Carnarvon Energy Ltd. has identified five prospects on its Bedout exploration permits in Western Australia for future drilling campaigns.
Based on the latest 3D seismic data, the Ara, Wallace, Wendolene, Starbuck and Pavo South prospects located in the Dorado Phase 2 development are estimated to contain gross and unrisked reserves of 623 million barrels of oil equivalent, 352 million barrels of liquids. , and 1.52 trillion cubic feet of gas, Carnarvon said in a recent press release. The five prospects were chosen for their “potential to generate resource scale, de-risk significant prospectivity within nearby clusters and strengthen a range of development opportunities,” the company added.
“As evidenced by Carnarvon’s recent partial divestment of a 10% interest in its Bedout assets to CPC Corporation, Taiwan, the Bedout sub-basin represents Australia’s most promising and exciting offshore exploration acreage. The recent interpretation results emphasize the substantial amount of potential execution space to be had if any of the identified resource groups are found. [sic] successful As we progressively evaluate the latest 3D seismic data, we have the difficult task of deciding which of the high-quality targets to drill first across a large number of very attractive opportunities,” said Adrian Cook, Managing Director and CEO of Carnarvon.
The Ara prospect, located in the northern half of exploration permit WA-435-P, could contain 549 billion standard cubic feet (Bscf) of gas and 91 million barrels of Pmean, crude condensate, the company said. “With a very robust 37 percent probability of geological success, Ara could form the basis of a new gas-focused cluster in the northern Bedout sub-basin, and significantly reduce the risk of nearby potential resources contained within a concentric collection system”. said Carnarvon.
The Starbuck prospect, located to the east of exploration permit WA-436-P with an “attractive geological chance of success” of 58 percent, is targeting 113 million barrels of significant associated oil and gas, said Carnarvon. “Success would also de-risk Fall Line, Coho, Tacoma, Stampeders and many other prospects, which could fuel a future Starbuck’s development project,” the company added.
Carnarvon said three additional areas have been identified around Wendolene, Wallace and Pavo South, with the gas-centered Wendolene and Wallace clusters and the more liquid-rich Pavo South cluster.
The Dorado oil field was the largest oil discovery made on Western Australia’s northwest shelf in three decades when it was discovered in 2018, according to Carnarvon’s website. The company has a 10 percent interest in the Dorado discovery, which is operated by Santos Ltd. with an 80 percent interest, while Taiwan’s national oil and gas company CPC Corp. owns the remaining 10 percent.
Carnarvon said the joint venture for the Dorado asset has plans for further exploration drilling on the Bedout exploration permits in the “medium term”, and discussions have “been maturing” on slot safety of drilling on a semi-submersible drilling platform for two to three years. wells in exploration permits WA-435-P, WA-436-P and/or WA-438-P. Carnarvon noted that the precise timing for the next round of exploratory drilling depends on the timing for regulatory approvals, particularly the new consultation process related to the preparation of environmental plans, as well as the usual joint venture approvals.
In mid-August, Carnarvon completed the divestment of a ten percent stake in its Bedout assets to Taiwan CPC for a total cash consideration of $146 million. Carnarvon received an adjusted upfront payment of $58 million, and there will be another transfer of $90 million for Carnarvon’s share of Dorado development costs once a final investment decision is made. The effective date of the sale is August 31, according to a previous press release.
“The completion of the CPC transaction is a crucial financing milestone for Carnarvon and a key piece in the company’s transformation journey to deliver high-quality, low-cost production for shareholders,” Cook said. “Critically, the agreement with CPC provides Carnarvon with significant funding for the development of the world-class Dorado and Pavo fields, the largest undeveloped oil field offshore Australia. With CPC’s formal incorporation into the company together, Carnarvon’s immediate focus is to work with it, and with Santos, to reach a final investment decision on the Dorado development as soon as possible.”
“Carnarvon is uniquely positioned among mid-cap energy stocks in terms of its resource base, strong financial liquidity and unmatched exploration potential of its Bedout assets. I look forward to providing shareholders with further positive news on progress of the Dorado development and broader exploration of Bedout in the coming months,” Cook said.
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