Phoenix South-3 Drilling Update
The 10-5/8" hole has been drilled down to 5,041 metres Measured Depth. Progress has been slower than anticipated due to precautionary inspection and maintenance procedures being undertaken since the last update and the rate of penetration through the seal rock.
The rig is currently drilling ahead.
Drill the 10-5/8" hole from 4,945 metres MD to approximately 5,160 metres MD. Following this the 9 5-8" liner will be set before drilling will continue in the 8-1/2" hole. The primary target Caley reservoir is anticipated to be intersected in the 8-1/2" hole at a depth of approximately 5,183 metres MD.
Comparison to Phoenix South-2 ("PS-2")
The PS-3 well is in close proximity to the previous PS-2 well and as expected is encountering similar geological features. All formations are coming in close to prognosis. The well logs look similar in character between the two wells. Oil shows recognised in the Hove in PS-2 were also encountered in PS-3, albeit in better developed sands, however Carnarvon is not proposing further investigation of these sands in this well. The well is currently drilling through the top seal of the prospective Caley reservoir.
The primary objective for the Phoenix South-3 well is to evaluate the gas and condensate potential of the Caley Member within a large, faulted anti-clinal closure that was partially penetrated with the Phoenix South-2 well.
Phoenix South-2 encountered gas and condensate in the Caley Member but was unable to drill through and evaluate the formation. The Phoenix South-3 well has been optimally designed to penetrate and evaluate the hydrocarbon bearing formations of the Caley Member.
Phoenix South-3 is located around 560 metres North-North East of the Phoenix South-2 well. The well will target a closure that is estimated by Carnarvon to contain a gross mean recoverable prospective resource of 489 Bscf of gas and 57 million barrels of associated condensate (being 143 million barrels of oil equivalent ("boe"), gross, Pmean) - Refer to ASX Announcement on 28 March 2017. Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project and may relate to undiscovered accumulations. These prospective resource estimates have an associated risk of discovery and risk of development. Further exploration and appraisal (including this well) is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
Project equity Owners: Carnarvon Petroleum 20% Quadrant Energy (Operator) 80%
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About Carnarvon Petroleum Limited
Carnarvon Petroleum Limited is an oil and gas exploration company, listed on the Australian stock exchange (ASX:CVN), Frankfurt (FRA:CJB) and US OTC (OTCMKTS:CVONF). Carnarvon has an extensive acreage position in the North West Shelf of Western Australia that is designed to offer investors high alpha leverage to the energy sector. The company's near term focus is on maturing oil, gas and condensate discovered in its Phoenix project, with partner Quadrant Energy, and on bringing into production oil from the Buffalo field.
Carnarvon Petroleum Limited