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Carnarvon Petroleum adds third well to 2019 program at Dorado oil, gas and condensate discovery

The Roc South-1 exploration well has a relatively high chance of geological success of 63%.
3D seismic image of Top Caley interval
A 3D seismic image of the Top Caley interval on the North West Shelf

Carnarvon Petroleum Limited (ASX:CVN) has added a third well, Roc South-1, to the 2019 drilling program at the Dorado oil, gas and condensate joint venture project offshore Western Australia.

An exploration well will be drilled immediately after the nearby Dorado-2 appraisal well is completed.

The Noble Tom Prosser rig will then finish its 2019 drilling campaign for the JV with the Dorado-3 appraisal well.

Joint venture partners are Carnarvon with 20% and project operator Santos Ltd (ASX:STO) with 80%.

READ: Carnarvon Petroleum readies Dorado appraisal for final investment decision in 2020

Carnarvon managing director Adrian Cook said: “The addition of the Roc South-1 well to the 2019 drilling campaign makes a great deal of sense given the large size of the prospect and the high chance of discovery by industry standards.

“The joint venture has ambitions to make a final investment decision to develop the Dorado field in 2020 and given the close proximity, Carnarvon anticipates that success at Roc South would mean it would likely form part of the world-class Dorado project.”

The low-risk Roc South target is estimated to contain 74 million barrels oil equivalent (Pmean, gross).

Roc South has a very similar geological trap structure to the Dorado-1 discovery and like Dorado is up-dip of the Roc structure.

Given the very similar seismic characteristics to Dorado and what is anticipated to be an identical oil sourcing mechanism, Roc South has a relatively high chance of geological success of 63%.

With the crest of Roc South around 13 kilometres from the crest of the Dorado structure, any drilling success at Roc South would likely result in this structure being developed with the Dorado field.

READ: Carnarvon Petroleum secures jack-up drill rig for appraisal program at Dorado discovery

Shallow water depths in this part of the Canning Basin on the North West Shelf mean that the JV can utilise the cost-effective Noble Tom Prosser jack-up rig for these wells.

The Noble Tom Prosser rig was also used to drill the Roc-1 discovery in this area in 2016.

Dorado-2 appraisal well is expected to begin around April.

A cost-effective Noble Tom Prosser jack-up rig will be used.

Estimated quantities of petroleum that may potentially be recovered by the application of a future development project relate to undiscovered accumulations.

These estimates have an associated risk of discovery and risk of development.

Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons, including the 2019 drilling campaign.

Appraisal well objectives

The appraisal wells planned for 2019 have a number of objectives.

One aim is to focus on gaining further information on the volume of oil, gas and condensate discovered in the Dorado-1 well to build proved reserves which will underpin the Dorado development.

Another is to determine the flow properties of those hydrocarbons from the reservoirs intersected in order to optimise the Dorado development.

The third is to obtain additional data at different locations within the Dorado field.

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