Carnarvon Energy Ltd

Bedout prospective resources raised 92% to 6,256 MMboe gross (unrisked Pmean) across 130 prospects, from 3,263 MMboe in June 2025; net to Carnarvon 1,021 MMboe. Ara (CVN 10%, 191 MMboe, 37% chance of success) is the likely first well. These are undrilled prospects, not discoveries.

resource reserve update

Transocean Equinox rig contracted for the Bedout campaign, starting from April 2027, with one firm and one contingent well in Carnarvon's permits. Shortlisted: Ara, Yuma, Goats Eye, Hutton. Cost to Carnarvon is about A$20m if both drilled, funded from A$98m cash. Resolves the rig-scarcity uncertainty.

contract award

September 2025 quarter: Strike investment completed (stated as A$86m for 19.9%); cash about A$99m, no debt, US$90m Dorado carry. Bedout drilling slips from 2026 to early 2027 because suitable rigs are scarce. Net 2C resource stated as 54 MMboe.

quarterly activities report

Strike completes Tranche 2 of the Carnarvon placement: about A$34.3m for 286m shares at A$0.12, after Strike shareholders approved it on 11 September. This completes the up-to-19.9% Strike stake agreed in July. Strike also closed its A$1.7m share purchase plan.

asset acquisition disposition

Carnarvon agrees to invest up to A$89m in Strike Energy at 12c a share for up to 19.9%, in two tranches (A$52m first). This concludes the strategic review and ends the planned capital return; at least A$96m cash remains.

asset acquisition disposition

Carnarvon starts a process to potentially return up to 7c per share (A$125m) to shareholders, citing the Dorado delay and no better opportunity yet found. It would keep at least A$62m. Needs shareholder vote and an ATO ruling, expected within six months.

capital raising announcement

Santos, as Dorado operator, will not buy the identified FPSO and will not enter FEED for now, so the 2025 FID target is deferred with no new timeline. Carnarvon has over A$180m cash and the US$90m carry. It reports further Bedout exploration wells are being planned for 2026.

joint venture update

Dorado FID slips from end-2024 to 2025, with FEED re-entry later in 2024 once the joint venture secures a vessel or hull. Capex before first oil is still expected below ~US$2bn gross. Carnarvon still expects to be fully funded; cash was A$176m at 31 March.

regulatory community update

Carnarvon has monetised and exited its biorefinery business interests, with no residual liabilities. No sale price is given. This ends the slowed FutureEnergy Australia venture, consistent with the strategy of focusing on Dorado and Bedout.

asset acquisition disposition

Carnarvon says ongoing corporate costs are down over 40% on 2023 and that it expects to be fully funded for Dorado. It has engaged J.P. Morgan as financial adviser to explore options to maximise shareholder value, including alternative transactions. This follows the board's December 2023 stated intent to explore a sale.

other

Dorado partners are reshaping Phase 1 to 60,000-100,000 bopd, phasing wells and assessing idle FPSOs, to cut upfront capex below the earlier ~US$2bn gross guidance. FID-ready target stays end-2024, but Bedout drilling is deferred to at least 2025 because of scarce rigs.

regulatory community update

Rob Black, ex-Managing Director of Euroz Hartleys, joins the board from 2 April 2024 and becomes Chair on 1 July 2024, replacing Bill Foster. Gavin Ryan steps down. This continues the board renewal begun in December 2023; Foster stays as a director until a replacement is found.

director officer appointment

After talks with its two largest shareholders, Nero and Collins St, Carnarvon appoints Russell Delroy and William Barker as directors. CEO Adrian Cook and Debra Bakker retire; COO Philip Huizenga becomes CEO. New board plans cost cuts, no big acquisitions, and exploring a corporate sale or asset divestment.

director officer appointment

September 2023 strategy briefing titled 'Progressing from explorer to producer'. Carnarvon says it is screening for production or earnings-generating assets to complement Dorado and Pavo. It cites Dorado FID in 2024, A$319m liquidity, no debt, and about A$300m market capitalisation.

investor presentation

New 3D seismic interpretation high-grades five Bedout prospects (Ara, Wallace, Wendolene, Starbuck, Pavo South) holding 623 MMboe gross unrisked Pmean prospective resource. Two or three wells are planned on a semi-submersible rig; timing depends on approvals, including new consultation on environment plans.

resource reserve update

The CPC sale of 10% of Bedout completed. Carnarvon received US$58m (~A$89m) after adjustment, leaving ~A$181m cash and a ~A$138m carry, about A$319m liquidity. CPC joins the Dorado joint venture; Carnarvon's Dorado stake is now 10%. Debt process continues.

asset acquisition disposition

Carnarvon agrees to sell 10% of its Bedout assets, including Dorado, to Taiwan's CPC for US$146m: US$56m upfront plus a US$90m carry after Dorado FID. Its Dorado stake falls from 20% to 10%. Pro-forma cash is about A$178m; debt process continues. Completion is expected by end Q2 2023.

asset acquisition disposition

NOPSEMA accepted the Dorado Offshore Project Proposal, resolving the key environmental approval outstanding since 2022. It also covers tying back nearby fields such as Pavo. FID is still pending, along with the FPSO contract and funding. Carnarvon holds 20% of Dorado.

regulatory community update

Carnarvon says its top 20 Bedout prospects total over 1.5 billion boe gross (Pmean), from 100+ prospects. Pavo South rises to 66 MMbbl gross at 60% chance, from 55 MMbbl at 51%. Pavo, Ara and Starbuck are being high-graded for drilling. These are unproven prospective estimates.

resource reserve update

Dorado FEED is substantially complete, but the joint venture says inflation and supply-chain risk do not support an FID in 2022, reversing the mid-2022 target. FPSO contract is unfinished; NOPSEMA is still assessing the OPP. Carnarvon's financing and partial sell-down process continues.

joint venture update

Carnarvon booked Pavo resources: 43 MMbbl gross 2C contingent (13 MMbbl net at 30%) for Pavo North, plus 55 MMbbl gross Pmean prospective for Pavo South (16 MMbbl net, 51% chance). Adds to its 32 MMbbl net Dorado oil 2C.

resource reserve update

Apus-1 reached about 2,900m and found excellent reservoirs but no commercial hydrocarbon pool, though hydrocarbons were observed. A dry-hole outcome for the 23%-chance prospect. Pavo-1 and Dorado remain the Bedout successes, and no further Apus announcement is planned.

drilling result

Drilling began at Apus-1, 27km southwest of Pavo-1, targeting a gross mean 235 MMbbl of liquids and 408 bcf of gas at a 23% chance of success. Carnarvon's average interest is about 25%.

drilling spud

The joint venture accepted NOPTA's offer of a life-of-field Production Licence over the four blocks holding Dorado (Carnarvon 20%), with grant expected shortly. It clears a key approval ahead of a mid-2022 FID and allows tie-backs such as Pavo.

regulatory community update

The A$70m placement was successful: 234,806,987 new shares at A$0.30, settling 4 April and allotted 5 April, with trading resuming. Proceeds are for Dorado FID in 2022 and testing nearby tie-in targets including Apus-1.

