Proactiveinvestors USA & Canada Carnarvon Petroleum Ltd https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Carnarvon Petroleum Ltd RSS feed en Sun, 21 Jul 2019 05:41:35 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Carnarvon Petroleum Ltd's Adrian Cook 'extremely pleased' with Roc-2 results ]]> https://www.proactiveinvestors.com/companies/news/165427/carnarvon-petroleum-ltds-adrian-cook-extremely-pleased-with-roc-2-results-70940.html Carnarvon Petroleum Ltd (ASX:CVN) has updated on drilling operations as advised by the operator of the Roc-2 well, Quadrant Energy.

Carnarvon holds a 20% interest, with Quadrant 80% (operator).

The Roc-2 well has been designed to appraise and test the Roc-1 gas-condensate discovery revealed earlier in the year, and is located within the WA-437-P exploration permit in the North West Shelf.

The North West Shelf is Australia’s most prolific oil and gas region.

Adrian Cook, managing director for Carnarvon, commented: "I am extremely pleased with the results of this well so far.

"We have successfully acquired core over the reservoir section and I’m happy to be in a position to confirm today that we’ve encountered hydrocarbons in good quality reservoir sands.

"The next stage of the program is to obtain and assess the logging and testing results which will take place after the current well deepening activity.

"Clearly there is some ways yet to go on this well but progress to date is very encouraging."


Results

The Roc-2 well has confirmed hydrocarbon bearing reservoir, in good quality rock, within the Caley section.

The results were confirmed during Logging While Drilling (LWD) which provides preliminary information during drilling operations.

The next stage of data acquisition will become available after wireline logging, which is planned to include pressure and fluid sampling tools.


Progress

Following the completion of the coring process the well has continued drilling the 8 ½” (216 mm) hole, including passing through the cored Caley sections with LWD tools for the first time.


Current Operations

The well is currently drilling ahead in the 8 ½” (216 mm) hole section at a depth of around 4,610 metres.


Forward Plan

The rig will continue to drill the 8 ½” (216 mm) hole to planned total depth of around 5,250 metres. Following the completion of drilling, anticipated to take around 2 weeks, an extensive logging and testing campaign will commence.


Funding

Carnarvon remains well-funded with A$87.7 million held in cash at the end of June 2016, plus future receivable up to US$31.3 million and A$8 million well carry.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 09 Sep 2016 09:30:00 -0400 https://www.proactiveinvestors.com/companies/news/165427/carnarvon-petroleum-ltds-adrian-cook-extremely-pleased-with-roc-2-results-70940.html
<![CDATA[News - Carnarvon Petroleum Ltd and Quadrant Energy update on Roc-2 drilling ]]> https://www.proactiveinvestors.com/companies/news/165426/carnarvon-petroleum-ltd-and-quadrant-energy-update-on-roc-2-drilling-70879.html Carnarvon Petroleum Ltd (ASX:CVN) has updated on drilling operations as advised by the operator of the Roc-2 well, Quadrant Energy.

Carnarvon holds a 20% interest, with Quadrant 80% (operator).

Since the last report 120 metres of core has successfully been taken from around 4,290 metres to 4,410 metres as planned.

The well is in the process extracting the coring assembly at a controlled rate for maximum core preservation.

Carnarvon expects to be in a position to report on whether the target Caley formations are hydrocarbon bearing, and the extent of any reservoir sands intersected, after completion of a drilling wiper trip with logging-while-drilling tools across the cored section before the rig continues to drill ahead.


Forward plan

Following the extraction of the core from the well bore, the rig will prepare the 8 ½” (216 mm) drilling assembly and continue to drill to planned total depth of around 5,250 metres.

The 8 ½” drilling assembly includes logging-while-drilling tools.


Roc-2 well

The Roc-2 well has been designed to appraise and test the Roc-1 gas-condensate discovery revealed earlier in the year, and is located within the WA-437-P exploration permit in the North West Shelf.

The North West Shelf is Australia’s most prolific oil and gas region.

The well is required to delineate the extent of the Roc field, calibrate reservoir parameters, understand reservoir deliverability and characterise fluid properties.


Funding

Carnarvon remains well-funded with A$87.7 million held in cash at the end of June 2016, plus future receivables up to US$31.3 million and A$8 million well carry.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 06 Sep 2016 14:30:00 -0400 https://www.proactiveinvestors.com/companies/news/165426/carnarvon-petroleum-ltd-and-quadrant-energy-update-on-roc-2-drilling-70879.html
<![CDATA[News - Carnarvon Petroleum Ltd and Quadrant Energy update on Roc-2 drilling ]]> https://www.proactiveinvestors.com/companies/news/165425/carnarvon-petroleum-ltd-and-quadrant-energy-update-on-roc-2-drilling-70669.html Carnarvon Petroleum Ltd (ASX:CVN) has updated on drilling operations as advised by the operator of the Roc-2 well, Quadrant Energy.

Carnarvon holds a 20% interest, with Quadrant 80% (operator).

Since the last report the 12 ¼” (311 mm) hole has been drilled to 4,057 metres measured depth, just within the Hove.

The well is in the process of setting the 9 ⅝” (245 mm) casing liner.

Carnarvon noted that well results to date are similar in nature to those observed when drilling the same formations in the Roc-1 well.

The company added that due to the nature of coring operations, no information will be available to the joint venture during the coring process.

Carnarvon said that it expects to be in a position to report on whether the target formations are hydrocarbon-bearing, and the extent of any reservoir sands intersected, after completion of a drilling wiper trip with Logging While Drilling tools at the completion of the coring process.


Forward Plan

Following the setting and cementing of the 9 ⅝” (245 mm) liner, a further 200 metres of 8 ½” (216mm) hole will be drilled through the Hove to just above the primary Caley target.

It is planned to acquire around 120 metres of whole bore core across the Caley member before continuing drilling to planned total depth of around 5,250 metres.


Roc-2 well

The Roc-2 well has been designed to appraise and test the Roc-1 gas-condensate discovery revealed earlier in the year, and is located within the WA-437-P exploration permit in the North West Shelf.

The North West Shelf is Australia’s most prolific oil and gas region.

The well is required to delineate the extent of the Roc field, calibrate reservoir parameters, understand reservoir deliverability and characterise fluid properties.


Funding

Carnarvon remains well-funded with A$87.7 million held in cash at the end of June 2016, plus future receivable up to US$31.3 million and A$8 million well carry.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 25 Aug 2016 12:00:00 -0400 https://www.proactiveinvestors.com/companies/news/165425/carnarvon-petroleum-ltd-and-quadrant-energy-update-on-roc-2-drilling-70669.html
<![CDATA[News - Carnarvon Petroleum Ltd and partner progress well on North West Shelf ]]> https://www.proactiveinvestors.com/companies/news/165424/carnarvon-petroleum-ltd-and-partner-progress-well-on-north-west-shelf-70465.html Carnarvon Petroleum Ltd (ASX:CVN) and partner Quadrant Energy have provided an update on drilling operations of the Roc-2 well, located on Australia’s North West Shelf.

The North West Shelf is Australia’s most prolific oil and gas region.

Carnarvon holds a 20% interest, with Quadrant 80% (operator).

Since the last report the 17 ½” (445 mm) hole has been drilled to 3,433 metres measured depth, just below the Cossigny marker, and the well is in the process of setting the 13 ⅝” (346 mm) intermediate casing.


Forward Plan

Following the cementing of the 13 ⅝” casing, a further 850 metres of intermediate 12 ¼” (311 mm) hole will be drilled down to just above the primary Caley target, and a 9 ⅝” (245 mm) drilling liner will be placed across this open hole to enable the well to drill to its deeper targets.


Roc-2 well

The Roc-2 well has been designed to appraise and test the Roc-1 gas-condensate discovery revealed earlier in the year.

The well is required to delineate the extent of the Roc field, calibrate reservoir parameters, understand reservoir deliverability and characterise fluid properties.


Drilling information

Carnarvon said that at around 3,250 metres measured depth, a 10 metre section of elevated gas readings and moderate fluorescence was observed across a sandstone interbed within the Upper Keraudren, consistent with residual hydrocarbons.

Slightly deeper in the well, from around 3,360 metres measured depth, elevated gas readings and minor fluorescence were observed in the Cossigny limestone.

This hydrocarbon fluorescence has regional interest because it is the first case of hydrocarbons migrating above and within the Cossigny, and increases the exploration potential of the area.

The Huxley and Barret formations are expected to be encountered in the 12 ¼” hole section.

The Barret sands were oil charged at Phoenix South-1 well and water wet at Roc-1 well.

In the Roc-1 well, hydrocarbon shows were observed in the Huxley sands and further data on this potential reservoir section will expand the exploration portfolio outside this well, particularly for prospects outside this area such as Bandy.

The primary target for the Roc-2 well is the Caley sands which were gas and condensate charged in Roc-1.

Carnarvon added that this zone is expected to be cored late August or early September 2016.

Due to the nature of these operations, no information will be available to the joint venture during the coring process, which is anticipated to take 5-10 days.


Funding

Carnarvon remains well-funded with A$87.7 million held in cash plus future receivable up to US$31.3 million and A$8 million well carry.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 16 Aug 2016 09:40:00 -0400 https://www.proactiveinvestors.com/companies/news/165424/carnarvon-petroleum-ltd-and-partner-progress-well-on-north-west-shelf-70465.html
<![CDATA[News - Carnarvon Petroleum Ltd and partner update on Roc-2 well ]]> https://www.proactiveinvestors.com/companies/news/151605/carnarvon-petroleum-ltd-and-partner-update-on-roc-2-well-70208.html Carnarvon Petroleum Ltd (ASX:CVN) has provided an update on drilling operations as advised by the operator of the Roc-2 well, Quadrant Energy.

Carnarvon holds a 20% interest, with Quadrant 80%.

The well is located on Australia’s North West Shelf, and has been designed to appraise and test the Roc-1 gas-condensate discovery revealed earlier in the year.

The Roc-2 appraisal well is required to delineate the extent of the Roc field, calibrate reservoir parameters, understand reservoir deliverability and characterise fluid properties.

The North West Shelf is Australia’s most prolific oil and gas region.


Progress

Since the last report the 17 ½” (445 mm) hole has been drilled to around 2,230 metres measured depth.

A mechanical issue with the rig’s drilling system occurred since the last report. The issue has been rectified and the operator minimized costs during this period.

As a result, the well is around 10 days behind schedule.


Current Operations

The well is continuing to drill in the 17 ½” (445 mm) hole section.


Forward Plan

The rig is expected to take around 1 week to drill the 17 ½” (445 mm) hole down to a depth of around 3,500 metres measured depth before running the 13 5/8” (346 mm) intermediate casing.

No reservoir objectives are anticipated to be intersected in this hole section.

The well will then be deepened in 8 ½” (216 mm) hole to just above the reservoir target.

The primary target for the Roc-2 well, the Caley sands which were gas and condensate charged at Roc-1, is expected to be cored with coring activities expected to commence late August or early September 2016.

Due to the nature of these operations, no information will be available to the joint venture during the coring process, which is anticipated to take 5-10 days.

The company said that it expects to be in a position to report on whether the target formations are hydrocarbon-bearing, and the extent of any reservoir sands intersected, after completion of a drilling wiper trip with Logging While Drilling (LWD) tools at the completion of the coring process.

The well will then be deepened to explore for the secondary targets to a total depth of up to 5,250 metres.


Analysis

Carnarvon remains well-funded with A$87.7 million held in cash plus future receivable up to US$31.3 million and A$8 million well carry.

If Roc-2 encounters the 2C and mid / best case estimates of gas and condensate, it is likely that the Roc resource will be commercial and well advanced in terms of being re-categorised as reserves.

At the base of the Roc-1 well, promising hydrocarbon shows were encountered in an additional sandstone section, named the Milne sandstone.

The Roc-2 well is being planned to test the extent of these deeper hydrocarbons encountered at the TD of Roc-1.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 03 Aug 2016 08:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151605/carnarvon-petroleum-ltd-and-partner-update-on-roc-2-well-70208.html
<![CDATA[News - Carnarvon Petroleum Ltd and Quadrant Energy update on Roc-2 well ]]> https://www.proactiveinvestors.com/companies/news/151604/carnarvon-petroleum-ltd-and-quadrant-energy-update-on-roc-2-well-69893.html Carnarvon Petroleum Ltd (ASX:CVN) has received an update on drilling operations by the operator of the Roc-2 well on Australia’s North West Shelf, Quadrant Energy.

Carnarvon holds a 20% interest, with Quadrant 80%.

The well has been designed to appraise and test the Roc-1 gas-condensate discovery revealed earlier in the year.

The Roc-2 appraisal well is required to delineate the extent of the Roc field, calibrate reservoir parameters, understand reservoir deliverability and characterise fluid properties.

Roc-2 will be drilled to a depth of 5,250 metres with capacity to extend to 5,700 metres if justified by hydrocarbon shows, reservoir quality and drilling conditions.


Progress

Since the last report the 26” (660 mm) hole has been drilled to around 1,275 metres measured depth and the 20” (510 mm) casing has been set and cemented in place.


Current Operations

The well has commenced drilling in the 17 ½” (445 mm).


Forward Plan

The rig is expected to take between 1 to 2 weeks to drill the 17 ½” (445 mm) hole down to a depth of around 3,500 metres measured depth before running the 13 5/8” (346 mm) intermediate casing.

No reservoir objectives are anticipated to be intersected in this hole section.


Roc-2 location and volumes

The Roc-2 well is located in 100 metres of water, around 160 kilometres north-east of Port Hedland in the Bedout sub-basin of the greater Roebuck basin.

Roc-1 encountered a gross reservoir section of around 120 metres in the Caley, with the top 40 meters being hydrocarbon bearing.

The Roc-2 well is designed to appraise this reservoir section in an updip location, around 5 kilometres to the east of the Roc-1 well.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 19 Jul 2016 09:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151604/carnarvon-petroleum-ltd-and-quadrant-energy-update-on-roc-2-well-69893.html
<![CDATA[News - Carnarvon Petroleum Ltd: Quadrant Energy commences drilling of Roc-2 ]]> https://www.proactiveinvestors.com/companies/news/151603/carnarvon-petroleum-ltd-quadrant-energy-commences-drilling-of-roc-2-69718.html Carnarvon Petroleum Ltd (ASX:CVN) has reported that the operator of the Roc-2 well, Quadrant Energy, has advised that the well commenced drilling on 9 July 2016.

The Roc-2 well will be drilled in around 100 metre water depth, located 160 kilometres north-east of Port Hedland in the Bedout sub-basin of the greater Roebuck basin.

The Roc prospective and contingent resources are within the WA-437-P exploration permit in the North West Shelf of Australia.

Quadrant (80%) is the operator, with Carnarvon holding a 20% interest.


Drilling aims

The main aims of the Roc-2 well are to appraise the Roc gas-condensate discovery in the Caley section that Carnarvon announced earlier in the year, and to progress towards proving a volume above the minimum economic field size and to establish potential flow rates for future development planning.

Secondary objectives for the well are to explore the hydrocarbon potential of the deeper Milne member, where encouraging hydrocarbon shows were observed during the final phase of drilling the Roc-1 well, and the shallower Huxley member, where oil shows were encountered at Roc-1.


Timeline

The well will take around 60 days to drill down to a total depth of around 5,250 metres, including the cutting of 120 metres of core, before the evaluation program is undertaken.

The evaluation, including wireline logging and flow testing, is expected to extend over a further 40 days.


Analysis

Carnarvon holds a market value of circa $100 million with $96 million cash, future cash flow up to $44 million and a well carry of $8 million.

Board and management, made up of North West Shelf experts, own 7% of the company.

Carnarvon has two material drilling outcomes within the next 6 months.

- Outtrim East-1 exploration well where the target is to prove an oil aggregation play; and

- The Roc-2 appraisal well which aims to confirm that Carnarvon will take part of a material domestic gas project.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 11 Jul 2016 13:30:00 -0400 https://www.proactiveinvestors.com/companies/news/151603/carnarvon-petroleum-ltd-quadrant-energy-commences-drilling-of-roc-2-69718.html
<![CDATA[News - Carnarvon Petroleum Ltd's partner outlines Outtrim East-1 oil discovery ]]> https://www.proactiveinvestors.com/companies/news/151602/carnarvon-petroleum-ltds-partner-outlines-outtrim-east-1-oil-discovery-69730.html Carnarvon Petroleum Ltd (ASX:CVN) partner Quadrant Energy has updated on drilling operations at the Outtrim East-1 well, located within the WA-155-P(1) exploration permit in the North West Shelf of Australia.

The North West Shelf is Australia’s most prolific oil and gas region.

Quadrant is the operator with 71.5%, and Carnarvon 28.5%.


Progress

Since the last report the well has completed the coring operation, drilled down to final depth of 1,441 metres, and completed a revised wireline logging program.


Forward Plan

This completes the Outtrim East-1 well drilling operations and the rig will leave the location shortly.


Rig site evaluation

As planned, a total of 91 metres of core was cut with close to 100% of the core being recovered to surface.

The core is now being transported to shore for evaluation at laboratories in Perth.

The core evaluation is critical to determine the extent and quality of the net reservoir and estimate the in place and recoverable volumes in the Outtrim and Outtrim East structures.

The joint venture partners decided not to complete the full suite of logging activities, believing sufficient information has now been acquired to assess the well results to the extent planned.


