CVN - Carnarvon Energy

Highlights

• Significant oil discovery in primary target, the Caley Sandstone
• Excellent reservoir and fluid characteristics
• Caley Sandstone contains a net oil pay thickness of 79.6m
• Hydrocarbon bearing sands also identified in Baxter Member
• Additional potential in Crespin and Milne Sandstone still to come

Carnarvon Petroleum Limited ("Carnarvon" or "the Company"; ASX:CVN) confirms that the Quadrant-Carnarvon Joint Venture has made a significant oil discovery in the Caley Member as part of the current Dorado-1 well drilling campaign.

Light oil has been recovered from excellent reservoir containing a gross hydrocarbon package of 96.1 metres and a net pay thickness of 79.6 metres in highly porous and permeable sands.

The results were confirmed after wireline testing was undertaken at the Dorado-1 well, after it drilled down to around 4,044 metres Measured Depth ("MD") MD in 8-1/2” hole. Currently the well is still in a hydrocarbon bearing column.

Carnarvon Managing Director Adrian Cook said the result is transformational for the company.

"This is a significant discovery given the quantum of the net pay thickness, the quality of the oil and the extremely good reservoir characteristics," Mr Cook said.

"Currently, we estimate the net oil pay is around 80 metres, with more drilling still to come this is very exciting for Carnarvon Petroleum.

"With multiple targets still left, the focus now is to complete the drilling program through the Baxter, Crespin and Milne Members.

In April we highlighted the possibility that the Dorado structure could contain a substantial oil accumulation. Given this outcome has now occurred, Carnarvon will make an assessment of and issue a revised volume estimate as soon as we possibly can once drilling operations have finished."

Click to expand...

barney said:

Pity @Agentm is not still around. He'd give us all the ins and outs of this.

80 metres of Pay zone looks potentially huge and the share price is reflecting that … up another 23% today to close on its high of 34 cents

Flow Rates will be interesting.

Click to expand...

BlindSquirrel said:

I lassoed this rocket around 26c. I'm currently enjoying the ride. When something changes I hope to be quick enough to jump off!

Click to expand...

tech/a said:

This is likely around now.

Click to expand...

HelloU said:

hour and a half of profit taking slide and it just stopped....nerves of steel those DT peeps

Click to expand...

tech/a said:

[][]

Click to expand...

tech/a said:

Bloody hell that's what you get for rushing!!
All at home so sorry no chart!

Yesterdays return to form is a test of the high but I note with
some volume so supply is evident.
Don't see new highs here!

Click to expand...

BlindSquirrel said:

I'm still in on CVN. Another positive announcement. SP opened higher but returning to yesterday's territory again. Double Down?

Click to expand...

BlindSquirrel said:

And a trading halt at on open @ 48.5c. Here's hoping for good news! We'll find out in 2 days.

Click to expand...

Light oil has been recovered from the Crespin Member containing a gross hydrocarbon package of 50 metres and a net oil pay thickness of 22 metres. The quality of the reservoir encountered was better than pre-drill estimates with average porosities of 14 per cent.

Light oil was also recovered from the Milne Member containing a gross hydrocarbon package of 30 metres and a net pay thickness of 18 metres. The average porosity of 13 per cent was also better than the pre-drill estimates.

Pressure data has confirmed that the Dorado structure contains multiple oil columns in the Caley, Crespin and Milne Members and a gas and condensate column in the Baxter Member, aggregating to a total net hydrocarbon pay of 132 metres. The Caley, Baxter and Milne sands did not encounter any water, whereas the lower section of the Crespin sand contains an interpreted water contact.

Click to expand...

• Wireline has confirmed an additional oil discovery within the Secondary Crespin and Milne Sandstone reservoirs at the Dorado-1 location;
• Results have confirmed:

• • Net oil pay of 40m;
  • Highly porous (Crespin 14%/ Milne 13% avg.) reservoir;
  • Resistivity supportive of excellent permeability;
  • Total hydrocarbon net pay now 132 metres in the Dorado-1 well.

• The secondary targets of Crespin and Milne is mapped to contain P50 gross mean volumes of 125mmbboe (CVN – 20%), comprising 67mbbls condensate and 1386Bcf gas;
• The Caley, Baxter and Milne sands did not encounter any water, whereas the lower section of the Crespin sand contains an interpreted water contact.
• We note preliminary rock characteristics have exceeded pre-drill expectations, placing an upside bias to Dorado volumetrics;
• Volumetric estimates will take circa 4 weeks to compile after the completion of the well following this announcement;
• We upgrade our Recommendation to a Buy (prev. Spec Buy), with a Price Target and Valuation of $1.00/sh (prev. $0.50) and $0.84/sh (prev.$0.44) respectively.
• We look to the nearest peer in FAR as a relevant comparison, noting that the market ascribes A$9/bbl for its net (post Govt carry) 2C discovered 70mmbbls contingent resource;
• What we like about an oil discovery as the commercialisation pathway is much simpler. We look to recent adjacent fields in Wanaea-Cossack, Mutineer-Exeter and Legendre as yardsticks:

• • Wanaea-Cossack – FID taken on 60mmbbls 2P gross;
  • Mutineer-Exeter – FID taken on 61mmbbls 2P gross;
  • Legendre – FID taken on 40mmbbls 2P gross;

• Notably, all took less than 5yrs from appraisal to first oil.

JTLP said:

I held this for so long and ditched awhile ago when they got Phoenix underway. Welp - should have stuck by them.

Click to expand...