capital raising announcement

Carnarvon launches a fully underwritten institutional placement of 234.8 million shares at A$0.30 to raise about A$70m, a 9.1% discount to the last close. Funds go to Dorado equity and FEED, the Apus-1 well, Pavo-1 appraisal and corporate costs. This follows the 4 March start of a financing process.

capital raising announcement

Operator Santos confirms the Pavo-1 discovery: 43 MMbbl gross 2C contingent resource for the northern culmination (Carnarvon 30%), plus 40 MMbbl gross prospective in the southern culmination at 60% chance. Santos cites tie-back breakeven below US$10/bbl. Adds numbers to the Carnarvon announcement.

drilling result

Pavo-1 (Carnarvon 30%) made a material oil discovery in the Caley Member: 46m net pay in a 60m gross column, light ~52° API oil. Pavo is 46km from Dorado and expected to tie back to it. Resolves the pending wireline question; the well continues deeper to about 4,200m.

drilling result

Dorado FEED is on track to be FID ready by mid-2022, with initial output of 75,000-100,000 bopd gross confirmed. Carnarvon has begun a formal funding process via Azure Capital: senior debt, mezzanine, or selling part of its 20% share. Capital cost is not yet defined.

investor presentation

Pavo-1 reached about 3,282m and found multiple porous sands in the Caley to Crespin, similar to Dorado. Elevated gas and resistivity at 2,944-3,001m indicate hydrocarbons. Wireline logs are needed for confirmation; cyclone precautions are delaying them.

drilling progress report

The rig is at the Pavo-1 site and about to start drilling the surface hole. Target remains 82 MMbbl liquids gross mean, 34% chance of success, 30% Carnarvon interest. No hydrocarbons expected in the upper sections.

drilling spud

Wireline logging found Buffalo-10's oil column residual and uncommercial, so the well will be left safe and the rig demobilised. The CEO calls it disappointing. This ends the Buffalo-10 hope of a 31 MMbbl attic oil target; Carnarvon's focus shifts to Pavo-1 and Apus-1.

drilling result

Buffalo-10 hit the Elang reservoir about 80m deeper than predicted, outside the pre-drill range, with a roughly 12m gross oil column indicated while drilling. Carnarvon says seismic processing has not resolved the velocity distortion in the field. Wireline logs are still to confirm.

drilling result

Buffalo-10 drilling has commenced; the top hole is drilled to about 120m after a slight tropical weather delay. This is the first Carnarvon-operated well in the Timor Sea redevelopment, with results due in coming weeks. No hydrocarbons are expected in the upper sections.

drilling spud

The Valaris JU-107 jack-up rig is contracted for Buffalo-10, finalising the rig selected in June. It is the same rig that drilled Dorado-1 in 2018. Drilling starts after the rig finishes current work in about 8-10 weeks, still subject to support services and approvals.

contract award

Santos awards the Dorado wellhead platform FEED contract to Sapura Energy, which it calls the project's last significant commitment before FID around mid-2022. Completes the FEED contract awards flagged in June. Pavo and Apus are to be drilled early next year.

contract award

Santos awards the Dorado FPSO FEED contract to Altera Infrastructure, the project's largest contract. It begins with full definition engineering. A wellhead platform contract is to follow soon, keeping Dorado on track for FID around mid-2022.

contract award

Carnarvon forms a 50/50 joint venture with Frontier Impact Group to make renewable diesel from biomass, investing A$2.6m seed capital. First production is targeted for late 2022. It is a new line outside oil and gas, which the company says will not draw on its core projects' resources.

business combination

A jack-up rig has been selected for Buffalo-10, with a letter of intent signed and the formal contract being finalised. Drilling is expected to start late October 2021. Carnarvon stays free carried for the first US$20m. Timing still depends on approvals and support services.

contract award

Santos launches Dorado FEED, the step expected this quarter. Phase 1 gross capital cost is about US$2bn, with initial gross oil of 75,000-100,000 bpd and FID around mid-2022. Santos is also seeking buyers for non-operated equity in Dorado.

joint venture update

The Buffalo farm-out to Advance Energy is complete: it now holds 50% and has met its funding requirement, so Carnarvon is free carried on Buffalo-10 up to US$20m. The well is now said to be on track for late 2021, subject to securing a rig.

farm in farm out completion

The Noble Tom Prosser rig, used on the 2019 Dorado-2 and -3 appraisal wells, is contracted for Pavo-1 (101 MMboe gross target) then Apus-1 (307 MMboe), starting late 2021. This firms up the drilling plan; success could add to Dorado resources, and the wells remain unproven.

contract award

December quarter report: cash A$106m. Dorado phase 1 is expected to deliver about 30 million barrels net to Carnarvon. FEED entry is now planned for 1H 2021 and FID for 1H 2022, later than the 2021 FID previously targeted. Apus and Pavo drilling is planned for late 2021 or early 2022.

quarterly activities report

Binding deal: AIM-listed Advance Energy can earn up to 50% of Buffalo by funding the Buffalo-10 well (up to US$20m), at 2.5% per US$1m. Carnarvon stays operator. Drilling targeted 2H 2021. Needs at least US$10m by 31 March 2021. Ends the long-running farm-out search.

farm in farm out agreement

New 3D seismic splits the old Apus feature into three prospects, Apus, Petrus and Kepler, with 293 million barrels of oil combined (gross, Pmean, prospective). Apus alone is 235 million barrels, with 23% chance of success. Drilling depends on business conditions.

resource reserve update

Chairman Peter Leonhardt, chair since 2005, will retire after the 2020 AGM. Director Bill Foster, on the board since 2010, will take over as chair, and a search for a new non-executive director has begun.

director officer appointment

Santos, the Dorado operator, awarded pre-FEED contracts to three FPSO contractors, and wellhead platform interest was strong. FID is now targeted for 2021, subject to markets, versus end 2020 before. Carnarvon holds 20%.

contract award

Carnarvon has lifted its equity in the WA-155-P (Outtrim) permit to 70% and become operator. It sees gas potential in the Belgravia prospects and a larger 'JBS structure', and plans to mature the project for farm-out. Earlier it held 28.5%.

asset acquisition disposition

Carnarvon says Dorado engineering and pre-FEED work continues broadly to plan, but 2020 seismic acquisition will be deferred and 2021 exploration drilling in the Keraudren area depends on market conditions. A first sign of COVID-19 and low oil prices trimming exploration plans; cash remains A$119m, no debt.

other

Operator Santos released early concept select information: a liquids development with gas re-injection is the preferred Dorado model, with FEED still due early 2020. Carnarvon (20%) has begun talks with banks about senior debt for most of its share, and oil traders have shown interest in structured finance. A formal process comes after concept is set.

joint venture update

Dorado-3 Caley test flowed about 11,100 bbl/day oil plus 21 MMscf/day gas, limited by rig equipment, implying about 30,000 bbl/day per production well. This ends the 2019 appraisal drilling; management now turns to development of Dorado, in which Carnarvon holds 20%.