Analysis

Carnarvon holds a market value of circa $100 million with $96 million cash, future cash flow up to $44 million and a well carry of $8 million.

Board and management, made up of North West Shelf experts, own 7% of the company.

Carnarvon has two material drilling outcomes within the next 6 months.

The first is the Outtrim East-1 exploration well where the target is to prove an oil aggregation play.

The second is at the Roc-2 appraisal well which aims to confirm that Carnarvon will take part of a material domestic gas project.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 11 Jul 2016 12:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151602/carnarvon-petroleum-ltds-partner-outlines-outtrim-east-1-oil-discovery-69730.html
<![CDATA[News - Carnarvon Petroleum Ltd: Quadrant Energy updates on Outtrim East-1 well ]]> https://www.proactiveinvestors.com/companies/news/151601/carnarvon-petroleum-ltd-quadrant-energy-updates-on-outtrim-east-1-well-69698.html Carnarvon Petroleum Ltd (ASX:CVN) is partnering with Quadrant Energy on the Outtrim East-1 well, which is located within the WA-155-P(1) exploration permit in the North West Shelf of Australia.

The North West Shelf is Australia’s most prolific oil and gas region.

Quadrant is (Operator) holds 71.5%, with Carnarvon 28.5%.


Progress

Since the last report the 9-5/8” casing liner has been cemented in place and the well has drilled down to the top of the expected coring point of about 1,250m where coring operations have commenced.


Current Operations

The well is in the final stage of obtaining 90 metres of core across the Pyrenees and Murion members that will be used for a full evaluation of the reservoir properties.

The core will be transferred off the rig to laboratories for analysis.


Forward Plan

Drilling will recommence and the final section of the hole will be drilled to a total depth of around 1,440 metres.

Following this brief final drilling operation, a wireline logging program will commence.

The program is expected to include the use of the Saturn Probe for formation pressure testing and fluid sampling.


Analysis

Carnarvon holds a market value of circa $100 million with $96 million cash, future cash flow up to $44 million and a well carry of $8 million.

Board and management, made up of North West Shelf experts, own 7% of the company.

Carnarvon has two material drilling outcomes within the next 6 months.

The first is the Outtrim East-1 exploration well where the target is to prove an oil aggregation play.

The second is at the Roc-2 appraisal well which aims to confirm that Carnarvon will take part of a material domestic gas project.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 08 Jul 2016 10:20:00 -0400 https://www.proactiveinvestors.com/companies/news/151601/carnarvon-petroleum-ltd-quadrant-energy-updates-on-outtrim-east-1-well-69698.html
<![CDATA[News - Carnarvon Petroleum Ltd to build stratigraphic database of North West Shelf ]]> https://www.proactiveinvestors.com/companies/news/151600/carnarvon-petroleum-ltd-to-build-stratigraphic-database-of-north-west-shelf-69591.html Carnarvon Petroleum Ltd (ASX:CVN) has appointed MGPalaeo to build a comprehensive stratigraphic database for the North West Shelf (NWS) over the next twelve months.

The database will cover the interpretation of the results of 3,000 wells drilled on the NWS.

When overlaid with Carnarvon’s existing database it will provide powerful insights into the regional geology and prospectivity of the area.

Adrian Cook, managing director for Carnarvon, commented:

“The business of Carnarvon is built around innovative geoscience, creating new exploration concepts in our current and prospective acreage, and an endeavour to deliver significant shareholder value, through major hydrocarbon discoveries.

"Core to innovation is a top quality geoscience database.

"The Carnarvon management team has invested in building a ‘state of the art’ database covering the NWS, giving the Carnarvon geoscience team the very best tools to explore for new hydrocarbon accumulations.

"Our investment in our geoscience also includes building a high quality and consistent wireline log dataset; building a class-leading Triassic geochemical database, purchasing a satellite seep database of the NWS, purchasing a comprehensive seismic and velocity dataset in our core NWS areas and acquiring significant new seismic data in potentially the next major NWS oil and gas province in the Roc/Phoenix areas."


MGPalaeo

MGPalaeo will equip Carnarvon geoscientists with the most up to date interpretation of stratigraphical data that exists, covering modern re-evaluations of the first wells drilled in Australia to the most recently available data.

The immediate effect will be to provide the inspiration for new exploration theories and concepts, not previously envisaged.


Analysis

This new stratigraphic database will provide Carnarvon with the geoscience firepower to lead in hydrocarbon exploration on the NWS.

Broker Hartleys recently placed a Speculative Buy and a $0.16 12-month price target on Carnarvon.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 04 Jul 2016 09:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151600/carnarvon-petroleum-ltd-to-build-stratigraphic-database-of-north-west-shelf-69591.html
<![CDATA[News - Carnarvon Petroleum Ltd updates on progress at Outtrim East-1 ]]> https://www.proactiveinvestors.com/companies/news/151599/carnarvon-petroleum-ltd-updates-on-progress-at-outtrim-east-1-69578.html Carnarvon Petroleum Ltd (ASX:CVN) has provided an update on drilling operations as advised by the operator of the Outtrim East-1 well, Quadrant Energy.

The Outtrim East-1 well is located within the WA-155-P(1) exploration permit in the North West Shelf of Australia.

Quadrant (71.5%) is the operator, with Carnarvon 28.5%. The expected cost to Carnarvon for the well is expected to be $10.5 million.


Progress

The well has reached the 12-1/4” hole section TD at a depth of 1,011 metres.

Carnarvon notes that the first casing string was set shallower than expected due to drilling challenges in the shallow-hole section of the well around 400 metres, which had resulted in a delay of 10 days.

The well has successfully drilled through this challenging section.


Current operations

The well is currently rigging up to run the 9-5/8” casing liner at section Total Depth (TD) of 1,011 metres.


Forward Plan

After the 9-5/8” casing liner has been cemented, drilling will continue to the expected oil zone where 90 metres of conventional coring will take place.

After obtaining the core, the final section of the well will be drilled to a TD of 1,440 metres.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 01 Jul 2016 18:30:00 -0400 https://www.proactiveinvestors.com/companies/news/151599/carnarvon-petroleum-ltd-updates-on-progress-at-outtrim-east-1-69578.html
<![CDATA[News - Carnarvon Petroleum: Partner Quadrant Energy commences Outtrim East-1 well ]]> https://www.proactiveinvestors.com/companies/news/151598/carnarvon-petroleum-partner-quadrant-energy-commences-outtrim-east-1-well-69297.html Carnarvon Petroleum Ltd (ASX:CVN) has said that the operator of the Outtrim East-1 well, Quadrant Energy, has advised that the well commenced drilling on 18 June 2016.

Quadrant (71.5%) is the operator, with Carnarvon 28.5%.

The aim of the Outtrim East-1 well is to explore for additional hydrocarbon bearing sands to the North and East of the hydrocarbon reservoir seen at the Outtrim-1 oil discovery.

The Outtrim East-1 well is located within the WA-155-P(1) exploration permit in the North West Shelf of Australia.


Forward plan

The forward plan is to drill to around 1,300 metres MD, which is expected to be just above the Pyrenees Formation, which was oil-bearing in the Outtrim-1 well situated 1 kilometre away.

It is then planned to obtain around 90 metres of conventional core.

After obtaining the core, the final section of the well will be drilled to a Total Depth (TD) of 1,440 metres.

The company expects to be in a position to report on whether the target formations are hydrocarbon-bearing, and the extent of any reservoir sands intersected, after completion of the wireline logging and pressure and fluid sampling program.

This is scheduled to be the final process in the well, namely after coring is complete.

Carnarvon expects the estimate of recoverable volumes for the Outtrim and Outtrim East structures to follow receipt of laboratory tests, a process that will take several months after completion of the well.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 20 Jun 2016 09:30:00 -0400 https://www.proactiveinvestors.com/companies/news/151598/carnarvon-petroleum-partner-quadrant-energy-commences-outtrim-east-1-well-69297.html
<![CDATA[News - Carnarvon Petroleum Ltd: Roc-2 appraisal well on schedule ]]> https://www.proactiveinvestors.com/companies/news/151597/carnarvon-petroleum-ltd-roc-2-appraisal-well-on-schedule-69097.html Carnarvon Petroleum Ltd (ASX:CVN) has confirmed the timing and location of the Roc-2 well in WA-437-P.

The well has been designed to appraise and test the Roc-1 gas-condensate discovery revealed earlier in the year.

The Operator of the WA-437-P exploration permit, Quadrant Energy, has advised that the “Ocean Monarch” rig is expected on location at the Roc-2 site in the last week of June or the first week of July.

The Ocean Monarch will have the capability and approvals to undertake well testing if the expected hydrocarbons are confirmed whilst drilling this well.

The Roc-2 appraisal well is required to delineate the extent of the Roc field, calibrate reservoir parameters, understand reservoir deliverability and characterise fluid properties.

Roc-2 will be drilled to a depth of 5,250 metres with capacity to extend to 5,700 metres if justified by hydrocarbon shows, reservoir quality and drilling conditions.

Full well-bore coring and flow-testing are planned for this well over the Caley sandstones, taking the total time to drill, core and test to around 98 days.


Roc-2 location and volumes

The Roc-2 well is located in around 100 metres water depth, around 160 kilometres north-east of Port Hedland in the Bedout sub-basin of the greater Roebuck basin.

Roc-1 encountered a gross reservoir section of around 120 metres in the Caley, with the top 40 meters being hydrocarbon bearing.

The Roc-2 well is designed to appraise this reservoir section in an updip location, around 5 kilometres to the east of the Roc-1 well.


Adrian Cook, managing director, commented:

“Our growth has been very rapid this year with us securing a number of new additions to the portfolio.
"Encouragingly, we’ve been able to achieve these goals while simultaneously advancing our existing projects.

"But of particular interest in the near term is drilling the Roc-2 well with Quadrant Energy, particularly so soon after making the Roc-1 discovery in January this year.

"In the success case, the Roc-2 appraisal well will confirm our gas and condensate volume estimates and provide us with important information on the flow rates of these hydrocarbons from the reservoir.

"We also have plans to explore a secondary deeper objective in the Roc-2 well, targeting a zone that contained encouraging hydrocarbon shows in the bottom hole section of the Roc-1 well, following success in the primary target and accommodating well conditions.

"The Roc-1 well laboratory results have an important bearing on this project, and I’m pleased to report that the results have begun to come in and have exceeded our expectations."


Analysis

News flow will remain strong for Carnarvon, and not just from the Roc wells.

At the end of last month, the company expanded its portfolio with the acquisition of oil prone acreage on Australia’s North West Shelf.

The move adds another high quality asset to Carnarvon's growing portfolio of oil and gas exploration projects in the area.

WA-523-P is highly prospective with circa 1.3 billion barrels of oil equivalent nearby.

Prior to this acquisition, Hartleys placed a Speculative Buy and a $0.16 12-month price target on Carnarvon.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 08 Jun 2016 09:23:00 -0400 https://www.proactiveinvestors.com/companies/news/151597/carnarvon-petroleum-ltd-roc-2-appraisal-well-on-schedule-69097.html
<![CDATA[News - Carnarvon Petroleum Ltd acquires high quality North West Shelf asset ]]> https://www.proactiveinvestors.com/companies/news/151596/carnarvon-petroleum-ltd-acquires-high-quality-north-west-shelf-asset-68896.html Carnarvon Petroleum Ltd (ASX:CVN) has expanded its portfolio with the acquisition of oil prone acreage on Australia’s North West Shelf.

The move adds another high quality asset to Carnarvon's growing portfolio of oil and gas exploration projects in the area.

WA-523-P is highly prospective with circa 1.3 billion barrels of oil equivalent nearby.

Adrian Cook, managing director, commented:

“This area of the North West Shelf has tremendous opportunity and is an important addition to our portfolio.

"The permit could clearly fulfil our strategic intent: ‘to find and commercialise major oil and gas resources on the North West Shelf’.

"Without doubt, the mapped prospectivity in this proven oil province, and within the permit, has outstanding development potential."

WA-523-P includes the Buffalo Oil Field that produced around 20 million barrels of high quality oil and was flowing around 4,000 barrels of oil a day when operations ceased in 2004.

Depending on oil price and remapping of the field, Buffalo may be a commercially attractive re-development opportunity in the future, perhaps for tie-back to nearby facilities.


Acquisition  process

Carnarvon acquired WA-523-P through the Government gazettal process by successfully bidding a work program comprising reprocessing existing 3D seismic data and interpretation and analysis of the data within the initial firm three year term.

Carnarvon has already initiated the reprocessing work which is expected to take around 12 months to complete.

If the results prove successful, Carnarvon at its discretion may commit to acquire new 3D seismic data and drill a well over the course of the following three years.


North West Shelf footprint

Carnarvon’s present acreage on the NWS is circa 35,000 square kilometres (~18,700 squre kilometres net to CVN).

WA-523-P covers 4,220 squre kilometres and is located in the northernmost extent of Western Australian waters.

The new permit is also closely proximal to proven oilfields at Laminaria, Corallina, Kitan, Jahal, and Kuda Tasi that collectively contain around 280 mmbbl initially recoverable all lying within 15 kilometres of WA-523-P.

Further south, the giant Bayu-Undan gas/condensate field, and the Kakatua and Elang oil fields lie just 25-40 kilometres to the east of WA-523-P.

In total, within about 40 kilomertes around WA-523-P, these discovered fields
are estimated to collectively contain about 730 million1 barrels of oil and 3.4 Tcf of gas.


Analysis

This is a quality acquisition secured at the right time in the cycle, securing a rare opportunity for a fraction of the cost of the commitments made by peers in bid rounds only a year or two ago.

Carnarvon has picked up assets before during difficult times, and benefited from the move, such as the acquisition of the Phoenix project during the GFC period of 2009.

Prior to this acquisition, Hartleys placed a Speculative Buy and a $0.16 12-month price target on Carnarvon.

Carnarvon’s current cash balance is close to A$100 million, or $0.098 per share.

Carnarvon last traded at $0.097, under cash-backing.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 30 May 2016 09:30:00 -0400 https://www.proactiveinvestors.com/companies/news/151596/carnarvon-petroleum-ltd-acquires-high-quality-north-west-shelf-asset-68896.html
<![CDATA[News - Carnarvon Petroleum Ltd: Two wells and a $100m in cash ]]> https://www.proactiveinvestors.com/companies/news/151595/carnarvon-petroleum-ltd-two-wells-and-a-100m-in-cash-68865.html Carnarvon Petroleum Ltd (ASX:CVN) has received a Speculative Buy and a $0.16 12-month price target from broker Hartleys.

Carnarvon last traded at $0.09.

The following is an extract from the report.


Two wells and a $100m in cash

Carnarvon Petroleum Ltd (CVN) is on track to participate in two offshore wells before the end of 2016.

Both wells have a high chance of discovering hydrocarbons and therefore represent catalysts to move the stock price.

The Roc-#2 well has the potential to confirm the minimum economic field size estimate by CVN of 325 Bcf and 17MM bbls of condensate.

Pre-drill estimates suggest the net cost to CVN will be A$21m for both wells. CVN’s current cash balance is closer to A$100m or 9.8cps.

We have a Speculative Buy recommendation on CVN with a 12-mnth target price of 16cps.


Outtrim East #1 well – expected to spud in June

The Outtrim East-#1 is expected to spud in mid-June. The well is located 970m east of the Outtrim-#1 well, which discovered oil.

CVN estimate their share of the well cost is A$7m (based on CVN’s 28.5% interest in the block).

Drilling is expected to take 25 days on a trouble free basis.

The drilling success rate in this area of the Barrow Sub-Basin has been high however the volumes have been small.

CVN and operator Quadrant believe they have identified a thicker section of the reservoir identified in the Outtrim- #1 well from the reinterpretation of 3D seismic data.

The JV pans to run a full suite of logs in addition to taking fluid and core samples.

The Outtrim-#1 well was drilled by Esso Australia Ltd (Esso) in 1984. The well had a target depth of 1,725m and discovered oil within the late Jurassic sequence.

CVN acquired a 28.5% interest in the permit WA-155-P(1) from Inpex in January 2016.


Roc-#2 – expected to spud in July

CVN expect to spud the Roc-#2 well in July this year. CVN believe Roc-#1 was drilled through the edge of the Roc structure.

Roc-#2 will be drilled through predicted crest of the structure thus testing the extent of the contingent and prospective resource. (2C of 270 bcf and 13MM bbls condensate, Prospective Resource Mid of 193 Bcf and 9MM bbls condensate).

CVN classifies the prospective resource as low risk and places an 80% chance of geological success.

In addition, Roc-#2 will test the Milne sandstone section encountered at the bottom of the Roc-#1 well.

Hydrocarbons were encountered in this section which occurred at TD of Roc-#1. CVN estimate the minimum economic field size for the Roc resource is approximately 325 Bcf and 17MM bbls of condensate.


12-month target price of 16cps

CVN’s current cash balance is circa A$100m or 9.8cps.

Within our valuation we only assign value to the cash post the cost of the Outtrim-East #1 and Roc-#2 wells (A$21m).

The balance of our valuation comes from the combined Phoenix South and Roc discoveries.

