- Carnarvon Petroleum (CVN) has provided an update on the development of the Dorado oil gas and condensate field in offshore WA
- The company holds a 20 per cent interest in Dorado while its joint venture partner, Santos owns 80 per cent
- The Dorado Field was discovered last year and quickly proved to be a world-class liquids-rich petroleum system with high quality reservoirs
- The project is currently in the late stages of the concept select phase for the liquids development
- Currently, gas re-injection is the preferred development model as it induces the flow of crude oil and gas
- The joint venture partners are planning a Front End Engineering and Design phase in early 2020 to control expenses
- Carnarvon Petroleum shares remain flat and are trading for 34 cents each
Carnarvon Petroleum (CVN) has provided an update on the development of the Dorado oil gas and condensate field in the Bedout Basin in offshore Western Australia.
The oil and gas explorer has a 20 per cent interest in the Dorado Field through a placement with Santos Limited. Santos is the Operator of Dorado and holds an 80 per cent interest.
The project is currently in the late stages of the concept select phase for the liquids development.
The joint venture partners plan to commence the Front End Engineering and Design (FEED) phase in quarter two of 2020.
During the FEED process, the final development and contracting strategy will be selected for key development components such as the number of wells and whether the joint venture leases or acquires a Floating Production Storage and Offtake (FPSO) vessel.
In an investor presentation, Santos highlighted the strong potential the Dorado Field has.
“The information released by the operator today demonstrates that the Dorado project has the potential for incredibly strong flow rates. Ultimately the initial flow rates will be dependent on the nature of the development,” Managing Director Adrian Cook said.
Currently, gas re-injection is the preferred development model for liquids development as it induces the flow of crude oil and gas.
The Dorado Field was discovered last year and quickly proved to be a world-class liquids-rich petroleum system with high quality reservoirs.
In its initial report, Carnarvon said there could be 170 million barrels of oil in the Dorado strike, with potential to be larger.
In late September, Santos announced flow tests at the Caley reservoir showed a maximum rate of approximately 48 million standard cubic feet per day of gas and 4500 barrels per day of associated condensate during a 12 hour period.
The company has started discussing financing options with domestic and international banks.
Oil traders have also indicated interest in providing support as an additional source of a funding to senior debt.
Carnarvon will commence a formal financing process once the development and contracting strategy has been finalised.
“We look forward to finalising the concept select in the coming months and announcing the commencement of the FEED work in the new year,” Adrian said.
Carnarvon Petroleum shares remain flat and are trading for 34 cents each at 2:00 pm AEDT
Santos has dropped a slight 0.49 per cent however with shares trading for $8.06 cents each at 2:00 pm AEDT.