flow test result

Dorado-3 Baxter flow test reached about 48 MMscf/day gas and 4,500 bbl/day condensate (about 15,300 boe/day), above expectations and limited by surface equipment. Caley oil test is next. A positive step toward development of Dorado, where Carnarvon holds 20%.

flow test result

Dorado-3 wireline logs confirm oil in the Caley (about 53 m net pay, linked to Dorado-1 and -2) and gas in the Baxter. Crespin had unexpected hydrocarbons; Milne was water wet. Flow tests of Caley and Baxter go ahead; the company says Milne and Crespin changes are minor.

drilling result

Carnarvon signed the Buffalo production sharing contract with Timor-Leste in Dili, and Australia and Timor-Leste then ratified the maritime boundary treaty on 30 August. Carnarvon keeps 100% of the Buffalo oil field on terms equivalent to Australia's, and the three-well environmental plan carries over.

material agreement

The placement succeeded: 202.6m new shares at 39c (about A$79m), settling 29 July. The share purchase plan, aiming for about A$5m, opens 1 August. Completes the raise announced the day before.

capital raising announcement

Carnarvon launched a fully underwritten A$79m placement at 39c, an 8.2% discount to the last close, plus a roughly A$5m share purchase plan. Funds go to Dorado appraisal, FEED and its equity share of the initial development.

capital raising announcement

Roc South-1 finished at about 4,910 m with no producible hydrocarbons in Crespin and Milne either, so the well is a dry hole, the first of eight in this basin. Reservoir quality was good. Dorado plans are unaffected, per the company; rig moves to Dorado-3.

drilling result

Independent review by ERCE puts Dorado gross 2C contingent resources at 344 MMboe (162 MMbbl liquids, 748 Bcf gas), up from 283 MMboe after Dorado-1. Carnarvon's net 2C is 69 MMboe. FID still targeted end-2020.

resource reserve update

Roc South-1 found the Caley and Baxter reservoirs but wireline logs show no producible hydrocarbons, so it adds no resource to Dorado. The deeper Crespin and Milne will still be tested; Dorado plans are unaffected, per the company.

drilling result

Roc South-1 has started, about 15 km from Dorado-1, after Dorado-2 operations finished. It is an exploration well targeting Caley, Baxter, Crespin and Milne, planned to about 5,000 m. Dorado-3 follows. Carnarvon holds 20%.

drilling spud

Dorado-2 confirmed a major resource: an oil-water contact in the Caley as planned (about 40 m net oil pay), gas-condensate in the Baxter, and a water-wet Crespin. Raises confidence in a fast-tracked Caley oil development. Updated volumes to follow.

drilling result

A new 3D seismic survey (Keraudren 3D, about 3,090 sq km, ~70 days) has started over Dorado, Roc and nearby prospects including Pavo and Apus. Data is due in early 2020 to support the late-2020 FID; this addresses the earlier Apus seismic need.

regulatory community update

Dorado-2 drilling has begun, about 2.2 km from Dorado-1, with surface casing set. It targets a down-dip position to find hydrocarbon contacts, with a planned depth of around 4,550 m. Carnarvon holds 20%.

drilling spud

The placement is completed: A$50m before costs from 151.6m new shares at 33c, with Euroz and RBC as joint lead managers. It funds Dorado-2 and -3, Roc South-1 and studies; management calls the funding position robust.

capital raising announcement

Carnarvon launches a ~A$50m placement of 151.6m shares at 33c, a 10.8% discount to the last close. It funds Dorado-2 and -3, Roc South-1, engineering studies and possible 3D seismic. About 13% of shares on issue; not underwritten.

capital raising announcement

Roc South-1 is added to the 2019 programme, to be drilled straight after Dorado-2, before Dorado-3. Target is 74 MMboe gross Pmean (undrilled) with 63% chance of success. Carnarvon holds 20%. Follows the October 2018 prospect estimates.

drilling scheduled

The Noble Tom Prosser jack-up rig is secured for two firm Dorado appraisal wells, the first around April 2019. Partners are Carnarvon 20% and Santos 80% operator. Moves Dorado from discovery toward a 2020 investment decision.

drilling scheduled

Carnarvon assessed three oil prospects near Dorado: Roc South (56 MMbbl gross Pmean recoverable, 63% chance of success), Pavo (82 MMbbl) and Apus (612 MMbbl). They are prospective, undrilled resources. Delivers the follow-up details promised after Dorado.

resource reserve update

Carnarvon commented on Santos's planned US$2.15bn cash acquisition of Quadrant, its Phoenix partner holding 70-80%. It welcomes Santos as incoming partner, notes the value attributed to Phoenix is not disclosed, and cites Dorado 2C oil as third largest on the North West Shelf.

other

Carnarvon booked Dorado gross contingent resources: 2C 171 MMbbl oil, 16 MMbbl condensate and 552 Bscf gas (283 MMboe); 1C 128 and 3C 566 MMboe. CVN's 20% net 2C is 57 MMboe. Resolves the pending Dorado resource revision.

resource reserve update

Phoenix South-3 found a 131 m gross hydrocarbon column in the Caley, but only ~16 m net reservoir at 8% porosity. Sampling recovered no hydrocarbons, and permeability was at the low end of expectations. Core analysis over months must show whether it can flow commercially; rig being released.

drilling result

Wireline logging at Dorado-1 found more light oil in the Crespin (22 m net) and Milne (18 m net) Members, lifting total net hydrocarbon pay to 132 m across four zones. Adds to the July Caley oil discovery; volume estimate to follow.

drilling result

Dorado-1 found a significant oil discovery in the Caley: 79.6 m net pay in a 96.1 m column, light 49.6° API oil, no water contact. This was previously expected as gas-condensate; a revised contingent oil resource is promised after drilling. Baxter sands also hydrocarbon-bearing.

drilling result

Dorado-1 (CVN 20%, operator Quadrant) has started drilling, with the 30-inch casing set and 17.5-inch hole next. It targets the Caley at 545 Bscf plus 30 MMbbl condensate (125 MMboe Pmean), under 20 km from the Roc wells.

drilling spud

Carnarvon raised A$16m via a placement of about 123m shares at 13c, a 25.7% discount to last close, plus a share purchase plan of up to A$4m. Funds Buffalo-10 drilling, now expected March to September 2019, and working capital.

capital raising announcement

Buffalo (100% CVN) redevelopment plan: Buffalo-10 production well to confirm attic oil, with three wells tied to a leased FPSO. Independent estimate puts capex below US$150m and 31 MMbbl (2C) at about US$2.2bn revenue at US$73 Brent. Dili office opened; funding not yet secured.

material agreement

Drilling has started at Phoenix South-3 (CVN 20%, operator Quadrant), the rig having drilled the 42-inch hole to about 240 m. It targets the Caley gas-condensate (143 MMboe Pmean prospective) found in Phoenix South-2. About 90 days to roughly 5,500 m; no flow test planned.

drilling spud

Australia and Timor-Leste signed a maritime boundary treaty placing the Buffalo field (WA-523-P, 100% CVN) in Timor-Leste jurisdiction. Carnarvon says its title and rights are preserved on equivalent fiscal terms. A production sharing contract is now needed, and the treaty still needs ratification by both countries.