As with any exploration and appraisal drilling, success may not be achieved. For CVN shareholders, a strong balance sheet provides protection from the vagaries of offshore drilling.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 27 May 2016 09:30:00 -0400 https://www.proactiveinvestors.com/companies/news/151595/carnarvon-petroleum-ltd-two-wells-and-a-100m-in-cash-68865.html
<![CDATA[News - Carnarvon Petroleum Ltd: Outtrim East-1 on schedule for drilling in June ]]> https://www.proactiveinvestors.com/companies/news/151594/carnarvon-petroleum-ltd-outtrim-east-1-on-schedule-for-drilling-in-june-68610.html Carnarvon Petroleum Ltd (ASX:CVN) has outlined that the Outtrim East-1 well is on schedule to commence drilling in June 2016.

A key objective is to test for the presence of hydrocarbons in the Lower Cretaceous Barrow Group sandstones Pyrenees Formation, similar to the Outtrim-1 sequence.

The well is located 970 metres east of the Outtrim-1 well in 95 metres of water with a target interval around 1,400 metres below the sea bed.

The well is expected to take 25 days to complete on a trouble free basis.

The net cost to Carnarvon is expected to be around A$7 million based on its 28.5% interest.

Reinterpretation of 3D seismic data indicates significant pay potential in this proven oil bearing target.

The Noble Tom Prosser rig will drill the well under contract with operator Quadrant Energy, which will test a proven oil play in the area with upside potential.


Adrian Cook, managing director for Carnarvon, commented:

“The Outtrim East-1 well will test the extent of the Outtrim-1 oil discovery and upside potential in new oil charged sands to the north and east of the Outtrim-1 well.

"We are looking forward to completing this well, determining its potential for development, and considering further exploration and appraisal drilling possibilities to enhance the project’s value proposition.

"We are in a very exciting period of time for the company with this well and the Roc-2 appraisal well expected to commence in July 2016 providing significant opportunity for and interest in Carnarvon.

"Positive drilling results from either or both wells have the potential to materially deliver on Carnarvon’s strategic objectives, namely ‘to find and commercialize major oil and gas resources on the North West Shelf (NWS).”


Additional objects of the Outtrim East-1 well include:

- To drill below the oil water contact to Total Depth with log coverage over the zone of interest;
- To evaluate the objective interval for the presence of reservoir and hydrocarbons using quantitative gamma-ray, resistivity, neutron, density, CMR and sonic logs;
- To obtain formation pressures and fluid samples over the hydro-carbon bearing interval; and
- To obtain conventional core over the Pyrenees Formation objective.


Analysis

The Outtrim East-1 well is located to test the extent of the Outtrim-1 discovery and test highly prospective sands to the North and East of the Outtrim-1 well.

Drilling will start in June 2016.

Carnarvon is also expected to commence the Roc-2 appraisal well in July 2016.

Well-funded:

Carnarvon maintains a strong financial position with A$95.5 million in cash, future receivables worth up to US$31.3 million and an A$8 million cost carry on the Roc-2 well, as at the end of March 2016.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 16 May 2016 09:30:00 -0400 https://www.proactiveinvestors.com/companies/news/151594/carnarvon-petroleum-ltd-outtrim-east-1-on-schedule-for-drilling-in-june-68610.html
<![CDATA[News - Carnarvon Petroleum Ltd receives ASX Price and Volume Query ]]> https://www.proactiveinvestors.com/companies/news/151593/carnarvon-petroleum-ltd-receives-asx-price-and-volume-query-68456.html Carnarvon Petroleum Ltd (ASX:CVN) has responded to an ASX Price and Volume Query after the company hit $0.10 intra-day today, a 16% increase from the closing price a day before.

Carnarvon said that it is not aware of any information concerning it that has not been announced to the market.

The company added in to its response to the ASX:

"Yesterday the media reported that Quadrant Energy has agreed to acquire Finder Exploration and JX Nippon’s interest in the Bedout Sub-basin permits of which Carnarvon holds and retains a 20% interest.

"We believe the media coverage associated with the transaction has brought attention to the forthcoming drilling activity in the Roc resource and Carnarvon’s other drilling activities with Quadrant in Outtrim East-1 which has been previously articulated to the market."

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 05 May 2016 18:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151593/carnarvon-petroleum-ltd-receives-asx-price-and-volume-query-68456.html
<![CDATA[News - Carnarvon Petroleum Ltd is fully cash backed ]]> https://www.proactiveinvestors.com/companies/news/151592/carnarvon-petroleum-ltd-is-fully-cash-backed-68245.html Carnarvon Petroleum Ltd (ASX:CVN) has now made two discoveries in its first two exploration wells in the North West Shelf (NWS) off the coast of Western Australia, with two more wells planned for CY2016.

Carnarvon has a strategic focus on the NWS where it has a 20% equity stake alongside operator Quadrant Energy in both the Phoenix South and Roc joint ventures (JVs).

After making the gas and condensate discovery at Roc-1 in January, the JV has committed to drill Roc-2, commencing between June and September this year.

The company has entered into an agreement to participate in the Outtrim East-1 exploration well in June 2016 where it has a 28.5% interest with operator Quadrant.

Carnarvon were also awarded an exploration permit adjacent to the blocks containing the Phoenix South and Roc discoveries.

At 31 March, the company had A$95.5 million in cash, future receivables worth up to US$31.3 million and an A$8 million cost carry on the Roc-2 well.


Increasing portfolio

Carnarvon acquired 28.5% of WA-155-P(1) which contains the 1984 Outtrim-1 discovery.

The JV is on target to commence drilling the Outtrim East-1 well in June 2016 with the Noble Tom Prosser drilling rig.

The Outtrim East-1 well is located to test the extent of the Outtrim-1 discovery and test highly prospective sands to the North and East of the Outtrim-1 well.

The company was also awarded the WA-521-P exploration permit which was accepted on 6 April 2016.

This block is adjacent to the successful Phoenix Area which contains the Roc and Phoenix South
discoveries.

Preliminary work has identified large structures in the permit and seismic data indicates the potential for hydrocarbon source rock for Phoenix South and Roc to also be in the new permit.


Phoenix South

Light oil was discovered in the Phoenix South-1 well in the second half of 2014. 

This is the first time an oil discovery has been made in lower triassic aged sediments on the NWS.

DeGolyer and MacNaughton assessed the mid case estimate of recoverable oil at Phoenix South to be 19 million barrels, with upside potential of up to 55 million barrels of recoverable oil.

This Phoenix South oil is of a similar quality to the Roc condensate and could be tied in and produced within a common development infrastructure.


Roc

Gas and condensate was discovered while drilling the Roc-1 well, as reported in January 2016.

Preliminary technical work indicates that the gas and condensate can be brought to surface and will be confirmed by a flow test in the proposed Roc-2 well.

The forthcoming Roc-2 well will target the interpreted crest of the Roc structure, thereby testing the extent of the contingent and prospective resources.

A successful result would not only clarify the current contingent resource but also enable the recategorisation of the prospective resource into contingent resource.

These prospective resources are classified as low risk with a geological chance of success of 80%.

Carnarvon estimates if Roc-2 encounters the 2C and mid / best case estimates of gas and condensate, it is likely that the Roc resource will be commercial and well advanced in terms of being re-categorised as reserves.


Analysis

Carnarvon maintains its strategic focus on the NWS with two discoveries in the first two wells.

The two wells planned for CY 2016 gives investors access to large potential catalysts.

The company is actively growing its asset portfolio in the current period of opportunity and strengthening its relationship with its partner Quadrant.

West Texas Intermediate crude has consolidated off its recent lows and is now trading around US$43.50 per barrel. 

Carnarvon maintains a strong financial position with A$95.5 million in cash, future receivables worth up to US$31.3 million and an A$8 million cost carry on the Roc-2 well.

With a market cap of circa $85 million, the company is fully cashed backed.


Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Fri, 22 Apr 2016 10:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151592/carnarvon-petroleum-ltd-is-fully-cash-backed-68245.html
<![CDATA[News - Carnarvon Petroleum Ltd strategically builds North West Shelf portfolio ]]> https://www.proactiveinvestors.com/companies/news/151591/carnarvon-petroleum-ltd-strategically-builds-north-west-shelf-portfolio-67909.html Carnarvon Petroleum Ltd (ASX:CVN) has secured a 100% interest in a newly awarded offshore exploration permit, WA-521-P, located in the Roebuck Basin.

The permit is positioned immediately adjacent to the Phoenix/Roc acreage on Western Australia’s North West Shelf (NWS).

Adding interest, several structures are larger in area than the Phoenix / Roc discovery areas.

Carnarvon is the financial envy of many mid caps, holding $100 million in cash, no debt, and minimal commitments.

The company, with its partners, is a leader in discovering a new hydrocarbon province on the NWS.


Adrian Cook, managing director and CEO, commented:

“Carnarvon continues to build its North West Shelf portfolio, which now includes the Cerberus blocks (100% CVN), the Phoenix/Roc acreage (20-30% CVN), the Outtrim block (28.5% CVN) and now WA-521-P (100% CVN).

"As we continue to unlock the potential of the Lower Triassic petroleum systems along the North West Shelf, Carnarvon has demonstrated its strategic focus by securing low-cost acreage in highly prospective locations that are capable of being matured ahead of a rising oil price cycle.”


Why the Lower Triassic petroleum system

For the past five years Carnarvon has been studying the potential of the Lower Triassic petroleum system.

The company believes the system lies along the entire length of the NWS.

The discovery of hydrocarbons (oil, condensate and gas) at the Phoenix South-1 and Roc-1 wells in this Lower Triassic stratigraphy validates this theory and provides the justification for securing WA-521-P.

The Lower Triassic source rocks have potentially generated and trapped oil and gas into shallower overlying Jurassic sands.

Carnarvon applied to the Government for WA-521-P during the current low oil price cycle, with a low-cost bid of purchasing 4,000 kilometres of reprocessed 2D seismic during the first three year term, and acquiring an optional 300 square kilometre 3D seismic survey in year 5 of the following discretionary three year term.

Keys:

- The potential for the proven Lower Triassic petroleum systems and source rocks from the Phoenix and Roc area to extend into WA-521-P;
- Lower Triassic generated hydrocarbons can directly charge into the overlying Jurassic Sands;
- Jurassic sands are sealed by regionally extensive Cretaceous shales; and
- Numerous structural closures and initial seismic mapping indicates the structures to be larger in area than the Phoenix South and Roc discovery closure areas.


Analysis

Today Carnarvon has further demonstrated its strategic focus on the NWS in Western Australia, taking the opportunity to increase its portfolio at a time of oil price weakness, therefore further leveraging itself to a recover in the commodity.

Carnarvon already has two discoveries in first two NWS exploration wells, with another two wells planned for CY2016.

Carnarvon is the financial envy of many mid caps, holding $100 million in cash, no debt, and minimal commitments.

And with a market cap of circa $80 million, Carnarvon is trading well under cash backing.

Adding further to the financial opportunity, is up to a $45 million receivable from future oil sales.

The cost carry on Roc-2 well net to Carnarvon is $8 million.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 06 Apr 2016 11:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151591/carnarvon-petroleum-ltd-strategically-builds-north-west-shelf-portfolio-67909.html
<![CDATA[News - Carnarvon Petroleum Ltd: Partners agree Roc discovery warrants appraisal ]]> https://www.proactiveinvestors.com/companies/news/151590/carnarvon-petroleum-ltd-partners-agree-roc-discovery-warrants-appraisal-67570.html Carnarvon Petroleum Ltd (ASX:CVN) has provided an update following a recent meeting of the WA-435-P and WA-437-P joint venture partners.

Quadrant Energy is the Operator (40%), JX Nippon 20%, Finder Exploration 20%, and Carnarvon 20%.

Roc-1 well confirms up to 372 Bscf of gas and 18 million barrels of condensate recoverable (Gross 3C contingent resource).

Additional prospective resources of 328 Bscf of gas and 16 million barrels of condensate recoverable (Gross high estimate prospective resource).

The preliminary minimum economic field size as estimated by Carnarvon Petroleum is around 325 Bscf and 17 million barrels of condensate (Gross).

The joint venture partners have unanimously agreed that the Roc discovery warrants appraisal.

Planning is underway to drill a Roc-2 appraisal well early in the second half of calendar 2016 to confirm the higher volumes as depicted.


Adrian Cook, MD and CEO, commented:

“The Roc structure is a particularly compelling appraisal proposition.

"We are confident about several important elements in the structure, including the quality of the gas and condensate discovered in the Roc-1 well, the quality of the reservoir rocks that contain the discovered hydrocarbons, the outer extent of the structure via the gas water contact and the size of the structure as mapped on modern 3D seismic data.

"The Roc-2 well will seek to prove that gas and condensate exists down to the gas water contact (GWC).

"In this case it is expected the volumetric range will narrow to the “Best” to “High” estimate for the aggregated contingent and prospective resources.

"This outcome, on our projections, would be above the minimum economic threshold."


Roc-2 details

Roc-2 has been assessed as a relatively low risk appraisal well with a successful outcome being a significant step forward in supporting a development hub for gas and liquids (oil and condensate) that also opens up the province to additional development and appraisal projects.


Phoenix South structure

Cook added: "In terms of potential additional development and appraisal projects we continue to assess the Phoenix South structure.

"This project was always considered for its tie back potential to Roc and is still of interest in this regard.

"We are also considering the regional significance of compelling hydrocarbon shows recorded in the deeper section of the Roc-1 well, that were observed down to the well’s total depth (TD).

"The science clearly shows us there are prolific hydrocarbon generating source rocks within the Bedout sub-basin and our new 3D seismic data stretching beyond the Roc structure is showing us there are a significant number of large structures warranting further exploration within the area.”


Next steps

The Operator is currently advancing a suite of technical projects that are expected to be completed over the course of the 2016 calendar year.

This work will assist in future drilling activities including the Roc-2 appraisal well.

Planning for this well is in progress and at this time drilling is expected to commence early in the second half of calendar 2016 and will include full conventional coring of the reservoir followed by flow testing.

The Roc-2 well location is expected to be some 5 to 6 kilometres to the east of the Roc-1 well.

The well has an estimated 80% chance of geological success with the extent to which the Caley sandstone reservoir is present being the primary risk.


Analysis

Carnarvon maintains its strategic focus on the North West Shelf of Australia, with two discoveries in the first two wells.

Two more wells are planned for CY 2016, with the company actively growing its asset portfolio in the current period of opportunity.

The Roc-1 well follows the Phoenix South-1 oil discovery drilled in late 2014, 20 kilometres to the North West of Roc-1, by the same joint venture partners as the Roc-1 well.

These wells together with the original Phoenix-1 and 2 discoveries drilled by BP in 1980 and 1982 in conjunction with the recent technical work completed, prove that an active petroleum system exists in the area.

The quality of the reservoir discovered in the Roc-1 well is an important and significant step forward in unlocking the commercial potential in the region.

Strong financial standing:

- Market cap. of $80 million, with $100 million in cash and no debt.
- Plus a $45 million receivable from future oil sales (up to).
- $8 million cost carry on Roc-2 well net to Carnarvon.

(Oil sales: Calculated as 12% of 20% of Thailand oil field revenue, cash of $1.1 million received from scheduled first payment).

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 17 Mar 2016 09:30:00 -0400 https://www.proactiveinvestors.com/companies/news/151590/carnarvon-petroleum-ltd-partners-agree-roc-discovery-warrants-appraisal-67570.html
<![CDATA[News - Carnarvon Petroleum grows offshore oil portfolio, plans 2016 drilling ]]> https://www.proactiveinvestors.com/companies/news/151589/carnarvon-petroleum-grows-offshore-oil-portfolio-plans-2016-drilling-66745.html Carnarvon Petroleum (ASX:CVN) has gained exposure to a drill-ready offshore project with already defined resources in proximity to the company's existing  Phoenix oil properties on Western Australia's North West Shelf.

Carnarvon has secured a 35% stake in the Barrow sub-basin oil project, with the company's Phoenix operating partner Quadrant Energy retaining the balancing 65% interest.

With Quadrant as operator, the joint venture has proposed to drill the project's Outtrim East prospect around June 2016 along with a suite of related targets and leads.

This work will attempt to add to the project's existing Blencarthra resource by testing the extent of the Outtrim-1 oil discovery and new oil charged sands to the north and east of the Outtrim-1 well.

Carnarvon will pay its 35% share of the cost to drill the Outtrim East-1 well which is estimated to be approximately A$10 million net.

The company will also pay a modest consideration to the vendors to enter the project.

Prior to the deal, Carnarvon held three exploration permits in the Barrow sub-basin, including a block containing the highly prospective Kybra channel where state government research as recently flagged the presence of mature oil source rocks. 


Recent progress

Expansion of Carnarvon’s footprint in the North West Shelf region has built immediately on momentum related to the recovery of gas from the nearby Roc-1 well.

The quality of this sample has been confirmed as being at the top end of Carnarvon’s condensate-to-gas ratio estimate of 20 to 40 barrels per million cubic feet of gas.

This update coincided with completion of the project's wireline logging program and removal of the rig from the Roc-1 location, about 20 kilometres southeast of last year's Phoenix South-1 oil discovery and around 150 kilometres north of Port Hedland.

This program had previously confirmed reservoir quality sands with net hydrocarbon interval of 10 metres from the gross 40 metre sand column over the interval from 4,380 metres to 4,420 metres.

Pressure testing has confirmed at least three discrete hydrocarbon columns in the section from 4,380 metres to 4,420 metres.

Roc-1 is controlled 20% by Carnarvon and 40% by operator Quadrant.


