Carnarvon Petroleum Limited (ASX:CVN) Phoenix South-3 Drilling Update

Carnarvon Petroleum Limited ("Carnarvon") (ASX:CVN) (OTCMKTS:CVONF) is pleased to provide the following update on the drilling of the Phoenix South-3.

Progress

The 13 5/8" casing was successfully set and cemented in place and drilling commenced in the 12 1/4" x 14 3/4" hole.

Current Operations

The rig is currently drilling ahead at 4,352 m Measured Depth.

Forward Plan

At current rate of penetration, it is expected that the 12 1/4" hole with concurrent hole opening to 14 3/4" diameter will take only one additional day to drill down to 4,590 metres Measured Depth after which the 11 3/4" liner will be set. After setting this liner, operations will continue with drilling in 10 5/8" hole and subsequently opening to 12 1/4" diameter to just above the Caley primary target. The Caley is expected to be intersected at a depth of approximately 5,360 metres Measured Depth.

Well Objective

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 Energy Ltd

Carnarvon Energy 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.

  

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