regulatory community update

Carnarvon is awarded permit AC/P63 (Eagle Project), 585 km2 in the Southern Vulcan Sub-basin in about 100-200 m of water, its second Vulcan permit after Condor. Jurassic and Cretaceous oil leads only; no resource figure given.

asset acquisition disposition

Carnarvon raised the Labyrinth (WA-521-P, 100% CVN) prospective resource after new petrophysical work, to over 1.5 billion barrels unrisked Pmean across eight prospects, led by the renamed Ivory prospect at over 420 MMbbl. Chance of discovery is 13-18% per prospect, and 3D seismic is expected to refine drilling locations.

resource reserve update

Woodside's Swell-1, next to Belgravia (CVN 28.5%), found about 450 m of gas in tight reservoir, not currently commercial. This resolves the awaited test: it shows a working Triassic system, and Belgravia is about 650 m shallower, so reservoir may be better. Further work is needed.

drilling result

Quadrant has signed the ENSCO-107 jack-up for Dorado-1 (CVN 20%), expected to start around May 2018, with Phoenix South-3 around March 2018. The Caley primary target holds a mean 545 Bscf gas and 31 MMbbl condensate (prospective, unproven). Rigs are now secured for both wells.

drilling scheduled

Carnarvon is awarded permit AC/P62 (Project Condor), 1,512 km2 in the Southern Vulcan Sub-basin, Bonaparte Basin, in about 100 m of water. It is the company's first Vulcan permit, with Jurassic oil leads identified. Early-stage; no resource figure given.

asset acquisition disposition

Loyz announces it will settle its US$3.95m debt to Carnarvon by issuing 331.65 million new Loyz shares at S$0.01615, about 17.85% of the enlarged company, subject to Loyz shareholder approval. This is the share fallback rather than the cash payment, and Carnarvon's 30 June deadline had earlier been extended.

asset acquisition disposition

Independently audited Buffalo (100% CVN) contingent resource is 31.1 million barrels best estimate (2C), range 15.3 to 47.8 million. Scoping work says redevelopment is economic even at 1C. A production licence and development plan are still needed before reserves.

resource reserve update

Dorado-1 is pushed from 2H 2017 to mid-2018 to align with the operator's 2018 campaign; Phoenix South-3 redrill is expected early 2018. An insurance claim on Phoenix South-2 is expected to cover most of that cost. Roc pre-FEED work has begun.

drilling scheduled

Interpretation of reprocessed seismic on 100%-owned WA-521-P identifies prospects totalling about 1.5 billion barrels unrisked mean prospective resource. Labyrinth (420 MMbbl) and Mouse (361 MMbbl) are the largest; chance of discovery is 34% and 26%. Unproven prospects, not discoveries.

resource reserve update

Carnarvon settles the Thai sale deferred consideration with Loyz for a US$4.0m (about A$5.3m) lump sum due by 30 June 2017, plus 12% of any sale proceeds above US$45m. Shares in Loyz's parent are the fallback. Replaces a receivable written down to nil in December.

asset acquisition disposition

Phoenix South Caley prospective resource raised 32% to 489 Bscf gas and 57 MMbbl condensate (143 MMboe, gross mean), due to higher pressure and more liquids seen in Phoenix South-2. Delivers the update promised after that well; Carnarvon holds 20%. A possible stratigraphic upside needs more drilling.

resource reserve update

Half-year loss A$32.0m versus a A$3.3m profit a year earlier. It includes a A$22.2m non-cash write-down of the Thai sale receivable after Loyz missed its December payment and got a 12-month delay, plus A$10.3m written off for Outtrim East-1 with no further plans in that permit.

half year report

The joint venture has committed to long-lead items for Dorado-1 in WA-437-P (Carnarvon 20%), with drilling expected in the second half of 2017. Primary Caley target is 545 Bscf gas and 31 MMbbl condensate (mean prospective). Could serve as a tie-in point for Roc and Phoenix South.

drilling scheduled

Non-executive director Ted Jacobson retires immediately, citing health and family. He joined the board in 2005, led the Thailand oil development as former CEO and secured the Phoenix permits. He remains available for technical support.

director officer appointment

Phoenix South-2 found a 39m gas and condensate zone (5,176-5,215m) near the top of the Caley, but high pressures stopped drilling. Up to 185m more potential reservoir is untested. Company says higher pressure may mean larger volumes; resources to be updated. Carnarvon holds 20%.

drilling result

Phoenix South-2 drilled through the Barret sandstone with strong shows, but preliminary logs show no live oil column in this fault block. Barret oil volume range likely falls to about two-thirds of the 14 November range. Caley gas target is unaffected; Carnarvon holds 20%.

drilling progress report

Roc, Phoenix and Phoenix South gross 2C contingent resources are 109 million boe (332 Bscf gas, 20 MMbbl condensate, 31 MMbbl oil), around minimum economic levels. Phoenix South-2 targets 470 Bscf and 25 MMbbl in the Caley, mean prospective. Carnarvon has 20%.

resource reserve update

Phoenix South-2 will start within about 7 days, using the Ocean Monarch rig straight after Roc-2. It targets the Phoenix South oil field and the deeper Caley gas-condensate, to about 5,500m. Carnarvon pays the first A$5m of an expected A$20m net well cost, with a small promote offset against future production.

drilling scheduled

Roc-2 flowed up to 51.2 million scf/day of gas and 2,943 bbl/day of condensate (about 11,500 boe/day), limited by test equipment. Company says results exceeded expectations. It says a development well could exceed 100 MMscf/day. Resolves the Roc-2 flow test thread positively; Carnarvon holds 20%.

flow test result

Roc-2 wireline logs confirm 60m gross gas and condensate sands, 30m net reservoir, with 100-350 mD permeability. Condensate is about 50-60 bbl per million cubic feet, similar to Roc-1. Pressure data suggests Roc-1 and Roc-2 are separate structures in some sands. Flow test expected in about three weeks.

drilling result

Carnarvon is awarded WA-524-P, a 1,210 km2 permit on the Enderby Terrace near the Wandoo and Legendre oil fields. Three leads are identified. The work program is described as modest, adding a new exploration permit to the portfolio.

asset acquisition disposition

Roc-2 confirms hydrocarbon-bearing reservoir in good quality rock in the Caley section, based on logging-while-drilling data. The well is at about 4,610m, heading to about 5,250m. Volumes and flow rates await wireline logging and testing. Carnarvon holds 20%.

drilling result

Roc-2, the appraisal well on the Roc gas-condensate discovery, began drilling on 9 July 2016. It targets about 5,250m with 120m of core, taking about 60 days plus about 40 days of testing. Carnarvon holds 20%.

drilling spud

Outtrim East-1 finished at 1,441m with 91m of core recovered. Early fluorescence data indicates hydrocarbons in the target interval. Volumes need months of lab work. Partners skipped the full logging suite, judging data sufficient. Carnarvon holds 28.5%.