Analysis

Carnarvon’s consolidation of its holdings on the North West Shelf represents a significant show of faith in this region and could prove a savvy move to opportunistically grow its portfolio during a rough patch for the oil sector.

The project likewise illustrates the mutual confidence and strong relationship between Carnarvon and its partner Quadrant - a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG).

The opportunity provides Carnarvon with substantial development upside for a relatively modest investment and represents another step forward in its strategy to position Carnarvon for a recovery in oil prices.

Timing of the deal appears to be positive, with West Texas Intermediate crude having gained more than 20% in value over the past week.

Carnarvon price catalysts now include the upcoming drilling program at the newly acquired property as well as an estimate of the recoverable volumes at Roc-1, where recent gas quality analysis has reinforced potential for a simple, low-cost development close to infrastructure.


Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 28 Jan 2016 12:48:00 -0500 https://www.proactiveinvestors.com/companies/news/151589/carnarvon-petroleum-grows-offshore-oil-portfolio-plans-2016-drilling-66745.html
<![CDATA[News - Carnarvon Petroleum granted ASX trading halt ]]> https://www.proactiveinvestors.com/companies/news/151588/carnarvon-petroleum-granted-asx-trading-halt-66715.html Carnarvon Petroleum (ASX:CVN) has been granted a trading halt by the ASX, with its shares placed in pre-open.

Carnarvon requested the halt pending an announcement in relation to a North West Shelf asset transaction.

The halt will remain in place until the opening of trade on Friday 29th January 2016, or earlier if an announcement is made to the market.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 27 Jan 2016 14:00:00 -0500 https://www.proactiveinvestors.com/companies/news/151588/carnarvon-petroleum-granted-asx-trading-halt-66715.html
<![CDATA[News - Carnarvon Petroleum ends 2015 with $100M cash at bank ]]> https://www.proactiveinvestors.com/companies/news/151587/carnarvon-petroleum-ends-2015-with-100m-cash-at-bank-66681.html Carnarvon Petroleum (ASX:CVN) is very well-funded, ending 2015 with A$100 million in cash.

Carnarvon also has future cash flows due of up to US$31.3 million (A$44 million), yet the company is currently capitalised at just $80 million based on the latest $0.079 share price.

Adding interest, there is also a A$30 million to A$40 million (gross) farm out carry that remains available for any Roc-2 well.

The company has achieved two important discoveries at its Phoenix project, being the Roc-1 condensate rich gas discovery in the December 2015 quarter, and the Phoenix South-1 light oil discovery in 2014.

Carnarvon is focused on building a North West Shelf oil and gas business.

Adrian Cook, managing director, commented:

"Once the joint venture partners have had the opportunity to consider the results of the Roc-1 well, I expect a meeting will be arranged to discuss the timing and location of follow up wells to further explore and appraise this resource."

 

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Fri, 22 Jan 2016 14:00:00 -0500 https://www.proactiveinvestors.com/companies/news/151587/carnarvon-petroleum-ends-2015-with-100m-cash-at-bank-66681.html
<![CDATA[News - Carnarvon Petroleum, Quadrant Energy confirm Roc quality ]]> https://www.proactiveinvestors.com/companies/news/151586/carnarvon-petroleum-quadrant-energy-confirm-roc-quality-66603.html Carnarvon Petroleum (ASX:CVN) and operating partner Quadrant Energy have established recently recovered gas from the Roc-1 well oil offshore Western Australia as being at the top end of its condensate-to-gas ratio estimate.

The Roc-1 well is located in WA-437-P, 20 kilometres south-east of the 2014 Phoenix South-1 oil discovery. Carnarvon Petroleum holds a 20% equity interest in the well while operator Quadrant Energy owns 40%.

The condensate-to-gas ratio gas has been confirmed as at the top end of a range of 20 to 40 barrels per million cubic feet of gas. 

This update has coincided with completion of the project's wireline logging program and removal of the rig from the Roc-1 location, about 20 kilometres southeast of last year's Phoenix South-1 oil discovery and around 150 kilometres north of Port Hedland.

This program had previously confirmed reservoir quality sands with net hydrocarbon interval of 10 metres from the gross 40 metre sand column over the interval from 4,380 metres to 4,420 metres.

Pressure testing has confirmed at least three discrete hydrocarbon columns in the section from 4,380 metres to 4,420 metres.

The cost for the well has been on budget, inclusive of success case logging, sampling and coring costs.

Under previous farm-out agreements, in exchange for equity in the permits, Carnarvon bore no cost for this well.

Under the farm-out agreements, there remains a carry contribution towards any further drilling or testing in the WA-437-P permit (which hosts Roc-1) of about A$30 million to A$40 million (gross).


Forward plan

Carnarvon estimates it will be in a position to advise the market on the expected range of recoverable volumes of gas and condensate within the next six weeks.

Appreciating the Roc-1 well has just completed and data from the well needs to be properly assessed, a decision on the timing and location of the Roc-2 well has not yet been considered by the joint venture.

This will be done in due course and will be subject to joint venture and government approvals and rig availability.


Analysis

The initial well results at Roc-1 are increasingly encouraging, with the latest update importantly demonstrating the strong condensate-to-gas ratio of the recovered material. 

This reinforces the project’s existing potential as a simple, low-cost development close to infrastructure.

Price catalysis for the company in this context may be realised as the significant work expected to be undertaken in the coming months unfolds, including the completion of an estimate of the recoverable volumes involved.

This process is currently underway and expected to produce results within six weeks.

Research by Carnarvon’s privately owned joint venture partner Finder Exploration has delivered some strong preliminary information on the well results, including an Original Gas in Place (OGIP) estimate of up to 1.2 TCF and reservoir sands with permeability and strong water drive.

Finder Exploration’s initial assessment established a liquids-rich gas presence 40-60 bbls/mmcf with low CO2 & no H2S.

Upside is inherent in about 60 further prospects and leads currently identified and covering more than 10 square kilometres.


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Mon, 18 Jan 2016 10:30:00 -0500 https://www.proactiveinvestors.com/companies/news/151586/carnarvon-petroleum-quadrant-energy-confirm-roc-quality-66603.html
<![CDATA[News - Carnarvon Petroleum, Quadrant Energy recover gas at Roc-1 ]]> https://www.proactiveinvestors.com/companies/news/151585/carnarvon-petroleum-quadrant-energy-recover-gas-at-roc-1-66408.html Carnarvon Petroleum (ASX:CVN) and operating partner Quadrant Energy have confirmed the discovery of condensate-rich gas at the Roc-1 oil well offshore Western Australia.

Wireline logging over the interval from 4,380 metres to 4,420 metres has confirmed reservoir quality sands with net hydrocarbon interval of 10 metres from the gross 40 metre sand column.

Pressure testing has confirmed at least three discrete hydrocarbon columns in the section from 4,380 metres to 4,420 metres.

Formation fluid sampling has confirmed a liquids-rich gas with a condensate ratio of 20 to 40 barrels per million cubic feet being evaluated at the rig site using downhole instruments.

The fluid type will be confirmed in laboratory testing once the sample bottles are dispatched from the rig.

Mobility observations during pressure testing indicate good quality reservoir with inferred permeability in the range from 10 to 100 millidarcy.

Roc-1 well is located about 20 kilometres southeast of last year's Phoenix South-1 oil discovery and around 150 kilometres north of Port Hedland.


Spudding of the well has been carried to US$70 million by Quadrant and 20% partner JX Nippon.


Forward plan

It is estimated to take around 24 to 48 hours to complete the sidewall borehole core sampling.

Following the completion of the sampling program, operations for this well will be complete and the well will be left in a safe condition with the joint venture deciding not to deepen the well or retain the well for future re-entry.

The hydrocarbons discovered in Roc-1 are interpreted to be in a down dip location on the structure close to the calculated gas water contact.

The joint venture partners decided that testing at the potential crest of the structure with a later well designed for this sand would lead to higher confidence of achieving better results from a test program.


Analysis

The latest update from Carnarvon is encouraging as it confirms the presence of a live hydrocarbon system in the Roc-1 area, with indications that the condensate-rich gas resides in reservoir capable of being recovered in a conventional manner.

Importantly, the latest results confirm there is potential for both oil and condensate-rich gas at Roc-1.

Along with the information from the Phoenix South-1 discovery last year and the Phoenix-1 discovery in 1980, Roc-1 has provided a high level of encouragement in the immediate region as well as in the broader prospectivity of the acreage held by Carnarvon and its partners.

Future price catalysts for Carnarvon may develop as the company is in an exploratory phase in this region and more work is required before the company and the market can fully understand its potential.


Proactive Investors is a global leader in financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 04 Jan 2016 10:00:00 -0500 https://www.proactiveinvestors.com/companies/news/151585/carnarvon-petroleum-quadrant-energy-recover-gas-at-roc-1-66408.html
<![CDATA[News - Carnarvon Petroleum and partners commence logging program for Roc-1 ]]> https://www.proactiveinvestors.com/companies/news/151584/carnarvon-petroleum-and-partners-commence-logging-program-for-roc-1-66368.html Carnarvon Petroleum (ASX:CVN) has provided an update on drilling operations as advised by the operator of the Roc-1 well, Quadrant Energy.

The Roc-1 well is located in WA-437-P, 20 kilometres south-east of the 2014 Phoenix South-1 oil discovery, and around 150 kilometres north of Port Hedland.

Quadrant Energy is the operator of the well (40%) interest, with Carnarvon (20% free-carried). Other partners are JX Nippon 20% and Finder Exploration 20%.

Since the last report the 216 mm (8 ½”) hole has drilled from a depth of 4,855 metres to around 4,943 metres.

Carnarvon said that over the weekend the logging program commenced with quad combo wireline logging.

It is estimated to take a further three to five days to acquire the full suite of wireline data including sidewall borehole core samples and fluid samples.

After logging operations are complete the joint venture will decide whether to continue exploratory drilling past 4,943 metres.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 29 Dec 2015 09:20:00 -0500 https://www.proactiveinvestors.com/companies/news/151584/carnarvon-petroleum-and-partners-commence-logging-program-for-roc-1-66368.html
<![CDATA[News - Carnarvon Petroleum, Quadrant Energy to deepen Roc-1 well ]]> https://www.proactiveinvestors.com/companies/news/151583/carnarvon-petroleum-quadrant-energy-to-deepen-roc-1-well-66337.html Carnarvon Petroleum (ASX:CVN) has provided an update on drilling operations as advised by the operator of the Roc-1 well, Quadrant Energy.

The Roc-1 well is located in WA-437-P, 20 kilometres south-east of the 2014 Phoenix South-1 oil discovery, and around 150 kilometres north of Port Hedland.

Quadrant Energy is the operator of the well (40%) interest, with Carnarvon (20% free-carried). Other partners are JX Nippon 20% and Finder Exploration 20%.

Since the last report the 216 mm (8 ½”) hole has drilled from a depth of 4,435 metres to around 4,855 metres.


Encouraged

The joint venture said that it is encouraged by the previously reported evidence of a working petroleum system in the current well, and the observations of good quality sandstone sections, to continue drilling below the previously announced target depth of 4,750 metres.

The forward plan has been outlined as:

"It is expected to take at least another day to drill through to anticipated total depth of around 4,950 metres and condition the borehole for wireline logging. The information from the wireline logging tools is expected to take up to a further five to seven days to be obtained.

"The operator has proposed a suite of wireline logging including quad combo for resistivity and density/neutron measurements, formation pressure tools to determine fluid types (including fluid sampling) and pressure and mechanical sidewall coring tool to extract rock samples for later testing.

"The logging results are expected to provide additional information on, for example, the type of hydrocarbons present and the quality of the reservoir containing those hydrocarbons. One use of this information will be for the estimation of hydrocarbon volumes recoverable.

"Given the characteristics of the reservoir it is envisaged that volume estimates could be completed within a reasonable period following the well being completed."

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 23 Dec 2015 10:20:00 -0500 https://www.proactiveinvestors.com/companies/news/151583/carnarvon-petroleum-quadrant-energy-to-deepen-roc-1-well-66337.html
<![CDATA[News - Carnarvon Petroleum updates on Roc-1 well ]]> https://www.proactiveinvestors.com/companies/news/151582/carnarvon-petroleum-updates-on-roc-1-well-66253.html Carnarvon Petroleum (ASX:CVN) has received an update on Roc-1 well by the operator Quadrant Energy.

The Roc-1 well is located in WA-437-P, 20 kilometres south-east of the 2014 Phoenix South-1 oil discovery, and around 150 kilometres north of Port Hedland.

The 216 mm (8 ½”) hole has drilled from a depth of 4,000 metres to around 4,435 metres.

The progress report said that while drilling through the top section, equivalent to where the oil was discovered in Phoenix South-1, a number of sandstone intervals were intersected.

Interpretations from recording while drilling indicated sands of better reservoir quality than observed at Phoenix South-1, albeit with a more muted gas and hydrocarbon response.

Higher levels of C1 through to C5 (gas and oil indicators) have been observed to date in the current section of the well with Total gas readings across an approximate 25 metre clean sandstone of equal magnitude to the levels achieved while drilling through the reservoir sections at the nearby Phoenix South-1 well.

Currently, the rig was tripping out the hole in preparation to change the drill bit.

The forward plan is to drill ahead as scheduled to a Total Depth of 4,750 metres (subject to hole conditions) at which time a full suite of wireline logs will be acquired.


Equity holders

Quadrant Energy (40%) is operator, Carnarvon holds 20%, with JX Nippon 20% and Finder Exploration 20%.

Spudding of the well has been carried to US$70 million by Quadrant and 20% partner JX Nippon.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 18 Dec 2015 15:30:00 -0500 https://www.proactiveinvestors.com/companies/news/151582/carnarvon-petroleum-updates-on-roc-1-well-66253.html
<![CDATA[News - Carnarvon Petroleum, Quadrant Energy reach 4000 metres at Roc-1 well ]]> https://www.proactiveinvestors.com/companies/news/151581/carnarvon-petroleum-quadrant-energy-reach-4000-metres-at-roc-1-well-66206.html Carnarvon Petroleum (ASX:CVN) has provided an update that drilling is progressing at the Roc-1 well offshore Western Australia.

Quadrant Energy is acting as operator, and is a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG).

The well has now been drilled to a depth of 4000 metres, with drilling ahead in the 216 mm (8 1/2”) hole section.

The plan is to drill ahead as scheduled to around 4750 metres subject to hole conditions.

The operator has advised that it will not complete an intermediate logging run at a depth of around 4000 metres and will complete logging once the well reaches the total depth.


Roc prospectivity

There are grounds for optimism for Roc-1 well as it is a larger structure than Phoenix South residing in a shallower water depth and a shallower reservoir than Phoenix South.

It is also up-dip to the Phoenix South structure.

Carnarvon and its joint venture partners are targeting a best-case estimate of 42 million barrels of oil at Roc.

This would represent a substantial portion of the larger Phoenix resource, estimated in a best-case scenario to total 104 million barrels of oil over only 5% of acreage held by Carnarvon.

Success at Roc-1 would see the well suspended then re-entry for evaluation and further testing (including flow testing) and coring in the third quarter of 2016.


Equity holders

Quadrant Energy (40%) is operator, Carnarvon holds 20%, with JX Nippon 20% and Finder Exploration 20%.

Spudding of the well has been carried to US$70 million by Quadrant and 20% partner JX Nippon.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 16 Dec 2015 15:00:00 -0500 https://www.proactiveinvestors.com/companies/news/151581/carnarvon-petroleum-quadrant-energy-reach-4000-metres-at-roc-1-well-66206.html
<![CDATA[News - Carnarvon Petroleum directors exercise options and increase stake ]]> https://www.proactiveinvestors.com/companies/news/151580/carnarvon-petroleum-directors-exercise-options-and-increase-stake-66164.html Carnarvon Petroleum (ASX:CVN) directors have further aligned themselves with the company, as drilling of the Roc-1 well continues.

Directors now exercised their $0.10 listed options, with the company last trading at $0.115.

Adrian Cook, managing director and CEO, spent $64,000, while Edward Jacobson purchased $39,062.50 worth, and William Foster $15,625.

Cook added:

“I’m once again pleased by the commitment of directors and management to the company through the exercising of their options that were issued to all shareholders who participated in the company’s 2013 Entitlement Offer.

"We now look forward to receiving and reporting the results of the Roc-1 well in the coming weeks.”


Roc-1 oil

The well was spudded late last month in a known oil reservoir of the North West Shelf region, with Carnarvon partner Quadrant Energy - a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG) - acting as operator.

This well follows up last years’ successful Phoenix South-1 oil discovery.

The latest progress sets up ongoing development that is expected to deliver drilling through the final section to a total depth of around 4,750 metres within two weeks.

In a success case wireline logging will take a further five days to be obtained.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 15 Dec 2015 16:30:00 -0500 https://www.proactiveinvestors.com/companies/news/151580/carnarvon-petroleum-directors-exercise-options-and-increase-stake-66164.html
<![CDATA[News - Carnarvon Petroleum marks a positive advance at Roc oil well ]]> https://www.proactiveinvestors.com/companies/news/151579/carnarvon-petroleum-marks-a-positive-advance-at-roc-oil-well-66151.html Carnarvon Petroleum (ASX:CVN) is tracking encouraging momentum at its Roc-1 oil well offshore Western Australia with a casing cemented in place and drilling at a depth of 3,435 metres starting ahead of prognosis.

