Join our daily newsletter At The Bell to receive exclusive market insights
- Carnarvon Energy (CVN) completes its resource assessment and reports contingent and prospective resources at Pavo-1, located offshore of Western Australia
- Contingent resources are estimated at 43 million barrels (2C) and additional prospective resources are estimated at 55 million barrels (Pmean)
- The Pavo-1 oil discovery significantly increases Carnarvon’s oil resources for potential development through the Dorado facilities, located around 46 kilometres from Pavo
- Carnarvon are now assessing Pavo for production through the Dorado facilities
- Company shares last traded at 23.5 cents each
Carnarvon Energy’s (CVN) Pavo 1 oil discovery has significantly increased its oil resources for the potential development of the Dorado facilities, located offshore of Western Australia.
The company announced it completed its Pavo resource assessment and reported on the contingent and prospective resources.
According to Carnarvon, contingent resources are estimated at 43 million barrels (gross,2C) and additional prospective resources are estimated at 55 million barrels (gross, Pmean).
“When we consider Carnarvon’s share of the Dorado field oil resource is 32 million barrels (2C), the addition of 13 million barrels (2C) in Pavo North and 16 million barrels (prospective Pmean) in Pavo South holds great significance to the company and its shareholders,” Managing Director and CEO Adrian Cook said.
“Importantly, Pavo has the potential to maintain high flow rates through the Dorado production facilities and thereby preserve the field’s low operating costs per barrel for an extended period of time.”
The greater Pavo closure includes a northern and southern structure, with the Pavo-1 well recovering hydrocarbons at the northern structure. Carnarvon believes that Pavo South is likely filled with the same oil as Pavo North.
Pavo is located around 46 kilometres east of the proposed location of the Dorado production facilities, which will include a wellhead platform connected to a floating production, storage and offloading (FPSO) vessel.
Carnarvon said that the Pavo North field could be developed with a relatively low number of production wells and tied back to the Dorado FSPO, this would also be followed by Pavo South.
The Dorado field and facilities are located in the WA-64-L production licence, in which Carnarvon holds a 20 per cent interest.
On the market, company shares last traded at 23.5 cents each on April 29.