drilling result

Outtrim East-1 began drilling on 18 June 2016, targeting 1,440m in about 25 days. Carnarvon holds 28.5% and Quadrant operates. Hydrocarbon results follow wireline logging; recoverable volume estimates will take several months after the well.

drilling spud

Roc-2 is on schedule for late June or early July 2016, with coring and flow testing, to 5,250m. Roc-1 lab results beat expectations: permeability averaging about 130mD, up from 10-100mD, and condensate ratio about 60 bbl/MMcf, up from 20-40.

drilling scheduled

Carnarvon acquires 100% of WA-523-P, about 4,220 km2 in the far north of Western Australian waters, containing the Buffalo oil field and the Bluff-1 and Buller-1 oil discoveries. Work is seismic reprocessing, taking about 12 months. Total acreage now about 35,000 km2.

asset acquisition disposition

Carnarvon is awarded 100% of WA-521-P, a Roebuck Basin exploration permit next to the Phoenix and Roc discoveries. The bid is low-cost: 4,000km of reprocessed 2D seismic in the first three years. Adds a new exploration permit to the portfolio.

asset acquisition disposition

Independent audit by RISC puts Roc gross contingent resource at up to 372 Bscf gas and 18 million barrels condensate (3C), plus high-case prospective 328 Bscf and 16 million barrels. Partners agreed to appraise; Roc-2 planned early second half 2016. Fulfils the volume promise made earlier.

resource reserve update

Carnarvon takes a 35% interest in three Barrow sub-basin permits (TR/3, WA-155-P, WA-486-P), with Quadrant on 65% as operator. This is its first new project since the Cerberus blocks. Outtrim East-1 is planned around mid-2016, costing about A$10m net to Carnarvon, plus a modest payment to the vendors.

asset acquisition disposition

Roc-1 has finished: the rig has left, the well was on budget, and lab analysis confirms condensate-rich gas at the top end of 20-40 barrels per million cubic feet. Recoverable volumes are due within about six weeks. A$30-40m (gross) of drilling carry remains for any further well in WA-437-P. No Roc-2 decision yet.

drilling result

Roc-1 is a condensate-rich gas discovery: 10m net hydrocarbon pay within a 40m gross sand (4,380-4,420m), condensate ratio estimated at 20-40 barrels per million cubic feet. This updates the earlier hint of light oil. The partners will not deepen the well, preferring a later test nearer the structure's crest.

drilling result

Roc-1 shows a 40m gross sandstone (4,380-4,420m) with hydrocarbon indications and inferred light oil, 10-13% porosity. The joint venture will deepen from 4,750m to about 4,950m before logging. Seismic suggests a structure up to 54 km2. Preliminary; wireline logs will confirm.

drilling result

Roc-1 shows minor hydrocarbons in the upper sands (3,750-4,200m), likely not commercial. Deeper, 4,200-4,435m, gas readings and resistivity point to hydrocarbons and a working petroleum system, with gas levels like Phoenix South-1. Wireline logs at total depth will confirm.

drilling result

Roc-1 spud on 24 November 2015, a week after the ~17 November expectation. Drilling to 4,700m is expected to take 35-40 days. Carnarvon holds 20% in WA-437-P and is carried for the well.

drilling spud

Quadrant has received the Tom Prosser rig and Roc-1 is expected to spud around 17 November 2015. Drilling to 4,700m should take 35-40 days. If successful, the well will be re-entered in Q3 2016 for flow testing and coring. Carnarvon holds 20% in WA-437-P.

drilling scheduled

Macquarie/Brookfield completed buying Apache's Australian business on 5 June, renamed Quadrant Energy, and confirmed Roc-1 for Q4 2015. Phoenix permits get a two-year extension to August 2017. Roc-1 is estimated at about US$45m, within the US$70m carry. Capreolus 3D is about 60% acquired.

joint venture update

Independent assessor DeGolyer and MacNaughton puts recoverable oil in the Phoenix 3D area at 48-232 million barrels gross, best 104m. Phoenix South contingent resource is 19m best; Roc prospect 42m best, 42% chance of success. Roc-1 now planned for Q4 2015, after earlier mid-2015 timing.

resource reserve update

Carnarvon completed the sale of its remaining 20% Thai interest to the Berlanga Group, base price US$50m plus completion adjustments. Cash is about A$108m (at 0.78 AUD/USD) and the US$32m Loyz receivable is kept. Resolves the pending December 2014 sale; the company is now North West Shelf-focused.

asset acquisition disposition

Joint venture is buying large seismic datasets to cover most of the ~22,000 km2 Phoenix permits: Capreolus 3D (about 5,100 km2) began 12 January, plus Zeester 3D and Bilby 2D. Carnarvon will spend about A$10m from existing cash to find more prospects.

joint venture update

Carnarvon cannot yet size Phoenix South-1; incomplete lab data (special core analysis not started) pushes oil-in-place and recoverable estimates to about end of Q1 2015, missing the end-2014 target. Oil confirmed as light black oil near 47 API. Roc-1 now expected mid-2015.

drilling result

Carnarvon agreed to sell its remaining 20% of the Thai assets to the Berlanga Group for US$58.21m (A$68.5m) cash, completion due by 16 February 2015. Cash is forecast to exceed A$100m afterwards, and the US$32m Loyz receivable is retained. Leaves the company focused on the North West Shelf.

asset acquisition disposition

FY June 2014: revenue A$23.2m (up from A$18.3m) and net profit A$16.8m versus an A$8.4m loss a year earlier. Net tangible assets 7.3 cents per share; no dividend. The chairman calls the Phoenix South-1 oil discovery a highlight.

annual report

Apache and JX Nippon committed to drill Roc-1 in WA-437-P, expected in 2015, funded to US$70m gross, so Carnarvon keeps a carried 20%. Apache also exercised its option over WA-436/438-P, taking 40% and operatorship and leaving Carnarvon with 30%.

farm in farm out completion

Phoenix South-1 is an oil discovery: four oil columns, 66 m net pay, light 46-48 degree API oil, and permeability pointing to a productive reservoir. Recoverable volumes are due by end-2014. Carnarvon's net well cost stays about A$6m. It resolves the open drilling question.

drilling result

Phoenix South-1 saw gas and signs of liquid hydrocarbons from the main target sand, intersected near 4,160 m, before a bit broke at 4,321 m. A second minor sidetrack is needed. Management stresses the signs are preliminary and unquantified.

drilling result

A casing tool stuck in Phoenix South-1, so Apache must cut the casing and drill a sidetrack, adding about 20 days. If the cost cap is exceeded, Carnarvon's extra cost is estimated at about $4m, which it says it can comfortably fund.

drilling progress report

Carnarvon is awarded two more Barrow Sub-basin blocks, EP-490 and TP/27, about 1,750 km2 at 100% and as operator, on trend with the Stag and Wandoo oilfields. Commitments are limited to seismic reprocessing and studies. Together with EP-491, this extends its Australian acreage.

asset acquisition disposition

Carnarvon is awarded permit EP-491, about 1,450 km2 in the Barrow Sub-basin next to the Harriet oil and gas fields, at 100% and as operator. Shallow water suits cheap jack-up drilling, and work commitments are minimal. It supports the Australian focus.

