Carnarvon Petroleum Limited reported Thursday that it has secured a 35 percent interest in retention license TR/3 offshore Western Australia, containing the previously discovered Blencathra oil resource, WA-155-P containing the Outtrim-1 oil discovery and WA-486-P.
The objective of this project is to discover and aggregate sufficient oil resources to underpin a field development. Central to this strategy will be the result of the Outtrim East-1 well which will in addition to testing the extent of oil discovered in the Outtrim-1 reservoir, investigate the potential for new oil charged sands to the north and east of the original 1984 well. Quadrant Energy (as operator) is currently planning to drill the Outtrim East-1 well around June using the contracted jackup Noble Tom Prosser (400' ILC).
Carnarvon Managing Director and CEO, Adrian Cook said, “This project illustrates the mutual confidence and strong relationship between Carnarvon and Quadrant Energy, as well as underpinning our focus on North West Shelf oil and gas exploration. The opportunity provides us with tremendous upside potential for a relatively modest investment, and represents another step forward in our strategy to position Carnarvon for a recovery in oil prices.”
All shareholders are encouraged to read the latest CEO Newsletter for the Company’s views on the oil price and its strategy on the North West Shelf. The newsletter can be found at http://carnarvon.com.au/investor-centre/ceo-newsletters.
Carnarvon will pay its 35 percent share of the cost to drill the Outtrim East-1 well which is estimated to be approximately $7 million or AUD 10 million (net). Carnarvon will also pay a modest consideration to the vendors to enter the project.
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