Apache Drills a Sidetrack Wellbore Section at Phoenix South-1 Well Off WA

Carnarvon Petroleum Limited (Carnarvon, or the Company) reported Tuesday that the Phoenix South-1 well in permit WA-435-P on the North West Shelf offshore Western Australia has commenced drilling operations in the side track wellbore.

As at 06:00 hours July 7 the well was drilling ahead at approximately 6,430 feet (1,960 meters) on the way to the 9.625 inch casing point of around 12,139 feet (3,700 meters).

As reported June 23, a new side-track wellbore section of the Phoenix South-1 well was required to be drilled below the 13.375 inch casing depth, due to a stuck 9.625 inch casing hangar seal assembly running tool (casing tool).

In order to retrieve the stuck casing tool, the upper portion of the previously set 9.625 inch casing was cut and retrieved along with the casing tool.

The original wellbore was plugged with cement and a new side-track wellbore commenced drilling operations July 5.

The new side-track wellbore is being drilled at a distance of around 98.4 feet (30 meters) from the original wellbore. The positioning and forward plans of the side-track wellbore does not compromise the evaluation of the Phoenix South-1 prospect.

At the current time the operator expects drilling to reach its Total Depth (TD) around mid August and complete well operations by the end of August. At the current time, the estimated additional cost to Carnarvon of the side-track operation is around $5.63 million (AUD 6 million), based on final costs exceeding the cost cap of $70 million.

Carnarvon CEO Adrian Cook said, “We congratulate Apache on the successful side-tracking of the wellbore. This news will be warmly appreciated by our shareholders. Carnarvon adopted a strategy of prudency in regards to funding its drilling commitments and has the financial capacity to comfortably meet the addition costs associated with the side-track.”

Carnarvon will provide further updates on the above drilling activities as the well progresses.

The equity interest holders in the Phoenix South-1 well (upon satisfaction of the farm in agreement terms) are:

  • Carnarvon Petroleum: 20 percent
  • Apache Energy (Operator): 40 percent
  • JX Nippon: 20 percent
  • Finder Exploration: 20 percent


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