asset acquisition disposition

Phoenix South-1 spudded on 25 May 2014 on the North West Shelf, the well Carnarvon is free-carried on (20%). Drilling is expected to take 60-70 days to 4,500 m, possibly 5,000 m if gas is found. It will be plugged and abandoned afterwards.

drilling spud

The sale of half of Carnarvon's 40% Thai interest to Loyz is completed. Carnarvon received US$33m, leaving cash of about A$50m, and keeps 20% plus up to US$32m in future payments. Net reserves are cut to 1.6 MMbbl proved and 5.9 MMbbl proved and probable.

farm in farm out completion

Independent review at 31 December 2013 shows Thai reserves net to Carnarvon (40%) of 3.2 MMbbl proved and 11.8 MMbbl proved and probable, in line with the prior year's 2P of about 12.2 MMbbl. Field output is stable at about 3,000 bopd gross after choking back.

resource reserve update

Carnarvon agrees to sell half of its 40% Thai interest (20%) to Loyz Energy for up to US$65m. US$33m is paid on completion and up to US$32m comes from 12% of the buyer's revenue, capped at US$10m a year. Cash is forecast to exceed A$50m. Completion is subject to conditions.

asset acquisition disposition

Half-year to 31 December 2013: revenue A$9.6m, net loss A$4.1m after writing off A$4.9m of exploration. Carnarvon will withdraw from the L52/50 and L53/50 Thai permits after finding no farm-in partner. Cash is about A$20m, and focus shifts toward Australia.

half year report

Apache says the Phoenix South-1 spud is now likely in the second quarter of 2014, pushed back from the December-February window. Apache cites its other projects. The MD notes the later date lowers cyclone risk and the chance of exceeding the well cap.

drilling scheduled

Apache will fund Carnarvon's share of Phoenix South-1 and contingent Roc costs up to a raised cap of US$70m per well (from US$50m). Apache gets an option, by 3 July 2014, over 40% of WA-436-P and WA-438-P, cutting Carnarvon to 30%. Carnarvon says it is now fully funded.

farm in farm out agreement

The entitlement offer was heavily undersubscribed: applications for 48.5m shares raised A$3.1m, against 187.6m shares offered. That left 139.0m shares unsubscribed, well short of the roughly A$12m target.

capital raising announcement

Prospectus for the 1-for-5 non-renounceable entitlement offer at A$0.064 per share, with a free A$0.10 option per share expiring 29 December 2015, to raise up to about A$12m. Offer closes 17 December. Not underwritten.

capital raising announcement

Carnarvon launches a 1-for-5 entitlement offer at A$0.064 with a free A$0.10 option, to raise up to about A$12m. Funds are to cover possible Phoenix South-1 costs beyond the US$50m free-carry, such as deeper drilling or cyclone delays. Non-participants are diluted.

capital raising announcement

Chapman's assessment at 31 Dec 2012 gives Carnarvon net 1.5 MMbbl developed, 2.4 MMbbl proved undeveloped, 8.3 MMbbl probable and 21.3 MMbbl possible. Company says overall levels are similar to the prior year's Gaffney Cline assessment. Development needs drilling and approvals.

resource reserve update

NOPTA approved and registered the Phoenix farm-out. Apache (operator, 40%) and JX Nippon (20%) join Carnarvon (20%) and Finder (20%) in WA-435-P and WA-437-P. Past-cost payment is due in the March quarter, and Phoenix South drilling is tentatively late 2013. Completes the October deal.

farm in farm out completion

December quarter: cash A$16.4m, no debt. Four of ten ALRO wells restarted 26 December, but the exit rate was 1,700 bopd gross against the 3,000 target, which the company says is deliverable but with uncertain timing. Sandstone development is delayed, the new NSE volcanic wells await equipment, and the drilling rig stands down for about two months.

quarterly activities report

Carnarvon (55%) and Sun farm out 100% of the L20/50 Thai block to Siam Moeco (Mitsui subsidiary), ending its search for partners. Carnarvon's share is 55% of US$8.5m on commercial production plus 55% of a 2% royalty capped at US$10m. Subject to government approval.

farm in farm out agreement

Phoenix farm-out signed: Apache takes 40% and operates, JX Nippon 20%, in WA-435-P and WA-437-P. Carnarvon keeps 20% (from 50%) and is carried below an agreed cap on Phoenix South (firm) and Roc (contingent), plus a past-cost payment. Resolves the slipped deal.

farm in farm out agreement

Carnarvon said it would raise up to about A$15.0m by placing up to 182.9m shares at A$0.082. A$8.4m is unconditional and A$6.6m needs shareholder approval at a meeting expected on 16 November. A Share Purchase Plan capped at A$5m at the same price will follow, with proceeds funding mainly Thai drilling.

capital raising announcement

New Thai operator is ECO Environmental Investments, a Towngas subsidiary. WBEXT environmental approval is received, ending the long delay, and drilling has resumed at NS-4A and WBEXT volcanic appraisal, with sandstone development to follow.

joint venture update

Pan Orient agreed to sell its 60% of the Thai concessions for US$170m plus about US$8m of working capital adjustments. Carnarvon said this implied US$113m (A$0.16 per share) for its 40%, 35% above GCA's US$84m proved value, with operations handed over within six months.

asset acquisition disposition

Independent GCA certifies Thai reserves at 31 Dec 2011: proved 3.8 MMbbl (down from 4.7) worth US$84m, A$0.12/share; proved plus probable 12.1 MMbbl (down from 20.4) worth US$222m, A$0.32/share. Confirms the expected downgrade, citing weak 2011 well results and 400,000+ bbl produced.

resource reserve update

Half-year to December 2011 shows a A$2.5m loss against a A$4.8m profit a year earlier. Revenue fell 52% to A$17.3m. The loss includes a A$3.4m exploration write-off and a A$5.5m deferred tax expense. No dividend, no debt.

half year report

December quarter Thai production averaged 954 bopd net; current rate is about 1,140-1,150 bopd net. Inflow control devices are now in four wells, all producing above prior rates. Sandstone approval slips to February 2012. The 2012 plan is 31 wells, about A$18m net, funded from operating cash flow.

production update

Thai joint venture says an inflow control device on the Bo Rang pilot well lifted output over 300%, from 50 to over 200 bopd gross. Production is now about 1,000 bopd net. L33-2A deep volcanic test recovered only water. Sandstone approval is due 30 Dec.

production update

Phoenix operator Finder's update puts Phoenix South and Roc prospects at about 5.5 Tcf each (high-side, not assessed by Carnarvon), alongside 870 Bcf for the existing Phoenix gas. Joint farm-out is planned to start Q1 2012, with drilling possibly 2012/13.

resource reserve update

September quarter net production was 91,892 bbls (999 bopd), down 2%, with revenue A$8.66m and cash A$12.3m, no debt. The joint venture expects Gaffney Cline to report lower reserves at 31 Dec 2011, due to L33-2 and WBEXT results; WBEXT sandstone drilling slips to early 2012.