The well was spudded late last month in a known oil reservoir of the North West Shelf region, with Carnarvon partner Quadrant Energy - a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG) - acting as operator.

This well follows up last years’ successful Phoenix South-1 oil discovery.

The latest progress sets up ongoing development that is expected to deliver drilling through the final section to a total depth of around 4,750 metres within two weeks.

In a success case wireline logging will take a further five days to be obtained.

Quadrant has also proposed a contingent intermediate logging run at a depth of around 4,000 metres to de-risk data acquisition after drilling through the top reservoir of 3,750 metres in the approximate hole section equivalent to where oil was discovered in Phoenix South-1.

Roc-1 is about 20 kilometres southeast of Phoenix South-1 and around 150 kilometres north of Port Hedland.

Spudding of the well has been carried to US$70 million by Quadrant and 20% partner JX Nippon.


Roc prospectivity

There are grounds for optimism for Roc-1 well as it is a larger structure than Phoenix South residing in a shallower water depth and a shallower reservoir than Phoenix South. It is also up-dip to the Phoenix South structure.

Carnarvon and its joint venture partners are targeting a best-case estimate of 42 million barrels of oil at Roc.

This would represent a substantial portion of the larger Phoenix resource, estimated in a best-case scenario to total 104 million barrels of oil over only 5% of acreage held by Carnarvon.

Success at Roc-1 would see the well suspended then re-entry for evaluation and further testing (including flow testing) and coring in the third quarter of 2016.


Analysis

The systematic progress at Roc is encouraging as it reinforces Carnarvon's initial confidence that the well is well placed to access the same Lower Keraudren reservoir in which oil was discovered in the 2014 Phoenix South-1 well.

Potentially value-adding newsflow for the company would be delivered in the coming weeks as drilling continues to its maximum depth and further efforts to de-risk the project take shape. 


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 14 Dec 2015 12:20:00 -0500 https://www.proactiveinvestors.com/companies/news/151579/carnarvon-petroleum-marks-a-positive-advance-at-roc-oil-well-66151.html
<![CDATA[News - Carnarvon Petroleum's partner Quadrant Energy progresses Roc-1 well ]]> https://www.proactiveinvestors.com/companies/news/151578/carnarvon-petroleums-partner-quadrant-energy-progresses-roc-1-well-66076.html Carnarvon Petroleum (ASX:CVN) is entering one of the most exciting periods in the company's history as the high impact Roc-1 well is drilled on the North West Shelf.

This well follows up last years’ successful Phoenix South-1 oil discovery.

Quadrant Energy is the operator of the well (40%) interest, with Carnarvon (20% free-carried). Other partners are JX Nippon 20% and Finder Exploration 20%.

Carnarvon is very well-funded, with A$103 million in cash at the end of September 2015, with a market cap of circa $105 million.

Roc-1 well is located in WA-437-P, around 20 kilometres south-east of the 2014 Phoenix South-1 oil discovery, and around 150 kilometres north of Port Hedland.


Roc-1 well update

Quadrant Energy has advised that since the last report the 311 mm (12 ¼”) intermediate hole has been drilled down to 3,405 metres which completes this section of the well.

Currently, the well was in the process of setting the 244 mm (9 5/8”) casing.

Quadrant said that the next steps are expected to take up to one week to set and cement the 244 mm (9 5/8”) casing.

After this the well will drill the 216 mm (8 1/2”) reservoir section, equivalent to where the oil was discovered in the Phoenix South-1 well.


Key dates

The total depth is expected to be 4,700 metres in late-December 2015, and then the well will be suspended if successful.

The forward plan then includes in Q3, 2016, to re-enter well for extensive evaluation and testing.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 09 Dec 2015 13:10:00 -0500 https://www.proactiveinvestors.com/companies/news/151578/carnarvon-petroleums-partner-quadrant-energy-progresses-roc-1-well-66076.html
<![CDATA[News - Carnarvon Petroleum, Quadrant Energy drilling ahead at Roc-1 well ]]> https://www.proactiveinvestors.com/companies/news/151577/carnarvon-petroleum-quadrant-energy-drilling-ahead-at-roc-1-well-65949.html Carnarvon Petroleum (ASX:CVN) and partners are drilling ahead at the Roc-1 well in permit WA-437-P, which is located in Australia's North West Shelf.

The 445 mm (17 ½”) hole has been drilled down to 1,341 metres and 340 mm (13 3/8”) casing has been set and cemented to this point.

Currently, the well was being drilled ahead in the 311 mm (12 ¼”) intermediate hole section at a depth of 1,425 metres.

The permit is around 20 kilometres south-east of the 2014 Phoenix South-1 oil discovery, and 150 kilometres north of Port Hedland.

Quadrant Energy (40%) is operator, Carnarvon holds 20%, with JX Nippon 20% and Finder Exploration 20%.


Forward Plan

The well will drill the 311 mm (12 ¼”) hole to a depth of around 3,500 metres, and then set and cement 244 mm (9 5/8”) casing.

Following that the well will drill ahead in the 216 mm (8 1/2”) reservoir section equivalent to where the oil was discovered in the Phoenix South-1 well.


Carnarvon Petroleum's Adrian Cook in Proactive Q&A Sessions™

Recently, Adrian Cook, managing director, spoke exclusively to Proactive Q&A Sessions™.

ACCESS the interview here.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 03 Dec 2015 12:00:00 -0500 https://www.proactiveinvestors.com/companies/news/151577/carnarvon-petroleum-quadrant-energy-drilling-ahead-at-roc-1-well-65949.html
<![CDATA[News - Carnarvon Petroleum's Adrian Cook talks Roc in Proactive Q&A Sessions™ ]]> https://www.proactiveinvestors.com/companies/news/151576/carnarvon-petroleums-adrian-cook-talks-roc-in-proactive-qa-sessions-65852.html Carnarvon Petroleum's (ASX:CVN) managing director, Adrian Cook, has exclusively spoken to Proactive Q&A Sessions™.

Carnarvon recently reported that drilling of the Roc-1 well in permit WA-437-P in Australia's North West Shelf is underway as the operator Quadrant Energy spuds the well in a known oil reservoir.

Progress of the well will be closely watched following last year's discovery of a new oil province in the North West Shelf and the Phoenix South-1 oil well success in August 2014.

Roc will target the same Lower Keraudren reservoir in which oil was discovered in the 2014 Phoenix South-1 well by the same joint venture partners in an adjoining area of the wider Phoenix project.

Now that Roc-1 has spudded, drilling is expected to take around 35 to 40 days to reach a Total Depth of 4,700 metres.

Equity interest holders (upon satisfaction of the farm in agreement terms) in WA-437-P are: Carnarvon Petroleum: 20%, Quadrant Energy (Operator): 40%, JX Nippon: 20% and Finder Exploration: 20%.

Spudding of the well has been carried to US$70 million by JX Nippon and Quadrant – a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG).


PROACTIVE INVESTORS: Welcome Adrian.


What is the scope of your expectations for the upcoming drilling at Roc-1? Can you characterise the potential of the well?
 
Adrian Cook: On 7 April this year we announced the results of an independent resource assessment undertaken by industry expert DeGolyer and MacNaughton.

Their estimate for the Roc prospect, that will be tested by the Roc-1 well, is that the recoverable volume range is between 12 million barrels and 133 million barrels.

It's worth noting too that if Roc-1 well confirms the presence of the same oil discovered last year in the Phoenix South-1 well then the prospects between Roc and Phoenix South are highly likely to also contain oil.

DeGolyer and MacNaughton estimate that these additional prospects’ recoverable volume range is between 5 million barrels and 46 million barrels.

The discovery of oil in the Phoenix South-1 well last year and the interpretation that BP discovered oil in their Phoenix-1 well in 1980 means the possibility that Roc-1 well contains oil is high.

DeGolyer and MacNaughton assessed the Roc well as having a 42% chance of success, which is high in our industry for an exploration well.


What hints does the 2014 discovery at Phoenix South-1 provide about the potential of Roc-1 and the Lower Keraudren reservoir?
 
Adrian Cook: The Phoenix South-1 discovery was important for our industry because firstly, it proved for the first time on the North West Shelf that oil exists in the Keraudren formation and secondly, it proved a new oil basin along the North West Shelf.

The significance of the discovery led the joint venture partners to invest around $50 million in late 2014 acquiring a significant amount of 3D seismic data and new 2D seismic data.

To put this into context, before the present joint venture partner group began its exploration program, this area of the North West Shelf contained no 3D seismic data.

So we are involved in an important step change in terms of the application of new data to what is now a proven petroleum system.

The area we are dealing with is enormous and available data is limited so the process to explore and discover the potential of this basin will take us some time.

That said, the Roc-1 well is now drilling and will hopefully provide us with exciting new information very early in the New Year.


How is timing relevant to Carnarvon’s strategy of drilling Roc-1 during a slump for the macro oil market?

Adrian Cook: In a broad sense, oil prices affect two components of our business, namely input costs and values.

In a low oil price environment business input costs, such as for the acquisition of new seismic data and drilling wells tend to fall.

Similarly, in this environment production revenues and asset divestment values also fall.

And of course the converse occurs as oil prices rise.

In the current environment of low oil prices we’re seeing some benefits associated with decreasing costs from service providers.

The ideal scenario is that this environment continues until we proceed to develop and produce oil from this area or until we divest our interests, at which time it would be advantageous if the oil price were to increase.

So timing is important around spending activities and value realising activities and its one that we consider when assessing our projects.


PROACTIVE INVESTORS: Thank-you Adrian.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 30 Nov 2015 07:00:00 -0500 https://www.proactiveinvestors.com/companies/news/151576/carnarvon-petroleums-adrian-cook-talks-roc-in-proactive-qa-sessions-65852.html
<![CDATA[News - Carnarvon Petroleum and partners spud Roc well in North West Shelf ]]> https://www.proactiveinvestors.com/companies/news/151575/carnarvon-petroleum-and-partners-spud-roc-well-in-north-west-shelf-65801.html Carnarvon Petroleum (ASX:CVN) has reported that drilling of the Roc-1 well in permit WA-437-P in Australia's North West Shelf is underway as the operator Quadrant Energy spuds the well in a known oil reservoir.

Progress of the well will be closely watched following last year's discovery of a new oil province in the North West Shelf and the Phoenix South-1 oil well success in August 2014.

Roc will target the same Lower Keraudren reservoir in which oil was discovered in the 2014 Phoenix South-1 well by the same joint venture partners in an adjoining area of the wider Phoenix project. 

Now that Roc-1 has spudded, drilling is expected to take around 35 to 40 days to reach a Total Depth of 4,700 metres.

Equity interest holders (upon satisfaction of the farm in agreement terms) in WA-437-P are:

Carnarvon Petroleum - 20 percent

Quadrant Energy (Operator) - 40 percent

JX Nippon - 20 percent

Finder Exploration - 20 percent

Spudding of the well has been carried to US$70 million by JX Nippon and Quadrant – a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG).

There are grounds for optimism for Roc-1 well as it is a larger structure than Phoenix South residing in a shallower water depth and a shallower reservoir than Phoenix South. It is also up-dip to the Phoenix South structure.

Carnarvon and joint venture partners are targeting a best-case estimate of 42 million barrels of oil at Roc.

This would represent a substantial portion of the larger Phoenix resource, estimated in a best-case scenario to total 104 million barrels of oil over only 5% of acreage held by Carnarvon.

Success at Roc-1 would see the well suspended then re-entry for evaluation and further testing (including flow testing) and coring in the third quarter of 2016. 

 

Analysis

Roc's high prospectivity as a target well for a substantial proportion of the oil in a known reservoir bodes well for the current drilling campaign.

Carnarvon is in an enviable financial position with circa $103 million in cash plus up to US$32 million in future cash flow from oil receipts and debt free. This is against a market capitalisation of $119 million. 

Roc-1 is well funded to US$70 million (gross) by Quadrant Energy and JX Nippon.

So results will be eagerly awaited as will further exploration of the greater Phoenix area in 2016.

The addition of Dr Peter Moore to the Board is timely given his experience in the North West Shelf particularly as a former head of exploration for Woodside Petroleum.

 


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China. ]]>
Wed, 25 Nov 2015 11:04:00 -0500 https://www.proactiveinvestors.com/companies/news/151575/carnarvon-petroleum-and-partners-spud-roc-well-in-north-west-shelf-65801.html
<![CDATA[News - Carnarvon Petroleum in place for Roc oil drilling in North West Shelf ]]> https://www.proactiveinvestors.com/companies/news/151574/carnarvon-petroleum-in-place-for-roc-oil-drilling-in-north-west-shelf-65751.html The drill rig at Carnarvon Petroleum’s (ASX:CVN) Roc-1 oil well in Australia’s North West Shelf region is in place and ready to begin a much anticipated program targeting a known reservoir.

The company confirmed today that the rig operator, Quadrant Energy, was ready to spud once the rig owner, Noble Corporation, received certification and approval for in-transit safety case modifications.

Spudding of the well has been carried to US$70 million by JX Nippon and Quadrant – a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG).

The exploration program is expected take about 35-40 days to a depth of 4.7 kilometres.


A promising prospect

Roc will target the same Lower Keraudren reservoir in which oil was discovered in the 2014 Phoenix South-1 well by the same joint venture partners in an adjoining area of the wider Phoenix project.

Well logging and sidewall coring is expected to take about 5-10 days in a success case.

If the initial drilling is successful, the plan is to re-enter the Roc-1 well bore in Q3, 2016 for comprehensive testing (including flow testing) and coring.

Carnarvon is targeting a best-case estimate of 42 million barrels of oil at Roc.

This would represent a substantial portion of the larger Phoenix resource, estimated in a best-case scenario to total 104 million barrels of oil over only 5% of acreage held by Carnarvon.

About 45% of this acreage is expected to be explored using 3D data techniques before the end of the calendar year. This program is supported by $52 million in investment commitments and is aimed at identifying new targets for drilling over 2016 and 2017.


Analysis

Carnarvon’s readiness at Rock represents the encouraging culmination of a sustained and systematic effort to develop a priority target within its Phoenix offshore project portfolio.

This bodes well for the broader project’s further development, especially in light of Roc’s high prospectivity as a target well for a substantial proportion of the oil in a known reservoir.

Investor support for the latest progress at Roc has been illustrated by a 20% improvement for Carnarvon stock since the start of last month to A$0.12.

The company currently enjoys a market capitalisation of, A$119 million and a strong financial position with no debt and cash of $103.2 million as of the end of September.

Carnarvon also boasts up to US$32 million in future cash flow from oil receipts.

Importantly, Roc-1 is well funded to US$70 million (gross) by Quadrant Energy and JX Nippon.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 23 Nov 2015 14:17:00 -0500 https://www.proactiveinvestors.com/companies/news/151574/carnarvon-petroleum-in-place-for-roc-oil-drilling-in-north-west-shelf-65751.html
<![CDATA[News - Carnarvon Petroleum schedules imminent drilling at Roc-1 ]]> https://www.proactiveinvestors.com/companies/news/151573/carnarvon-petroleum-schedules-imminent-drilling-at-roc-1-65587.html Carnarvon Petroleum (ASX:CVN) has set a spud date next week for the Roc-1 oil well in Australia’s North West Shelf region as the company’s broader Phoenix offshore property demonstrates increasing potential.

With the drilling rig now received by joint venture partner Quadrant Energy, the highly anticipated exploration program is ready to begin around November 17, with drilling to take about 35-40 days to a depth of 4.7 kilometres.

Roc will target the same Lower Keraudren reservoir in which oil was discovered in the 2014 Phoenix South-1 well by the same joint venture partners in an adjoining area of the Phoenix project.

Well logging and sidewall coring is expected to take about 5-10 days in a success case.

If the initial drilling is successful, the plan is to re-enter the Roc-1 well bore in Q3, 2016 for comprehensive testing (including flow testing) and coring.

Carnarvon is targeting a best-case estimate of 42 million barrels of oil at Roc.

This would represent a substantial portion of the larger Phoenix resource, estimated in a best-case scenario to total 104 million barrels of oil over only 5% of acreage held by Carnarvon.

About 45% of this acreage is expected to be explored using 3D data techniques before the end of the calendar year. This program is supported by $52 million in investment commitments and is aimed at identifying new targets for drilling over 2016 and 2017.

As a starting point to this wider development plan, Roc represents a promising prospect with minimal investor risk attached.

Importantly, spudding of the well has been carried to US$70 million by JX Nippon and Quadrant – a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG).


Phoenix progress

New traction at Roc represents only part of the broader development work taking shape at the Phoenix project.

The nearby Phoenix South-1 well, drilled in 2014, was the first well to be drilled in the Bedout Sub Basin for almost 30 years and was only the eighth well in the basin.

The well was drilled to a total depth of around 4.6 kilometres and discovered oil across an overall sand-rich package between 4.2 kilometres and total depth. Six samples of high-quality 46-48 degree API oil were recovered from the well.

This well is significant because it opened up the prospectivity of an entirely new hydrocarbon province in Australia.

Equally importantly, it demonstrates that there is a new play concept in Carnarvon’s area of focus: the North West Shelf.

During the past quarter, new prospect identification in the greater Phoenix area continued with substantial completion of a new seismic acquisition program covering the entire Phoenix acreage.

This data will provide the company with important new information next year that will be used for drilling activities in 2016 and beyond.


