Join our daily newsletter At The Bell to receive exclusive market insights
- Carnarvon Petroleum (CVN) contracts a rig to commence drilling operations at the Buffalo-10 well off the coast of northern Western Australia
- The rig is currently drilling in the Timor Sea which is expected to take between eight and 10 weeks
- After this, the rig will mobilise to the Buffalo Project to start drilling which is being funded by Advance Energy, for it to earn a 50 per cent stake in the project
- Carnarvon Managing Director and CEO Adrian Cook says the contract marks an important milestone as it moves towards redeveloping the Buffalo field
- Company shares were up 2 per cent at 25.5 cents
Carnarvon Petroleum (CVN) has contracted a rig to commence drilling operations at the Buffalo-10 well.
Buffalo-10 is part of the company’s 50 per cent-owned Buffalo Project which is located within the Bonaparte basin off the coast of northern Western Australia.
Earlier this year, CVN completed a farm-in deal with Advance Energy for it to acquire a 50 per cent interest in the project by spending up to US$20 million (A$27.2 million) on drilling the Buffalo-10 well.
The newly-signed contract is with offshore drilling contractor, Valaris, who’s currently drilling about 300 kilometres away from the Buffalo location in the Timor Sea.
These operations are expected to be completed in eight to 10 weeks. Following this, the rig will mobilise to the Buffalo-10 well.
Carnarvon Managing Director and CEO Adrian Cook was pleased to have contracted a drill rig.
“We’re delighted to have signed the contract with Valaris to drill the highly anticipated Buffalo-10 well later this year. Having secured a rig that is currently in operation is hugely beneficial in terms of the direct continuation of drilling and associated services,” he said.
“The signing of the rig contract marks another significant milestone for the company as we move towards drilling and subsequent redevelopment of the Buffalo field. The Carnarvon team looks forward to working closely with Valaris to deliver the Buffalo-10 well safely and efficiently.”
The actual timing of the well is subject to securing the remaining drilling support services and equipment, as well as joint venture and regulatory approvals.
Once the Buffalo-10 well has been drilled, Carnarvon and Advance Energy may form a joint venture to secure additional funding and take advantage of the strengthening oil market.
Company shares were up 2 per cent at 25.5 cents at 10:54 am AEST.