quarterly activities report

NSE F6 well flows about 1,000 bopd gross (400 net), the first high-rate well in that field, and three follow-up wells are planned. Thai production is now 1,300 bopd net. WBEXT sandstone drilling is delayed to January 2012 by environmental approvals.

drilling result

FY2011 net profit was A$2.16m, down 85% from A$14.4m, after A$11.2m of exploration write-offs. Revenue fell 16% to A$54.8m. No dividend. Auditor is now named as Crowe Horwath, and cash is A$14.8m.

annual report

WBEXT-1F found two new sandstone pools (D sand producing about 83 bopd gross), and WBEXT-2BST1 is producing a restricted 1,100 bopd gross. Thai production is 3,365 bopd gross (1,346 net). Several other wells are being tested or drilled.

drilling result

CEO Ted Jacobson retires from the executive role on 30 June 2011 after about five years, becoming a non-executive director and consultant. Adrian Cook, previously General Manager (Corporate), becomes CEO and Managing Director from 1 July on A$500,000 fixed pay. Philip Huizenga takes a growth-focused role.

director officer appointment

GCA certified Thai 2P reserves at 20.4 MMbbl net at 31 Dec 2010, down 17% from 24.5 MMbbl. New WBExt (5.5) and L33 (1.9) additions were outweighed by a 10.5 MMbbl Na Sanun East downgrade. 1P is 4.7, 3P 51.9; 2P NPV A$307m, A$0.45 per share.

resource reserve update

Krai Thong-1 (37 MMbbl gross target) will be plugged and abandoned: wireline testing found water as the mobile fluid. Chalawan drilling is deferred. This is the second dry L20/50 well after Tapao Kaew; reservoir quality and seals were good, and a basement fracture network was noted.

drilling result

Tapao Kaew-1, Carnarvon's first operated Thai exploration well on L20/50 (21 MMbbl gross target), reached 1,792 m and found no hydrocarbon-bearing reservoir. It will be plugged and abandoned. A lower section was inconclusive due to failed logging tools. Rig moves to Krai Thong.

drilling result

Thai joint venture (Carnarvon 40%) proposes a 2011 budget of $26m net for up to 34 wells, and Carnarvon targets 1.0-1.5 MMbbl a year. January sales averaged 1,300 bopd net, with ~1,200 bopd net shut in awaiting the WBEXT licence, expected within 20 days. Water cut at WBEXT-1C stabilised at 83%.

production update

Carnarvon's first operated Thailand exploration well, Tapao Kaew-1 on L20/50, spudded late January and was drilling at 112 m on 1 February. Target depth is about 1,715 m, with 21 MMbbl gross potential and reaching depth in about 12 days.

drilling spud

Thailand update: WBExt-2AST1, WBExt-3 and WBExt-4 volcanic tests were sub-commercial. WBExt-1C, the main producer, saw water breakthrough on 5 January, cutting it from 3,400 to 2,300 bopd. Field output fell to ~4,700 bopd gross, ~1,900 bopd net to Carnarvon. Contradicts earlier hopes for the extension.

drilling result

WBEXT-1A's 3,000 bopd test rate has been choked back to 200 bopd because of water, and WBEXT-2ST2 stopped flowing, possibly separate from the WBEXT-1 pool. WBEXT-1C is producing 3,500 bopd; L33 wells began selling on 20 Nov (1,450 bopd combined). Management still expects 1-1.5 MMbbl annual guidance to be met.

drilling progress report

Independent estimate (GCA) puts contingent resources over the new WBEXT and L33 discoveries at 10.3 million barrels net (2C) and prospective resources at 4.5 million barrels net. Carnarvon expects year-end reserve additions to more than offset the expected NSE-F1 downgrades; WBExt-1C to be drilled.

resource reserve update

WBExt-1A flowed 5,300 bopd gross (2,120 net) over 62 hours from a deeper volcanic zone, a record for onshore Thailand. It is shut in awaiting approval of a 90-day test; a WBEXT production licence application is planned for September.

well test result

WBEXT-1 has averaged 3,360 bopd gross over 15 days of its 90-day test; WBEXT-1A is setting casing above a deeper volcanic zone. Bo Rang B results matched expectations, but NSE-F1 appraisal will likely cut its 2P to under half of 4.8 million barrels net and remove all 3P.

drilling progress report

Tuatara-1, Carnarvon's first New Zealand well (10%), reached 1,911 m and is being plugged and abandoned. Only minor oil shows at 1,790-1,850 m, and logs found no zones of economic potential. The 80 million barrel target was not realised. Dry hole.

drilling result

L33-2 tested 2,370 bopd gross (948 net), proving a second oil-bearing well in L33. WBEXT-1 is now on a 90-day production test, lifting output to 7,600 gross (3,040 net). Another 3,470 gross is shut in awaiting a production licence, application targeted early September.

well test result

Two Thai exploration wells flowed oil: L33-1 about 1,100 bopd gross (440 net) in L33, the first commercial discovery there, and WBEXT-1 over 2,500 bopd gross (1,000 net) in L44. Together about 3,600 bopd. Sales need production licences; appraisal wells follow.

well test result

Carnarvon confirms Tuatara-1, its first New Zealand well, started drilling on 28 July in PEP 38524 and was at 160 m. The target is the Moki Sandstones, to a proposed 2,025 m. Carnarvon holds 10%. Spud was expected late July.

drilling spud

Carnarvon farms out WA-399-P: Apache takes 60% and operatorship by funding a 3D seismic survey in late 2010, replacing planned 2D. Carnarvon falls from 50% to 13%, receiving cash from Jacka. Resolves the pending Jacka thread; frees budget for new projects.

farm in farm out agreement

Carnarvon farms into New Zealand's PEP38524 to earn 10% by funding part of the Tuatara-1 well, targeting 80-100 million barrels with about 25% chance of success. Its share of cost is US$2.4-2.8m. Needs NZ government approval. New country for Carnarvon.

farm in farm out agreement

Five new wells extended the Bo Rang North oil envelope but did not deliver the expected 400 bopd each. Output stays about 6,500 gross (2,600 net). L44W-A14 found little oil near the 3P limit. Only 6-9 more development wells are now planned for 2010, down from 18.

drilling result

Carnarvon wins 100% of new permit WA-443-P offshore WA, next to its four 50% Phoenix permits, giving five Bedout Sub-basin permits over 28,300 km². Firm work is 1,400 km of 2D reprocessing. Phoenix surveys cost about A$3m net, with a farm-out planned afterwards.

asset acquisition disposition

Year-end 2009 audit by Gaffney Cline lifts net 2P reserves 48% to 24.5 million barrels (up 9.0m before 2009 production of 1.1m). 1P is 6.4m and 3P 57.0m. Confirms the expected increase from the 2009 Bo Rang North discoveries.

resource reserve update

Carnarvon finished interpreting 550 km of L20/50 seismic, identifying 23 leads across five play types. Five to six are high-graded; one firm and two contingent wells are planned for Q4 2010, subject to approvals. Continues the early-February review thread; no well drilled yet.