Analysis

Tighter scheduling for spudding at Roc adds clarity to Carnarvon’s development plans at the site and demonstrates the systematic efficiency of the company’s development effort in the greater Phoenix area.

Investor support for the latest progress at Roc has been illustrated by a 15% improvement for Carnarvon stock since the start of last month to A$0.115.

The company currently enjoys a market capitalisation of, A$114 million and a strong financial position with no debt and cash of $103.2 million as of the end of September.

Carnarvon also boasts up to US$32 million in future cash flow from oil receipts.

Importantly, Roc-1 is well funded to US$70 million (gross) by Quadrant Energy and JX Nippon.

Rollout of development plans at Phoenix have been strategically timed with the downturn in the oil sector, with crude prices now fluctuating in a range reflecting less than half the value of prices in recent years. 

Carnarvon’s strategy for optimising this opportunity has included a focused business model with an in-house technical team solely focused on the North West Shelf.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 13 Nov 2015 12:00:00 -0500 https://www.proactiveinvestors.com/companies/news/151573/carnarvon-petroleum-schedules-imminent-drilling-at-roc-1-65587.html
<![CDATA[News - Carnarvon Petroleum firms drilling timeline as expectancy builds ]]> https://www.proactiveinvestors.com/companies/news/151572/carnarvon-petroleum-firms-drilling-timeline-as-expectancy-builds-64728.html Carnarvon Petroleum (ASX:CVN) has tightened its start date for the highly anticipated spudding of the Roc-1 oil well in Australia’s North West Shelf region as a plan to capitalise on a bruised energy sector come into focus.

The latest developments at the drill site – which is part of the broader Phoenix project – include mobilisation of the drill rig to the region. The rig is expected to begin work at Roc-1 in early to mid-November, targeting a best-case estimate of 42 million barrels of oil.

This would represent a substantial portion of the larger Phoenix resource, estimated in a best-case scenario to total 104 million barrels of oil over only 5% of acreage held by Carnarvon.

About 45% of this acreage is expected to be explored using 3D data techniques before the end of the calendar year. This program is supported by $52 million in investment commitments and is aimed at identifying new targets for drilling over 2016 and 2017.

As a starting point to this wider development plan, Roc-1 is an exciting prospect with minimal investor risk attached.

Importantly, spudding of the well has been carried to US$70 million by JX Nippon  and Quadrant Energy – a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG).


The right time to build a company

Rollout of development plans at Phoenix have been strategically timed with the downturn in the oil sector, with crude prices now fluctuating in a range reflecting less than half the value of prices in recent years. 

Carnarvon’s strategy for optimising this opportunity has included a focused business model with an in-house technical team solely focused on the North West Shelf.

This effort was highlighted earlier this year by the appointment of former Woodside Petroleum (ASX:WPL) senior executive Dr Peter Moore as a non-executive director. Moore led Woodside’s worldwide exploration and has extensive experience in exploration and production in Australia.

Carnarvon advantages in capturing growth opportunities during an oil lull are best illustrated in its A$100 of cash holdings and assets valued at about $120 million.

This increasingly strategic cash position is set to deliver an important competitive edge as it is believed recent oil industry shocks still remain to be fully realised.


Analysis

Carnarvon is in a strong financial position as the Roc-1 campaign gets underway, being debt free with $100 million in cash and developing plans for a future income stream.

Costs for the upcoming drilling at Roc-1 are free carried to US$70 million, resulting in minimum risk to investors.

With uncommon investment and development options for a junior operator in the struggling oil and gas space, Carnarvon is in a unique position realise rapid growth by exploiting market distress for operational expansion and value accretion.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 29 Sep 2015 10:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151572/carnarvon-petroleum-firms-drilling-timeline-as-expectancy-builds-64728.html
<![CDATA[News - Carnarvon Petroleum has November spud date with high impact Roc-1 oil well ]]> https://www.proactiveinvestors.com/companies/news/151571/carnarvon-petroleum-has-november-spud-date-with-high-impact-roc-1-oil-well-64502.html Carnarvon Petroleum (ASX:CVN) expects to spud in early to mid-November the much awaited Roc-1 well that targets 42 million barrels of oil in the North West Shelf off Western Australia.

Drilling will be carried by Quadrant Energy – a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG) – and JX Nippon to US$70 million.

Quadrant, the operator of WA-437-P, contracted the Noble Tom Prosser jack-up drilling rig to drill the Roc-1 well.

The newbuild rig sailed from Singapore on 11th September and is expected to arrive at Dampier between 19th and 21st September.

It will drill a well for Vermillion Energy at the Wandoo oil field before moving to drill the Roc-1 well.

Drilling of the Roc-1 well is estimated to take around 50 to 60 days to complete.


Other Activity

Carnarvon and its partners are also continuing to assess the Phoenix South-1 oil discovery that was made in 2014, which opened up the prospectivity of an entirely new hydrocarbon province in Australia and identified a new play concept in the North West Shelf.

This has best estimate resources of 19 million barrels of oil.

Additional data is being acquired and the total 3D seismic set is expected to cover about 45% of Carnarvon’s acreage holding by the end of this year.

Planning is also underway for the drilling of additional appraisal wells in late 2016 to follow the success of Roc-1.


Carnarvon Petroleum presenting in Sydney and Melbourne

REGISTER TODAY by clicking on the links below:

Melbourne Investor Luncheon, Tuesday 22nd September.
   
Sydney Investor Luncheon, Wednesday 23rd September.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 15 Sep 2015 14:30:00 -0400 https://www.proactiveinvestors.com/companies/news/151571/carnarvon-petroleum-has-november-spud-date-with-high-impact-roc-1-oil-well-64502.html
<![CDATA[News - Carnarvon Petroleum brings North West Shelf oil to Proactive's Luncheons ]]> https://www.proactiveinvestors.com/companies/news/151570/carnarvon-petroleum-brings-north-west-shelf-oil-to-proactives-luncheons-64419.html Carnarvon Petroleum (ASX:CVN) is cashed up with $120 million in liquid assets to support its technically driven approach to oil and gas discoveries in the North West Shelf off Western Australia.

Excitement is building as it draws closer towards drilling in the fourth quarter the high impact Roc-1 well that targets a best case estimated of 42 million barrels of oil.

Notably, this will be carried by Quadrant Energy – a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG) – and JX Nippon to US$70 million.

Planning is also underway for the drilling of additional appraisal wells in late 2016 to follow the success of Roc-1.

Adrian Cook, managing director, will present at Proactive's Sydney, Melbourne Investor Luncheons in September.

REGISTER TODAY by clicking on the links below:

Melbourne Investor Luncheon, Tuesday 22nd September.
   
Sydney Investor Luncheon, Wednesday 23rd September.


Phoenix Oil Discovery

Work is also continuing on assessing the Phoenix South-1 oil discovery that was made in 2014, which opened up the prospectivity of an entirely new hydrocarbon province in Australia and identified a new play concept in the North West Shelf.

This has best estimate resources of 19 million barrels of oil.

Additional data is being acquired and the total 3D seismic set is expected to cover about 45% of Carnarvon’s acreage holding by the end of this year.


Cerberus Blocks

In June, the company identified the Belfon (Upper Permian) and Honeybadger (Early Triassic) prospects at its wholly-owned Cerberus Blocks in the Carnarvon Basin that are estimated to contain significant volumes of recoverable oil.

Honeybadger and Belfon offer low cost drilling in shallow water with shallow depth reservoir targets, providing Carnarvon with significant value for a modest investment.

Besides requiring lower cost jack-up drilling rigs, the reservoirs are also located between 1,000 to 3,000 metres subsea, with the time required to drill down to total depth to test these targets estimated to be between ten to fifteen days.

These factors result in the independently estimated total cost to drill each prospect from as low as US$10 million per well in the current environment.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 15 Sep 2015 08:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151570/carnarvon-petroleum-brings-north-west-shelf-oil-to-proactives-luncheons-64419.html
<![CDATA[News - Carnarvon Petroleum cashed up for North West Shelf exploration ]]> https://www.proactiveinvestors.com/companies/news/151569/carnarvon-petroleum-cashed-up-for-north-west-shelf-exploration-63665.html Carnarvon Petroleum (ASX:CVN) has completed its transition into a technically driven oil and gas exploration and production company focused on the North West Shelf.

This is highlighted by its recent appointment of former Woodside Petroleum (ASX:WPL) senior executive Dr Peter Moore as a non-executive director.

Carnarvon has a market cap. circa $109 million, and with cash of A$97.3 million and potential royalty payments of up to US$32 million, it is trading under cash-backing. It has no debt.

Location of the Roc-1 exploration well, which will be funded by Quadrant Energy and JX Nippon to US$70 million, has been finalised with drilling expected to start in the fourth quarter of 2015.

A successful Roc-1 well will be suspended to allow for re-entry within six to twelve months to complete more extensive well sampling, including the cutting of whole cores, and to flow test the well.

Planning is also underway for the drilling of additional appraisal wells in late 2016 to follow the success of Roc-1.

The joint venture’s plans have received support from the Government with the granting of a two year extension to August 2017 to complete the extensive work programs currently underway.

Two outstanding oil prospects have been identified in the company’s Cerberus acreage while seismic acquisition across the Phoenix permits is ongoing with completion on schedule for the third quarter of 2015.

Carnarvon has also started early planning for further exploration drilling in 2017 and beyond.

Adrian Cook, managing director, said in the quarterly:

“With the sale of the company’s Thai interests behind us, the focus of the entire board and management team is on capitalising on one or more of the high impact opportunities that have been identified in the North West Shelf by the new ventures team.”


Greater Phoenix Area (Carnarvon 20%)

The Phoenix South-1 well, drilled in 2014, was the first well to be drilled in the Bedout Sub Basin for almost 30 years and was only the eighth well in the basin.

Phoenix South-1 was drilled to a total depth (“TD”) of around 4,595 metres and discovered oil across an overall sand rich package between 4,160 metres and TD.

Six samples of high quality 46 to 48 degree API oil were recovered from the well.

This well is significant because it opened up the prospectivity of an entirely new hydrocarbon province in Australia and identified a new play concept in the North West Shelf.

Ongoing test data results from rock and oil samples collected from the Phoenix South-1 well continue to provide important new data to update exploration models, volume estimates and assumptions in the basin.

Whilst more technical work has to be undertaken, including the interpretation of seismic currently being acquired, further exploration could lead to more discoveries in the area.

Phoenix South-1 has Best Estimate recoverable oil of 19 million barrels while the Phoenix-1 well drilled in BP has also been assessed as an oil discovery that contains a best estimate of recoverable oil of 9 million barrels.


Exploration – Phoenix 3D Area

Within the Phoenix 3D area there are a number of prospects to follow up the Phoenix and Phoenix South oil discoveries.

The Roc prospect is interpreted to contain a greater volume of recoverable oil than Phoenix South, at a shallower depth, with a best case estimate of 42 million barrels.

With a probability of geological success of 42%, this in combination with the contingent resource estimates make this prospect one of the most attractive exploration prospects in the North West Shelf at this point in time.

The Roc-1 well is currently scheduled is to commence drilling in the fourth quarter of calendar 2015.

Carnarvon’s share of the well will be funded to US$70 million (gross cost of well) by Quadrant Energy and JX Nippon.

Roc-1 is in shallower water and has a shallower reservoir target compared with the Phoenix South-1 well and is scheduled to be drilled by a jack-up rig and is expected to have lower costs.

In addition to the Roc prospect; the Bewdy, Bottler and Phoenix 2 Up-dip structures, which also all lie within the Phoenix 3D, provide early follow up opportunity in the case of success in the Roc-1 well.

These four prospects have a total best estimate of 73 million barrels of recoverable oil.


Exploration – Greater Phoenix Area

The Phoenix 3D area only covers an area of approximately 1,100 square kilometres or around 5% of a total permit holding of approximately 22,000 square kilometres.

Phoenix South-1 has proved there is a working petroleum system in this region that has given the Joint Venture confidence to commence further seismic activities to identify additional leads and prospects in the Greater Phoenix Area.

Following success at Phoenix South, the Joint Venture has licenced the Zeester 3D seismic survey that covers the Northern parts of WA-436-P and WA-435-P.

This covers an area of 3,854 square kilometres and incorporates the very large Bandy lead amongst others.

Interpretation of this seismic survey is underway and is expected to add to Carnarvon’s lead and prospect inventory.

The Joint Venture has also committed to the Capreolus 3D seismic acquisition and licensing.

This survey will result in an additional 5,100 square kilometres of 3D seismic coverage in the basin and is expected to reveal a number of new prospects and enable greater delineation of numerous leads that lie to the west of Phoenix South as identified on existing 2D data.

Acquisition is on schedule and is currently around 70% complete.


Cerberus Blocks (Carnarvon 100%)

The three permits that make up the Cerberus Blocks are situated on the eastern flank of one of Australia’s most prolific oil producing basins, the Carnarvon basin, and they cover a total area of around 3,200 square kilometres.

As part of the work program across these permits, Carnarvon has re-interpreted modern reprocessed 3D seismic data and has identified a number of new material oil prospects.

These prospects are associated with Lower Triassic source rocks that have been identified in nearby wells through recently completed geochemistry, petrophysics and biostratigraphy studies.

The Triassic source rocks are analogous to proven oil-prone source rocks at Phoenix and the Perth Basin. These Triassic sourced targets are in addition to the more traditional oil plays across the area, which are primarily sourced from the Jurassic and Cretaceous aged sediments like the Stag, Wandoo and Harriet oil fields nearby.

In particular the Belfon (Upper Permian) and Honeybadger (Early Triassic) prospects are estimated to contain significant volumes of recoverable oil.

Detailed analysis is ongoing to refine these prospect volume estimates and further updates are planned to provide shareholders with this information in due course.

Five Jurassic prospects exist (1,000-1,500 metre target depths) with a further set of Cretaceous shallow (circa 500 metres target depth) oil prospects which could be large in the context of North West Shelf oil prospects and are the focus of the current stage of geoscience studies.

The investment case in this area is particularly attractive because of the combination of very sizable targets and low exploration costs.

The shallow water depths (approximately 50 metres) and shallow oil target depths (500 metres to 3,000 metres) means drilling and development costs are expected to be low relative to normal expectations in the North West Shelf.

Multiple development options are available due to shallow depths, proximity to shore and existing production infrastructure.

Carnarvon is looking to progress its exploration plans with a partner with the intention of drilling one or more prospects while retaining a significant equity interest in the project.


Analysis

Carnarvon has a market cap. circa $109 million, and with cash of A$97.3 million and potential royalty payments of up to US$32 million, it is trading under cash-backing. It has no debt.

Newly appointed non-executive director Dr Peter Moore also brings his involvement in the giant Pluto and Calliance gas discoveries in the region from his time as Woodside Petroleum executive vice president exploration into play.

Besides the Roc-1 well funded by Quadrant and JX Nippon, the company also has oil prospects in its wholly-owned Cerberus Blocks and other exploration opportunities.

These provide a strong pipeline of news flow for Carnarvon.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 27 Jul 2015 11:30:00 -0400 https://www.proactiveinvestors.com/companies/news/151569/carnarvon-petroleum-cashed-up-for-north-west-shelf-exploration-63665.html
<![CDATA[News - Carnarvon Petroleum readies for Roc-1 well, casts eye for new deals ]]> https://www.proactiveinvestors.com/companies/news/151568/carnarvon-petroleum-readies-for-roc-1-well-casts-eye-for-new-deals-63316.html Carnarvon Petroleum (ASX:CVN) is advancing its existing projects including the upcoming Roc-1 well later this year and its wholly-owned Cerberus Blocks in the Carnarvon Basin.

The company is also actively looking for new opportunities that have the potential to add significant upside to its business.

Carnarvon is well-funded and is currently trading at a discount to cash backing and royalty payments.

Adrian Cook, managing director, said:

“Despite challenging industry conditions, we’re continuing to advance our existing projects and we’re actively looking for new opportunities that have the potential for us to add significant upside to our business.

“One example of this may arise in the Government bid round for offshore oil and gas exploration permits, with bids required in the fourth quarter of this calendar year.”

“Behind the scenes work is well and truly underway preparing for the drilling of the Roc-1 well later this year.

“The joint venture partners have been meeting regularly to review the drill plans and budgets and of course the technical material from the reprocessed Phoenix 3D and other data upon which these drill decisions are being made. And we remain encouraged by what we are seeing and with the progress being made.

“As you would have seen from our recent Cerberus update we have also been working on the technical aspects of this acreage over the last year.

“This is another very interesting area of the North West Shelf and now we’ve advanced the technical work we’d definitely like to see our key prospects drilled and tested.

“Ideally we’ll secure a partner to join us in this project but we know we need to be patient in this market as most of the large company exploration budgets have been heavily curtailed for the moment.”

This month, the company appointed its commercial manager Thomson Naude as its chief financial officer.

Its staff own more than 1% of the company through purchases on market, ensuring they are aligned with shareholders.


Roc-1

Quadrant Energy – a consortium between Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG) consortium (Quadrant Energy) that acquired Apache Corporation’s (NYSE:APA) Australian assets – has reaffirm intentions to drill the Roc-1 later this year.

Roc-1 well targets P50 Contingent Resources of 42 million barrels of oil and follows on the successful Phoenix South-1 well in WA-435-P that was confirmed as a light oil discovery.

