Carnarvon To Drill Bufallo-10 Well In Early November
Australian oil and gas company Carnarvon Petroleum has stated that it expects to spud the Buffalo-10 well in the Timor Sea in early November.
Carnarvon said that the well would penetrate the existing oil column using the remaining Valaris JU-107 jack-up drilling rig and, because the field was still producing when it was shut-in in 2004, assess the extent of the revised mapped attic oil column.
The Valaris JU-107 jack-up drilling rig will move to the Buffalo drilling site once it has completed its current operations which are around 185 miles from the Buffalo location.
According to the company, the previous field proved the existence of a very high deliverability reservoir containing high-quality light oil that is expected to sell at a premium to Brent in today’s market. Carnarvon’s mid-case recoverable volume estimate is 31 million barrels (gross, 2C contingent resource).
Carnarvon claimed that there was a strong likelihood the Buffalo-10 well would confirm an economic project. Accordingly, the company’s drilling plans provide for the well to be retained as the first production well in the redevelopment program.
Along with its partner Advance Energy, Carnarvon is working on plans to compress the timeline to first production if the well confirms the expected recoverable oil resource. These plans include the supply and installation of suitable equipment to produce the oil.
In Advance’s estimates, Buffalo-10 is considered to have an 85 percent probability of confirming a sanctionable development project based on the minimum economic field size.
"Timing-wise, the rig is expected to commence Buffalo drilling operations in early November, namely in around 6 weeks’ time. A site survey of the anticipated surface location has been undertaken, with confirmation that the location is suitable for the jack-up drilling rig," the company said. Carnarvon also signed contracts for support vessels, helicopters, drilling service providers, and shore base and logistics providers.
It is worth noting that the final well timing will be subject to the release of the rig from the previous operator, and securing the last remaining services and equipment, and receiving regulatory approvals.
"Our preparations for drilling the Buffalo-10 well are in good shape and we’re looking forward to commencing drilling relatively soon. We continue to work well with and enjoy the support of our joint venture partner, Advance Energy, who have contributed $20 million towards the cost of the Buffalo-10 well and now hold a 50 percent interest in the project," Carnarvon Managing Director and CEO Adrian Cook said.
"Once drilling commences, we expect to reach the target in around 35 days and, given our modeled economics, this well has the potential to be value transforming for Carnarvon,” he added.
The Buffalo project involves the redevelopment of the Buffalo oil field in the Timor Sea. The field sits in 100 feet of water with a reservoir depth between 10,000 and 12,000 feet below the seabed.
To remind, the Buffalo project was originally in Australian waters but in 2018 the Australian and Timor-Leste governments signed a maritime boundary agreement that changed the maritime boundary between the two countries, affecting the permit that contains the Buffalo project. The permit was split in two with the part containing the Buffalo field changing hands to East Timor jurisdiction.
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