Join our daily newsletter At The Bell to receive exclusive market insights
- Carnarvon Petroleum’s (CVN) Buffalo-10 well is scheduled to spud in early November
- Drilling plans show that Buffalo-10 will be the first production well in the redevelopment program
- CEO Adrian Cook said preparations for drilling the Buffalo-10 well are in “good shape”
- On the market today, Carnarvon is up 5 per cent and is trading at 26.3 cents per share
Carnarvon Petroleum’s (CVN) Buffalo-10 well is on schedule to spud in early November.
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.
The Buffalo project includes the redevelopment of the Buffalo oil field in the Timor Sea. The field resides in only 30 metres of water with a reservoir depth between 3200 and 3300 metres below the seabed.
Earlier this year, CVN completed a farm-in deal with Advance Energy a 50 per cent interest in the project by spending up to US$20 million (A$27.6 million) on drilling the Buffalo-10 well.
The previous field proved the existence of very high deliverability reservoir containing high quality light oil.
Carnarvon is preparing to drill a well that will enter the existing oil column remaining and sees the extent of the revised mapped attic oil column.
The company’s mid-case recoverable volume estimate is 31 million barrels.
With the minimum economic field size estimated to be significantly lower than the mid case-estimate, the company believes there is a strong chance the Buffalo-10 well will confirm an economic project.
Carnarvon’s drilling plans show that Buffalo-10 will be the first production well in the redevelopment program.
A few weeks ago, Carnarvon has contracted a rig to commence drilling operations at the Buffalo-10 well, which is expected to commence in early November.
CEO Adrian Cook said preparations for drilling the Buffalo-10 well are in “good shape”.
“We continue to work well with and enjoy the support of our joint venture partner, Advance Energy Plc, who have contributed US$20 million towards the cost of the Buffalo-10 well and now hold a 50 per cent interest in the project,” Mr Cook said.
“Once drilling commences, we expect to reach the target in around 35 days and, given our modelled economics, this well has the potential to be value transforming for Carnarvon.”
On the market today, Carnarvon was up 5 per cent and is trading at 26.3 cents per share at 1:11 pm AEST.