Quadrant and JX Nippon will fund drilling and testing costs within WA-437-P to US$70 million (gross cost). The current estimate to drill the Roc-1 well is around US$45 million.

Carnarvon will update on timing of the rig and spud date for the Roc-1 well as it gets closer to a firm spud date.

The recent independent resource assessment of the Phoenix & Phoenix South discoveries came to best estimate gross contingent resource of 31 million barrels of oil.


Cerberus Blocks

In June, the company identified the Belfon (Upper Permian) and Honeybadger (Early Triassic) prospects at its wholly-owned Cerberus Blocks in the Carnarvon Basin that are estimated to contain significant volumes of recoverable oil.

Honeybadger and Belfon offer low cost drilling in shallow water with shallow depth reservoir targets, providing Carnarvon with significant value for a modest investment.

Besides requiring lower cost jack-up drilling rigs, the reservoirs are also located between 1,000 to 3,000 metres subsea, with the time required to drill down to total depth to test these targets estimated to be between ten to fifteen days.

These factors result in the independently estimated total cost to drill each prospect from as low as US$10 million per well in the current environment.

Meaningful oil volumes with multiple follow on prospects are also present at the EP-490, EP-491 and TP/27 exploration blocks.

Notably, work carried out by the company has resulted in the discovery of the same early Triassic systems that are present at the Phoenix oil discovery.

The Cerberus Blocks are located in an iconic hydrocarbon region and have the potential to host a number of similar sized oil fields as in the neighbouring blocks.

Nearby fields include the Wandoo Oilfield that hosts 250 million barrels of oil in place; the Stag Oilfield with an estimated 125 million barrels of oil in place; the Barrow Island oil field that has produced over 300 million barrels of oil since its discovery in 1964; and the Harriet oil and gas fields that have produced over 75 million barrels of oil and almost 400 billion cubic feet of gas.   


Analysis

There is a pipeline of news ahead for Carnarvon Petroleum with upcoming drilling of Roc-1 and potential to acquire new offshore oil and gas blocks in Australia.

Its Cerberus Blocks also offers two prospects with significant oil potential at relatively low costs that do not require further technical work.

While securing a partner will take time, a successful replication of the Phoenix success at Cerberus will add substantial value.

The company is well positioned with a range of quality projects, cash as at March quarter end of $101 million in cash, up to US$32 million in royalty payments, zero debt and the Roc-1 well funded to US$70 million by Quadrant and JX Nippon.

Carnarvon also benefits from a strengthened board and management team as well as a clear consensus on the strategy and plans needed to grow its business.

It is currently trading at a discount to cash backing and royalty payments with no value given to assets and volumes.

Perth-based broker Argonaut Securities recently valued Carnarvon at $0.19. Shares in CVN are currently trading at $0.11.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 07 Jul 2015 09:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151568/carnarvon-petroleum-readies-for-roc-1-well-casts-eye-for-new-deals-63316.html
<![CDATA[News - Carnarvon Petroleum has major oil potential in the Cerberus Blocks ]]> https://www.proactiveinvestors.com/companies/news/151567/carnarvon-petroleum-has-major-oil-potential-in-the-cerberus-blocks-63074.html Carnarvon Petroleum (ASX:CVN) has identified two potentially large oil prospects at its wholly-owned Cerberus Blocks in the Carnarvon Basin offshore Western Australia.

Meaningful oil volumes with multiple follow on prospects are also present at the EP-490, EP-491 and TP/27 exploration blocks.

Notably, work carried out by the company has resulted in the discovery of the same early Triassic systems that are present at the Phoenix oil discovery.

The Cerberus Blocks are located in an iconic hydrocarbon region and have the potential to host a number of similar sized oil fields as in the neighbouring blocks.

Nearby fields include the Wandoo Oilfield that hosts 250 million barrels of oil in place; the Stag Oilfield with an estimated 125 million barrels of oil in place; the Barrow Island oil field that has produced over 300 million barrels of oil since its discovery in 1964; and the Harriet oil and gas fields that have produced over 75 million barrels of oil and almost 400 billion cubic feet of gas.   

The blocks offer low cost drilling in shallow water with shallow depth reservoir targets, providing Carnarvon with significant value for a modest investment.

“Last May, we secured the Cerberus blocks based on a number of geological concepts, including those we saw in Phoenix and thereafter proved successful in the Phoenix South-1 oil discovery announced in August last year,” managing director Adrian Cook said.

“I am particularly pleased with the technical work that has gone into the Cerberus project in the year since award.

“This project represents a very attractive value proposition for a modest investment, wherein large oil prospects identified on quality 3D seismic data, situated in a prolific hydrocarbon region, can be tested for a relatively low cost.

“As our technical work draws to a close we have commenced the next phase of work in these blocks, that in the short term, will comprise obtaining the necessary approvals to undertake drilling and other exploration activities.”



Proven hydrocarbon province

Carnarvon’s intentions are to expand its exploration portfolio in the North West Shelf beyond the successful Phoenix blocks, where the Phoenix South-1 oil discovery last year proved a new play type.

The Cerberus blocks are within the Carnarvon basin, Australia’s premier hydrocarbon province, and resides within the North West Shelf.

Carnarvon was originally attracted to the Cerberus blocks given the areas proven source rocks, effective reservoir and seal combinations and on-trend discoveries providing the potential for significant discoveries in this acreage.

It has s extensive knowledge of the Carnarvon Basin, including knowledge of the early Triassic petroleum systems discovered in the Bedout Sub basin through the Phoenix South-1 oil discovery in 2014, and has utilised this knowledge to identify two outstanding new oil prospects within the Cerberus Blocks.

These prospects are expected to be the first of many in the Cerberus Blocks.

The Belfon (Upper Permian) and Honeybadger (Early Triassic) prospects are estimated to contain significant volumes of recoverable oil.

Detailed analysis is ongoing to refine these prospect volume estimates and further updates are planned to provide shareholders with this information in due course.

The Honeybadger prospect is defined as a middle slope turbidite channel complex, expected to be filled with high net-to-gross sands.

Importantly there is a stratigraphic and a structural element to this prospect, with a high chance of stacked pay.

The Belfon prospect is defined as a tilted fault block structure, with Permian Kennedy reservoir sealed by the regional overlying Locker shale.

Five Jurassic prospects exist at target depths of between 1,000 metres and 1,500 metres with a further set of Cretaceous shallow (circa 500 metres target depth) oil prospects which could be large in the context of North West Shelf oil prospects and are the focus of the current stage of geoscience studies.


Low drill cost

The two primary drilling targets, Honeybadger and Belfon, lie in 25 to 30 meters water depth, around 100 kilometres from the major port of Dampier, the centre of logistics support for oil and gas operations on the Northern Carnarvon Basin.

This water depth is ideal for the employment of cheaper jack-up drilling rigs.

The reservoir depths are between 1,000 to 3,000 metres subsea, with the time required to drill down to total depth to test these targets estimated to be between ten to fifteen days.

These factors result in the independently estimated total cost to drill each prospect from as low as US$10 million per well in the current environment.

Carnarvon acquired the Cerberus exploration blocks in May 2014 for a work program including reprocessing of 3D seismic, mapping and interpretation during the first three years.

Given the technical work that Carnarvon is expending in the area, the company expects to comfortably exceed the work program.

Importantly the first drilling obligations in the work program to the government (being two wells) occur within permit year 4, which is outside the minimum obligation for these types of exploration blocks, and so is contingent rather than a commitment.

Carnarvon therefore has until May 2017 to commit to drilling these wells.


Cerberus Blocks

Carnarvon was awarded the three Cerberus exploration blocks in May 2014, with a nominal work program covering the first three years.

Since permit award, the Carnarvon geoscience team has significantly de-risked the area through its technical work, including:

- Licensing and interpretation of the reprocessed 3D Monodon mega-merge survey to ensure the prospects being assessed are on the best possible 3D data;
- Detailed analysis of the only 16 Early Triassic and Upper Permian wells that previously drilled in and around the Cerberus blocks to improve data accuracy and understanding. The most recent of these wells was in the 1980’s much like the Phoenix-1 well was;
- Renewed petro-physical analysis of 30+ wells in the Carnarvon Basin for enhanced understanding of the Early and Upper Permian reservoirs in the blocks plus Jurassic and Cretaceous reservoirs; and
- Drill core review, fluid inclusion studies and biostratigraphy and source rock analysis to fully understand the Early Triassic source rocks and migration potential into prospects.

Some of the geoscience work has addressed the recent implications that the Early Triassic Phoenix South-1 oil discovery has on the Cerberus blocks.

It has become apparent through integrating the results at Phoenix South-1 and then reviewing the whole of the Early Triassic on the North West Shelf of Australia that the same petroleum system extends into the Cerberus blocks within this newly recognised Early Triassic petroleum system.

There are now several Early Triassic and Upper Permian prospects with additional multiple Jurassic and Cretaceous prospects identified at shallow target depths which could be drilled using jack-up rigs.


Analysis

Carnarvon Petroleum has identified significant oil potential of the Cerberus Blocks, which are located close to major oil fields such as Wandoo, Stag, Barrow Island and Harriet.

That Honeybadger and Belfon prospects are located in shallow water with reservoir depths between 1,000 to 3,000 metres is notable, as these offer potential for relatively low cost drilling with substantial rewards.

These also do not require further technical work.

In addition, while the company is targeting oil, should the prospects be successful for gas, the proximity to nearby infrastructure will come into play.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 23 Jun 2015 11:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151567/carnarvon-petroleum-has-major-oil-potential-in-the-cerberus-blocks-63074.html
<![CDATA[News - Carnarvon Petroleum appoints former Woodside executive as director ]]> https://www.proactiveinvestors.com/companies/news/151566/carnarvon-petroleum-appoints-former-woodside-executive-as-director-62997.html Carnarvon Petroleum (ASX:CVN) has appointed former Woodside Petroleum (ASX:WPL) senior executive Dr Peter Moore as a non-executive director of the company.

With his involvement in the giant Pluto and Calliance gas discoveries offshore Western Australia, Moore’s appointment reinforces the company’s strategic focus in the North West Shelf.

Moore previously led Woodside’s worldwide exploration efforts as its executive vice president exploration.

In this capacity, he was a member of Woodside's Executive Committee and Opportunities Management Committee and was the Head of the Geoscience function across all of the company.

He is currently the Professor and Executive Director of Strategic Engagement at Curtin University’s
Business School, reflecting his broad business experience.

Earlier this month, Carnarvon advised that partner Quadrant Energy was on track to spud the Roc-1 exploration well in the fourth quarter of 2015.

Roc-1 in WA-437-P targets P50 Contingent Resources of 42 million barrels of oil and follows on the successful Phoenix South-1 well in WA-435-P that was confirmed as a light oil discovery.

Quadrant and JX Nippon will fund drilling and testing costs within WA-437-P to US$70 million (gross cost). The current estimate to drill the Roc-1 well is around US$45 million.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 19 Jun 2015 07:00:00 -0400 https://www.proactiveinvestors.com/companies/news/151566/carnarvon-petroleum-appoints-former-woodside-executive-as-director-62997.html
<![CDATA[News - Carnarvon Petroleum: Roc-1 on track to spud in 4Q2015 ]]> https://www.proactiveinvestors.com/companies/news/151565/carnarvon-petroleum-roc-1-on-track-to-spud-in-4q2015-62803.html Carnarvon Petroleum (ASX:CVN) has advised that the Brookfield Asset Management (NYSE:BAM) and Macquarie Capital (ASX:MQG) consortium (Quadrant Energy) has reaffirm intentions to drill the Roc-1 well in the fourth quarter of 2015.

This follows Quadrant Energy completing the acquisition of Apache Corporation’s (NYSE:APA) Australian assets.

The Roc-1 well targets P50 Contingent Resources of 42 million barrels of oil and follows on the successful Phoenix South-1 well in WA-435-P that was confirmed as a light oil discovery.

Quadrant and JX Nippon will fund drilling and testing costs within WA-437-P to US$70 million (gross cost). The current estimate to drill the Roc-1 well is around US$45 million.

Any shortfall can be carried over into subsequent testing or drilling activities within the permit.   

It is anticipated a successful Roc-1 well will be suspended to allow for re-entry within six to twelve months to complete more extensive well sampling and to flow test the well.

This decision is based on factors pertaining to government approvals, cost and drilling processes.

Given the probability of success estimated for the Roc prospect, planning is also underway for the drilling of additional exploration and appraisal wells in late 2016.

These will likely be subject to a successful Roc-1 result, joint venture and government approvals and rig availability.

Given the extent of the work being undertaken the government recently agreed to extend the licence term until August 2017.

This is beneficial to the joint venture because no portion of the acreage has to be relinquished before this newly extended date.


Seismic plans

Two new multi-client seismic programs are being acquired over the four exploration permits that make up the Phoenix Blocks.

The multi-client (MC) 3D seismic project (Capreolus MC3D) is one of the largest single site surveys ever undertaken in Australian waters, and reflects the exploration interest within and around the Bedout Sub basin.

The joint venture will license approximately 5,100 square kilometres of the Capreolus MC3D and approximately 60% of this has now been acquired.

This data is expected to be processed and ready for interpretation early in 2016.

It will complement the 1,100 square kilometre Phoenix MC3D acquired in 2010/2011 and the 3,854 square kilometre Zeester MC3D acquired in 2011/2012.

Reprocessing of the Phoenix MC3D is also nearing completion.

New 2D seismic data is being acquired over the majority of the remaining approximately 12,000 square kilometres of the Phoenix area.

Acquisition of this data, Bilby MC2D, is approximately 45% complete.

Prospect generation is the key activity following seismic acquisition, processing (including reprocessing) and interpretation.

Given the timing of the different 2D and 3D surveys, it is anticipated that further prospect maps will become available at different times over the next 18 months.

Prospect mapping within the Zeester MC3D area is expected to be complete before the end of this year while prospect generation within the Phoenix MC3D area is anticipated to be complete by early 2016.

Mapping for the Bilby MC2D and Capreolus MC3D areas are not expected to be complete until mid to late 2016 or possibly early 2017.


Technical work

The Quadrant-led joint venture continues to work through post-well analysis of the Phoenix South-1 well and the surrounding wells in the permit.

This work addresses many geological aspects including reservoir development and quality, the type and potential source of the oils discovered and where it may occur further in the permit.

The amount of technical work being undertaken to evaluate a newly discovered hydrocarbon province necessitates a more thorough evaluation than for more established basins such as the Carnarvon and Dampier sub basins within the North West Shelf.

Two broad areas of study are currently being undertaken – those related to regional work around understanding this new hydrocarbon province and secondly those related to the reservoir characteristics with a view to understanding the potential development of the Phoenix South oil discovery and other prospective oil reservoirs in the province.

For the former, fluid inclusion studies are complete on all the previously drilled wells in the region which, when finalised around the middle of this year, will be incorporated into regional interpretation.

Along with petroleum system modelling and newly acquired seismic data, this will generate regional mapping and ultimately a portfolio of prospects across the Phoenix Blocks.

For the Phoenix South discovery, “special core analysis” (SCAL) is ongoing and expected to be complete by the end of calendar 2015.

This allows for better delineation of the flow characteristics and recovery from the reservoir rock.

This work will be integrated into static and dynamic computer models with a view to having a better handle on the range of possible recoverable oil by the end of this year.


Phoenix South-1 discovery

The discovery of oil in the Phoenix South-1 well in the WA-435-P exploration permit is the first step in unlocking a new hydrocarbon province on the North West Shelf of Western Australia; the first new oil play in the region for 20 years.

Phoenix South-1 is located approximately 180 kilometres north of Port Hedland WA in 133 metres of water.

At the time of the discovery the area was very lightly explored, with a total of 7 wells drilled on poor data and sparse seismic coverage over four permits covering more than 22,000 square kilometres.

The acreage was acquired in a gazettal round in 2009 by Carnarvon Petroleum and Finder Exploration, and both Apache Energy and JX Nippon farmed into the project in 2012, prior to drilling of the discovery well.

Phoenix South-1 was drilled from May to August 2014 and reached a total depth of 4,595 metres.

The sands within the entire objective reservoir section showed elevated gas readings and fluorescence, indicative of hydrocarbon presence, however initial data acquired while drilling was inconclusive regarding the fluid and rock properties.

Wireline formation testing indicated better than expected inferred permeability, but the critical breakthrough was recovering crude oil samples to surface.

A total of six light oil samples were recovered from three zones along with a significant number of sidewall rock samples from up to six different sand and shale intervals.

An independent report by DeGolyer and MacNaughton estimated a Contingent Resource of 31 million barrels for the Phoenix South-1 3D area.


Analysis

There is a strong pipeline of news flow ahead for Carnarvon Petroleum with new joint venture partner Quadrant Energy committing to the drilling of Roc-1 in the fourth quarter of 2015.

That planning is also underway for the drilling of additional exploration and appraisal wells in late 2016 further highlights the region’s potential as a new oil province.

Carnarvon is fully funded for further activity in the North West Shelf in 2015 with $102.2 million in cash as at 31st March 2015.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 09 Jun 2015 09:22:00 -0400 https://www.proactiveinvestors.com/companies/news/151565/carnarvon-petroleum-roc-1-on-track-to-spud-in-4q2015-62803.html
<![CDATA[News - Carnarvon Petroleum: 50mnbbl resource potential to be tested, trading at cash ]]> https://www.proactiveinvestors.com/companies/news/68068/carnarvon-petroleum-50mnbbl-resource-potential-to-be-tested-trading-at-cash-79323.html Carnarvon Petroleum (ASX:CVN) has received an Outperform and a Target Price $0.25 from Taylor Collison. The target is more than double the $0.115 last traded price.


