Apache to Drill New Sidetrack Wellbore Section at WA's Phoenix South-1 Well

Carnarvon Petroleum Limited (Carnarvon or the Company) reported Monday that a new sidetrack wellbore section of the Phoenix South-1 well in permit WA-435-P on the North West Shelf off Western Australia is required to be drilled below the 13.375 inch casing depth, due to the 9.625 inch casing hanger seal assembly running tool (CHSART) (casing tool), becoming stuck and preventing forward drilling progress of the current wellbore.

As reported June 13, the Phoenix South-1 well had drilled to 12,158 feet (3,706 meters) depth and was in the process of setting the 9.625 inch diameter casing to support the hole, as per standard industry practice. After setting and cementing the casing in place, the casing tool was unable to be retrieved from the wellhead.

Apache Energy (Apache, or the Operator) notified Carnarvon that despite several unsuccessful attempts to retrieve the casing tool, it remained stuck, and forward progress in the current wellbore was not possible.

The Operator has advised Carnarvon that it intends to cut and retrieve the casing from a point just below the 13.375 inch casing point to retrieve the stuck casing running tool. A new sidetrack wellbore will be drilled from this point down to the same depth (approximately 12,139 feet or 3,700 meters) as the initial hole and the 9.625 inch cement casing will be set, as per industry practice.

The above mentioned operations are outside the scope of the original drilling plan, and the Operator estimates that this procedure could add approximately 20 days to the expected drill schedule.

The additional net cost to Carnarvon, if the total well costs exceed the farm-in cap, is anticipated to be around $3.76 million (AUD 4 million) for the respective time frames. Carnarvon has made provision for such eventualities and has the capacity to comfortably fund these additional costs, in the event the farm-in cap is exceeded.

Carnarvon will provide further updates on the above drilling activities as the sidetrack 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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