Santos Pavo Discovery Dubbed A Stellar Exploration Success

Santos Pavo Discovery Dubbed A Stellar Exploration Success
Carnarvon, Santos' partner in Pavo, stated that the drilling of the well was a huge success with further appraisal and exploration campaigns being considered.

Carnarvon Energy, Santos’ partner in the Pavo well, stated that the drilling of the well was a huge success so much so that the firm is now considering further appraisal and exploration campaigns.

Carnarvon said that it completed its Pavo resource assessment pleased to report on the contingent and prospective resources. The successful Pavo-1 oil discovery significantly increases Carnarvon’s oil resources for potential development through the Dorado facilities, located around 30 miles from Pavo.

The greater Pavo closure comprises a northern structure, from which the Pavo-1 well recovered hydrocarbons and a southern structure. The two structures are separated by a narrow syncline, with the depth of the syncline being shallower than an interpreted residual oil-water contact noted in Pavo-1. This supports the position that Pavo South is likely filled with the same oil encountered in Pavo North.

“As we reported a little over a month ago, the Pavo-1 well result is another stellar exploration success in Carnarvon’s history in the Bedout Sub-basin. I’m now pleased to be able to report on the contingent and prospective resources within the Pavo structure," Managing Director and CEO Adrian Cook said.

“When we consider Carnarvon’s share of the Dorado field oil resource is 32 million barrels (2C), the addition of 13 million barrels (2C) in Pavo North, and 16 million barrels (prospective Pmean) in Pavo South holds great significance to the company and its shareholders.

“Importantly, Pavo has the potential to maintain high flow rates through the Dorado production facilities and thereby preserve the field’s low operating costs per barrel for an extended period.

“The success of the Pavo-1 well has also led the joint venture to consider its upcoming appraisal and exploration campaigns in the Bedout Sub-basin. Carnarvon is working closely with the operator, Santos, to define these targets and will provide more information to shareholders in due course,” Cook concluded.

The Dorado field and facilities are in the WA-64-L production license, in which Carnarvon holds a 20 percent interest. Pavo is in the WA-438-P exploration permit, in which Carnarvon holds a 30 percent interest.

The Dorado production facilities will consist of a wellhead platform connected to an FPSO vessel less than two miles from each other. The design for the facilities allows for flexibility to bring in hydrocarbon fluids from other fields for processing and storage, with provision for a future phase of gas production and export.

During the initial oil production of the Dorado field, gas will be re-injected to enhance the oil recovery. This will result in very high initial rates of oil production, with the facilities being designed to handle rates of up to 100,000 barrels of oil per day.

Fluid production rates from Dorado are expected to naturally decline after a plateau period of 1-2 years, at which time there will be spare capacity in the crude oil handling facilities, allowing for back-fill from new fields such as Pavo.

The Pavo field lies within industry-standard ranges for tie-back distance and could be delivered to the Dorado facilities at a time and rate that enables very efficient utilization of the Dorado facility and extends the period the Dorado project can produce at capacity.

Given the excellent reservoir quality in the Caley Member, the Pavo North field could be developed with a relatively low number of production wells and tied back to the Dorado FPSO. The Pavo South accumulation – once drilled and confirmed – could also be tied-back with additional wells potentially being connected to the Pavo facilities.

Santos, as the operator of Dorado, said in early April that the FID for the project was expected in the middle of this year but later that month confirmed it was targeting the project to be FID-ready in the second half of the year.

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