Carnarvon Petroleum Limited ("Carnarvon") (ASX:CVN) (OTCMKTS:CVONF) is pleased to provide the following update on its near-term drilling program as advised by the operator, Quadrant Energy.

Highlights

- The drilling rig for the Phoenix South-3 well is expected to be on location around 5 April 2018, being a short delay caused by cyclone Marcus passing the tow path for the rig

- The well is expected to commence drilling operations (spud) around 10 April 2018

- Phoenix South-3 well is only ~560 metres from the Phoenix South-2 gas and condensate discovery

- This well will target an estimated gross mean recoverable prospective resource of 489 Bscf of gas and 57 million barrels of associated condensate

- Gas and condensate in the Phoenix South structure is in addition to that in the Roc structure

The GSF Development Driller-1 semi-submersible drilling rig (pictured below) is in the final stage of its journey from Port Louis (Mauritius) to Australia on the way to drill the Phoenix South-3 well. Towing speeds have had a minor impact on the original expected arrival date, particularly the consequence of cyclone Marcus passing in front of the planned tow route. The rig is now expected to arrive on location around 5 April 2018 and be ready to commence drilling around 10 April 2018.

The objective of the Phoenix South-3 well is to assess the gas and condensate discovered at the top of the Caley interval in the 2017 Phoenix South-2 well (refer CVN ASX announcement on 19 December 2016 and 28 March 2017). The well is to be located only some 560 metres from the Phoenix South-2 well. The Phoenix South-3 well design has been constructed to specifically allow for the evaluation of this Caley interval, unlike the Phoenix South-2 well that was designed to evaluate a broader range of reservoir intervals.

The Phoenix South structure at the Caley interval is estimated 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. The estimated condensate-to-gas ratio is very significant and is based on surface gas sampling from a permeable section at the top of the Caley Sandstone encountered while drilling the Phoenix South-2 well.

The above gas and condensate is in addition to that already discovered and initially appraised in the Roc structure, also in the Caley interval. That structure is estimated to contain a gross contingent resource (2C) of 332 Bscf of gas and 19 million barrels of associated condensate (being 74 million barrels of oil equivalent ("boe"), gross, 2C).

Carnarvon Petroleum                        20% 
Quadrant Energy (Operator)                 80% 

To view figures, please visit:
http://abnnewswire.net/lnk/G687T73U


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.

  

Contact

Mr Thomson Naude
Company Secretary
Phone: +61-8-9321-2665
Email: investor.relations@cvn.com.au



Link: Phoenix South-3 Rig Update



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