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Carnarvon Petroleum targets more oil flow with new Thailand wells

Published: 19:19 09 Jun 2014 EDT

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Carnarvon Petroleum (ASX:CVN) is setting the stage for additional oil production from its 20% owned Thailand assets with the next drilling program expected to begin in July 2014.

Between five to seven wells will be drilled with half of the planned wells to be located on new 3D seismic data in the L33/43 Concession and the balance in the adjoining L44/43 Concession.

Operator Towngas (60%) has also successfully achieved its objective of maintaining production at about 4,000 barrels of oil per day by choking back high flowing wells to preserve their longevity.

Technical work is continuing on L44/43 with a view to further increase production levels in the future. 

This work includes planning for the acquisition of new 3D seismic data expected to be acquired in late 2014 in L44/43.

“We are encouraged by the progress being made in Thailand around both sustaining production levels and advancing technical work for future improvements,” managing director Adrian Cook said.

“Whilst we need to be mindful that more time is needed before we can conclude that restrained flow rates are successful in managing and controlling production from these igneous (volcanic) reservoirs, it has been encouraging so far.

“At current production levels the asset generates material cash flows for the company, both from the company’s 20% interest in the field and in due course from the US$32 million receivable from Loyz Energy who acquired half of Carnarvon’s interest as announced on 1 May 2014. 

“With this activity in Thailand, together with a strong balance sheet containing over $50 million in cash and a high impact well being drilled in the North West Shelf, we are in an exciting phase of the business.

“In addition to this near term activity, we recently announced acquiring over 3,000 square kilometres of new North West Shelf acreage that provides the next platform of growth opportunities for the future.”

 

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on 09/22/2015