoir.
Carnarvon encountered a charged Baxter sandstone near the base of the 8 1/2” hole section in the Dorado-1, and as per the company the identified sandstone is estimated to be entirely gas-condensate saturated, which signifies that the Dorado-1 well did not encounter hydrocarbon-water contact. However, the analysis of Dorado-1 suggests that an oil leg could be present below the estimated gas column.
As per the company, Dorado-1 indicated a preliminary hydrocarbon-water contact and the company plans to collect information regarding the reservoir for future use.
The Dorado-1 discovered an 18-metre net hydrocarbon charged reservoir; however, the analysis of the collected data suggests that the well encountered no hydrocarbon-water contact.
Carnarvon mentioned that the intermediate casings to the point just above the Caley would require approx. a month, and post that the company will cut and extract over the Caley and Baxter reservoir through an approx. 200m full well-bore. The company will commence a wireline operation after drilling the well to a final depth of 4,550 metres.
The shares of the company were trading at A$0.435 (as on 3rd May 2019), down by 3.333% as compared to its previous close.
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