The following is an extract from the report.


50mnbbl of resource potential to be tested, but trading at cash...


Significant option value on the table

D&M, a globally recognised O&G consultancy, estimate that there is between 48 and 23 2mnbbl of gross oil potential in the Phoenix 3D area.

With Carnarvon (CVN) trading at close to its cash backing of $108mn and a fully carried drilling catalyst in 2015 we view the risk - reward as highly attractive.

We retain our price objective of A$0.25ps and outperform rating.


Phoenix Sth commerciality takes another step forward

D&M estimate that the Phoenix - Phoenix Sth discoveries contain 31mnbbl of 2C resource, while more work is clearly required this does place them in what we consider the commercial range.

This view is based on Apache’s previous development of the Balnaves field (17.0mnbbl) and Coniston field tie back (15.7mnbbl).


Unlocking the sub-bedout...

CVN has interests in over 28,000km2 of gross acreage of which only 4% is covered by interpreted 3D seismic. The basin unlike its famous southern neighbour has had less than 15wells drilled into it.

Historically, oil discoveries seldom occur in isolation and it is this view that helps underwrite our positive investment thesis.


...and new 3D likely to add to the potential

CVN and their JV partners have now licensed an additional 9,000km2 of seismic.

The Zeester seismic (3,900km2) is currently being analysed and we would hope to see some results in 3Q15 with a particular focus on the Bandy prospect (JV partner, Finder, have estimated prospective mean oil - in - place of 750mnbbl from stacked targets).


Apache conclusion could be close

The sale of Apache’s LNG interests to Woodside has now been closed and the odds of a conclusion to the sale of their remaining Australian interests have shortened considerably.

The press has speculated that Macquarie/Brookfield are favourites to secure the assets and most importantly will seek to retain the management team; a team which has forged a track record of delivering on modest and large developments in a timely and cost effective fashion.


...but Roc drilling pushed to 4Q15

D&M have estimated Roc’s potential at between 12-133mnbbl (gross) and placed a 42% chance of success on the prospect.

With the well in ~100m water and relatively shallow (3,500m) Roc is a very large catalyst which could be brought into production expeditiously if successful.

We understand that the Noble Tom Prosser has been contracted for the well.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 15 Apr 2015 07:30:00 -0400 https://www.proactiveinvestors.com/companies/news/68068/carnarvon-petroleum-50mnbbl-resource-potential-to-be-tested-trading-at-cash-79323.html
<![CDATA[News - Carnarvon Petroleum receives increased Price Target from Euroz ]]> https://www.proactiveinvestors.com/companies/news/68031/carnarvon-petroleum-receives-increased-price-target-from-euroz-79281.html Carnarvon Petroleum (ASX:CVN) has received a "Speculative Buy" from Euroz Securities Ltd, with a share price target of $0.29 per share by 30 June 2015.


The following is an extract from the report.


INVESTMENT CASE:

A 3rd party independent resource assessment has been completed on CVN’s Phoenix area in the North West.

Positively, volumes appear sufficient to justify a dual development scenario across the locations of Phoenix-1 and Phoenix-South.

Moreover the Roc -1 prospect remains the jewel in CVN’s crown, the volumetric oil estimates range 12 to 133mmbbls at a geological chance success of 42%.

There are very few (if any) ASX listed peers that provide risk protected exposure (US$100m cash and a $70m free carry) to such sizeable volumetrics and upside potential.

Buy, our Valuation and Price Target is $0.29/sh (prev $0.28/sh).


KEY POINTS:

Gross Volumetric Assessment (CVN 20%) -

- Phoenix-1 = 9mmbbls 2C (to a High Case of 28mmbbls 3C).
- Phoenix South-1 = 19mmbbls 2C (to a High Case of 56mmbbls 3C).
- Ro c-1 = 42mmbbls Best Prospective estimate (to a High Case Prospective estimate of 133mmbbls).

Valuation and Price Target -

- Our Valuation and Price Target has increased to $0.29/sh (prev. $0.28/sh)
reflecting the refined volumetric estimates.


ANALYSIS:

Valuation - CVN remains undervalued trading at or near cash backing of $0.105/sh, little to no value is being attributed to the Company’s asset suite inclusive of the material oil volumes defined today.

Phoenix-1 and Phoenix South - Critically and positively the combined 2C volumes at Phoenix-1 and Phoenix South (28mmbbls) appear adequate to justify a dual development scenario.

Moreover we highlight that only 1 well has been drilled into the 46km2 Phoenix
South structure, additional intersects (wells) will likely increase the low and mid case volumes towards the 56mmbbl 3C estimate.

Our pragmatic possibly conservative net valuation of Phoenix 1 and Phoenix South (utilising an in-ground value of $15/bbl) equates to $84m (or $0.08/sh eqv).

We have heavily risked the upside volumetrics (56mmblbls) at 20%, the resulting valuation is $50m net.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 14 Apr 2015 08:30:00 -0400 https://www.proactiveinvestors.com/companies/news/68031/carnarvon-petroleum-receives-increased-price-target-from-euroz-79281.html
<![CDATA[News - Carnarvon Petroleum: Speculative Buy from Hartleys with $0.18 price target ]]> https://www.proactiveinvestors.com/companies/news/67988/carnarvon-petroleum-speculative-buy-from-hartleys-with-018-price-target-79234.html Carnarvon Petroleum (ASX:CVN) remains the subject of a Speculative Buy recommendation from Perth broker Hartleys with a 12-month price target of $0.18.

At the time the report was issued Carnarvon was trading at $0.115.

The broker believes the Phoenix South-1 oil discovery bodes well for further exploration success offshore Western Australia.


The numbers: Phoenix South and beyond

While the resource numbers contained within the Independent Resource Assessment may have been below market expectations, there remains a lot to like about the Carnarvon Petroleum (CVN) story.

With an estimated A$98m (9.5cps) cash at bank CVN has a war-chest with which to add to its Australian acreage position (early stage exploration at low cost) as well as providing downside protection for the stock.

Investors also get to participate in the Roc-1 well which is expected to be drilled in 4Q CY15 for which CVN is carried to a cap of US$70m.

We have reduced our valuation on CVN to 18cps from 28cps because of the lower than expected resource guidance.

We maintain our Speculative Buy recommendation on the stock.


Independent Resource Estimate

CVN commissioned DeGolyer and MacNaughton to conduct an Independent Resource Assessment of the Phoenix 3D seismic area (containing Phoenix South and Roc).

Phoenix South and Phoenix were assessed as having a Gross Contingent Resource (best estimate) of 31MM bbls (6.2MM bbls net to CVN).

Based on these numbers we think it would be unlikely that Phoenix South would be viable as a stand-alone development but could be tied-back to a larger development associated with a discovery at Roc.

Other prospects within the Phoenix South 3D area had a combined Gross Prospective Resource Estimate (Best) of 73MM bbls un-risked with a risked estimate of 25MM bbls (5MM bbls net to CVN).

The largest of these was the Roc prospect which was assessed as having a prospective resource (best estimate, unrisked) of 42MM bbls (8.4MM bbls net to CVN).

The report was able to confirm Apache’s original oil in place estimate of 300MM bbls (296MM bbls confirmed).

This would assume a recovery factor of 19% (best estimate recoverable volume being 56MM bbls).

Historically recovery factors on the North West Shelf have ranged between 20% and 30%.


Roc-1 well – expected to spud in 4Q CY15

According to CVN’s announcement Apache plans to drill the Roc-1 well in 4Q CY15.

Apache has contracted Noble Corporation’s new build jack-up, the Tom Prosser, from September this year for a “sustained programme of exploration and development wells in the Carnarvon basin”.

CVN is carried to a cap of US$70m for this well.

Given the sharp decline in rig rates over the last 12-months we think this cap removes almost completely the risk of cost over runs (and CVN having to contribute to the well cost).


Valuation and Target Price

We are reducing our target price on CVN to 18cps from 28cps.

After the sale of the remaining 20% of the Thai production assets in February CVN had A$108m in cash or 10.4cps.

The Company has advised that it will spend circa $8-10m on 3D seismic this year reducing cash to A$98m or 9.5cps.

Based on what the market is prepared to pay for early stage exploration success (FAR provides a good reference point) we value the 2C resource (Phoenix South / Phoenix) at US$5/bbl or A$41m (3.9cps).

We value Roc and the other prospects and leads at A$24m or 2.3cps. Assuming flow rates can be maintained in Thailand at around 4,000-5,000boe/d then we think the CVN royalty stream is worth 2.4cps.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 13 Apr 2015 07:00:00 -0400 https://www.proactiveinvestors.com/companies/news/67988/carnarvon-petroleum-speculative-buy-from-hartleys-with-018-price-target-79234.html
<![CDATA[News - Carnarvon Petroleum's drilling of Roc-1 not impacted by partner change ]]> https://www.proactiveinvestors.com/companies/news/67916/carnarvon-petroleums-drilling-of-roc-1-not-impacted-by-partner-change-79155.html Carnarvon Petroleum (ASX: CVN) has noted that Apache Corporation’s (NYSE:APA) decision to sell its Australian assets will not impact on drilling of the Roc-1 well, which is scheduled to spud in the fourth quarter of 2015.

The US$2.1 billion acquisition by a consortium of Brookfield Asset Management (NYSE:BAM) and Macquarie Capital could also offer Apache Australia new opportunities to grow their business.


Roc-1

The Roc-1 well in WA-437-P is planned to commence drilling in the fourth quarter of calendar 2015 targeting Prospective Resources of between 12 million and 133 million barrels of oil.

It follows on the successful Phoenix South-1 well in WA-435-P that was confirmed as a light oil discovery.

Roc-1 has a high 42% chance of success with Apache Australia and JX Nippon paying for the first US$14 million of Carnarvon’s 20% share in the well.


DeGolyer and MacNaughton Report

Besides the contingent resource estimate of between 6MMbbl and 56MMbbl of recoverable oil for Phoenix South-1 and prospective resource estimate of between 12MMbbl and 133MMbbl for Roc, the independent report by DeGolyer and MacNaughton also included estimates for other prospects.

These include:

- Phoenix, contingent resource of 3MMbbl to 28MMbbl;
- Bewdy, prospective resource of 3MMbbl to 26MMbbl;
- Bottler, prospective resource of 2MMbbl to 20MMbbl; and
- Phoenix-2 updip, prospective resource of 1MMbbl to 14MMbbl.

Together, these give the Phoenix 3D seismic area estimated contingent and prospective recoverable oil of between 48MMbbl and 232MMbbl.


Phoenix South-1 discovery

The Apache-led joint venture continues its work on the Phoenix South-1 well data and the data from previously drilled wells in the permit.

This work addresses many geological aspects including reservoir development and quality, the type and potential source of the oils discovered and determining where the same results may occur elsewhere in the blocks.

The work is expected to continue for a significant period of time and further updates will incorporate this work as it progresses.

Importantly, these volume estimates are subject to ongoing technical analysis that is currently being undertaken by the operator, Apache, including “special core analysis”.

In December, the Phoenix South-1 well in WA-435-P was confirmed as a light oil discovery with exceptional quality and highly favourable mobilities.

Carnarvon has a 20% interest in WA-435-P and WA-437-P. Apache holds 40%, JX Nippon 20% and Finder Exploration 20%.


Analysis

Notably, the change will not impact on drilling of the Roc-1 well in the fourth quarter of 2015.

Carnarvon is fully funded for further activity in the North West Shelf in 2015 with $108 million in cash.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 09 Apr 2015 14:59:00 -0400 https://www.proactiveinvestors.com/companies/news/67916/carnarvon-petroleums-drilling-of-roc-1-not-impacted-by-partner-change-79155.html
<![CDATA[News - Carnarvon Petroleum has big oil potential in the North West Shelf ]]> https://www.proactiveinvestors.com/companies/news/67867/carnarvon-petroleum-has-big-oil-potential-in-the-north-west-shelf-79099.html Carnarvon Petroleum (ASX:CVN) has received an independent best estimate of 104 million barrels of contingent and prospective recoverable oil within the Phoenix 3D seismic area in the North West Shelf off Western Australia.

This includes a best estimate contingent resource of 19MMbbl (million barrels) for the Phoenix South discovery and 42MMbbl of prospective resources for the Roc prospect.

The Roc-1 well is planned to commence drilling in the fourth quarter of calendar 2015.

“In the context of recent Australian oil discoveries, these estimates of recoverable oil within the Phoenix South and nearby structures are significant and great news in terms of our strategy of opening up an entirely new oil province on the North West Shelf,” managing director Adrian Cook said.

“The provision of a range of outcomes is normal industry practice; and the extent of the range indicates that we are still in the early stage of understanding what we have.

“In particular, the recoverable volumes have been calculated using a reasonably conservative and broad range of recovery factors. The ongoing technical work, including “special core analysis”, is expected to refine this range.

“The Roc-1 well is a standout exploration opportunity given the best estimate Prospective Resource of 42 million barrels of oil, which is definitely a commercially attractive proposition if confirmed, and a high 42% chance of success.

“A high-side outcome of up to 133 million barrels of recoverable oil would be an outstanding result and there is little capital risk to investors as the first US$14 million of Carnarvon’s share of any drilling activity in the permit will be paid for by Apache and JX Nippon.

“DeGolyer and MacNaughton also verified Apache’s initial oil in place estimate of up to 300 million barrels for the Phoenix South structure alone, assessing 296 million barrels of oil in place and 56 million barrels recoverable in the high side case.

“This continues to be an exciting time for Carnarvon, with the ongoing assessment of further prospective resources, Roc-1 drilling scheduled for this year and further data acquisition to identify additional prospectivity in the region held by the Joint Venture Partners.”


DeGolyer and MacNaughton Report

Besides the contingent resource estimate of between 6MMbbl and 56MMbbl of recoverable oil for Phoenix South-1 and prospective resource estimate of between 12MMbbl and 133MMbbl for Roc, the independent report by DeGolyer and MacNaughton also included estimates for other prospects.

These include:

- Phoenix, contingent resource of 3MMbbl to 28MMbbl;
- Bewdy, prospective resource of 3MMbbl to 26MMbbl;
- Bottler, prospective resource of 2MMbbl to 20MMbbl; and
- Phoenix-2 updip, prospective resource of 1MMbbl to 14MMbbl.

Together, these give the Phoenix 3D seismic area estimated contingent and prospective recoverable oil of between 48MMbbl and 232MMbbl.


Phoenix South-1 discovery

The Apache-led joint venture continues its work on the Phoenix South-1 well data and the data from previously drilled wells in the permit.

This work addresses many geological aspects including reservoir development and quality, the type and potential source of the oils discovered and determining where the same results may occur elsewhere in the blocks.

The work is expected to continue for a significant period of time and further updates will incorporate this work as it progresses.

Importantly, these volume estimates are subject to ongoing technical analysis that is currently being undertaken by the operator, Apache, including “special core analysis”.

In December, the Phoenix South-1 well in WA-435-P was confirmed as a light oil discovery with exceptional quality and highly favourable mobilities.

Carnarvon has a 20% interest in WA-435-P and WA-437-P. Apache holds 40%, JX Nippon 20% and Finder Exploration 20%.


Phoenix Area

In August 2014, Carnarvon and its partners struck oil at the Phoenix South-1 well with subsequent evaluation of samples confirming that it is high quality light oil.

Reservoir permeability inferred from pressure build-up during oil sampling ranges from tens to hundreds of millidarcies.

The ability for oil to flow from the reservoir is demonstrated by the recovery of these six oil samples, as well as being supported by the reservoir permeability results is indicative of a productive oil reservoir.

The oils are significantly under-saturated and there is no indication of a primary gas cap.

Apache and Nippon also committed to drill the follow-up Roc-1 well to a cap of US$70 million.

In January, the partners stepped up exploration by licensing modern 3D and 2D seismic that is being acquired over the Phoenix area in the North West Shelf off Western Australia.

The Polarcus Asima seismic vessel has started acquisition of the large Capreolus 3D multi-client seismic program.

The JV will license about 5,100 square kilometres of this program over WA-435-P and WA-437-P.

This increases the total modern 3D seismic to about 10,000 square kilometres of the 22,000 square kilometres covered by the four contiguous Phoenix area permits.
   
Additionally, a new two dimensional seismic acquisition program will acquire modern 2D seismic data over most of the remaining acreage holding.

Carnarvon will invest about A$10 million from existing cash to fund its share of acquiring the seismic data.


Analysis

The resource estimate by DeGolyer and MacNaughton provides Carnarvon Petroleum with a clearer picture of the potential of its Phoenix South discovery and nearby prospects.

Notably, the estimate of between 48 million and 232 million barrels of recoverable oil in the Phoenix 3D seismic area was calculated using conservative factors and ongoing technical work will refine this range.

Carnarvon is fully funded for further activity in the North West Shelf in 2015 with $108 million in cash.

The Roc-1 exploration well is expected to spud in the fourth quarter of this year.



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Tue, 07 Apr 2015 10:00:00 -0400 https://www.proactiveinvestors.com/companies/news/67867/carnarvon-petroleum-has-big-oil-potential-in-the-north-west-shelf-79099.html