drilling scheduled

Carnarvon signs the L52/50 and L53/50 concessions in Thailand (about 6,950 km², 50% with operator Pearl Oil). Three-year commitment is about US$2.5m gross, US$1.3m net. This completes the earlier applications and adds new acreage outside the Phetchabun Basin.

material agreement

Bo Rang North production licence is granted over about 39 km² covering L44-W, Bo Rang A and B and NSE-F1, for 20 years. This resolves the key open thread. Environmental approval also covers 18 drilling pads (up to 54 wells), with construction starting January.

regulatory community update

Government approves the award and transfer of the four Bedout Sub-basin permits, WA-435 to 438-P. Carnarvon now holds 50% of each, with Finder holding the rest, completing the swap agreed in heads of terms. Year 1 work is accelerated to about 1,100 km² of 3D seismic in 2010.

asset acquisition disposition

Bo Rang B horizontal well BR-3D1 flows 700 bopd at 446 m, confirming both Bo Rang A and B commercial. L44-W4ST1 is producing 650 bopd on test; L44-W3ST1 was unsuccessful (water only). Si Thep-2 finds a 9 m sandstone, now being tested.

drilling result

Gaffney Cline assesses net contingent resources (2C) of 11.3 MMbbl: Bo Rang A and B 9.6, L44-W 1.7 (L44/43 portion only). A further 4.1 MMbbl of prospective resource at NSE-F1 extension. Conversion to reserves depends on the production licence being granted.

resource reserve update

Carnarvon farms into the 3,977 km² Rangkas block onshore West Java, Indonesia, for a 25% interest, with Lundin Petroleum holding 75% and operating. It is a new venture outside Thailand. 2D seismic is due in 2010, and the deal needs Indonesian government approval.

farm in farm out agreement

Two new Bo Rang oil fields confirmed. Bo Rang "A" flows 686 bopd plus 3.29 MMscf/d of gas from a horizontal well. Bo Rang "B" flows only 36 bopd. This resolves the earlier minor-oil Bo Rang wells. Seven more wells are planned by year end and a production licence is expected by year end.

drilling result

Carnarvon agrees, subject to government ratification, to swap 50% of its new WA-435-P for 50% of three neighbouring Finder permits (WA-436/437/438-P). Finder operates all four, covering over 21,000 km². Targets are possible multi-Tcf gas structures, unproven.

farm in farm out agreement

Carnarvon wins 100% of new offshore permit W08-11 in the Bedout Sub-basin, WA, where earlier Phoenix wells found thick gas columns of unproven flow rate. Firm commitment is about $500,000 for seismic reprocessing and studies over three years.

asset acquisition disposition

NSE-H3 finds a new shallow oil pool at 610 m, pumping 840 bopd, with no reserves previously booked there. The deeper main target was lost to a collapsing hole and will be re-drilled. Eight other wells crossed this zone untested, so more wells are planned.

drilling result

L44-W is confirmed as a potentially significant new oil field, flowing about 1,220 bopd with under 0.5% water, straddling L44/43 and L33/43. This resolves the earlier water-affected test. Appraisal wells and a Bo Rang-1 twin follow; a production licence application is planned.

drilling result

NSE-F1 is a new oil discovery, producing about 60 bopd of lighter oil from a possibly separate compartment, and NSE-H1 produces 630 bopd. But NSE-D2ST2 makes only 143 bopd and L44-R2 was tight. Production has fallen to about 9,000 bopd gross (3,600 net) from over 14,000 at year end.

drilling result

Independent audit lifts net 2P reserves 46% to 16.6 mmbbl from 11.4, with 3P at 36.8 mmbbl (down from 45.7) and 1P at 3.7. This resolves the awaited year-end revision. A further 2.6 mmbbl of contingent resource at L44-R is excluded.

resource reserve update

NSE-E2 missed the main reservoir (faulted out) but found a deeper oil-stained zone, and the NSE-D2 first sidetrack is still above the gas/oil contact. Thailand exited 2008 at 13,446 bopd gross (5,378 net), below the 15,000 gross target. L44-V had strong oil and gas shows.

drilling result

NSE-E1 exploration well flows about 173 bopd of oil (448 bbl/d of fluid) from a separate new pool west of the main field, an area with no reserves booked in the 2007 report. NSE-E2 will follow. The Bo Rang L44-V appraisal well is also drilling.

drilling result

NSE-B1 tests at a stabilised 2,650 bopd. Field production was over 11,000 bopd gross before this well, and the CEO says the 15,000 bopd year-end target should be met. NSE-C1 will test an area of possible reserves that could move into 2P.

well test result

Full-year to June 2008: net profit after tax of $16.2m, with oil sales of 1,755,000 bbls (100% basis) versus 148,000 the prior year. The first profit after years of exploration confirms the shift to a producer. The chairman's review cites $63m revenue (the profit figure is quoted inconsistently, $16.7m there).

annual report

NSE-A2 and NSE-B2 flow a combined 3,480 bopd gross (1,392 net) at Na Sanun East. The plan is now 20-25 wells into mid 2010, with about four appraisal wells to the north-east where Carnarvon estimates 14 mmbbl 2C. NSE-A4 found a small gas cap; NSE-B1 is logging.

well test result

NSE-A3 horizontal well flows 2,250 bopd from the main volcanic at Na Sanun East with 0.1% water, the best result of the new development programme. The 15,000 bopd gross year-end target is maintained, and NSE-A4 and L44-C are drilling.

well test result

NSE-A1 finds a new upper oil zone, flowing a restricted 1,245 bopd at Na Sanun East, and may be extensive. L33-3 wildcat is abandoned without commercial oil, and NS9-H1 was also abandoned. Two further southern L33/43 exploration prospects are ready for drilling later in 2008.

drilling result

Full development of Na Sanun East begins, with NSE-A1 to spud within a week and up to 19 wells planned. L44H-D2 flows 600 bopd from the main zone; its deeper zones were not commercial. NS5-D1ST makes up to 140 bopd. Gross production is about 7,900 bopd. The operator admits a six-month approval delay forced less ideal flank wells.

drilling progress report

POE-9A flows 682 bopd, restricted by slim casing. Environmental approval arrives for 32 drilling locations, resolving the open approval thread. L44H-D2 reached 2,357 m and has oil shows in deeper zones. Production fell to about 7,200 bopd gross because wells are shut in for sidetracks.

drilling progress report

Gaffney Cline's independent review lifts Carnarvon's net 2P oil reserves to 11.377 million barrels, over 300% above the earlier figure (2.83 MMbbl). Net 3P is 45.7 MMbbl, mostly Na Sanun East. This confirms the significant upgrade expected.

resource reserve update

L44-R is an oil discovery, but only modest: the shallow zone flowed about 29 bopd of 27 API oil. Two other tests recovered mostly water. The operator upgraded the Si Thep and Nong Bua prospects. Note NS1-D1 missed the main fracture network, so a sidetrack is planned.

drilling result

First half profit: net profit after tax of $5.1 million for the six months to 31 Dec 2007 on oil revenue of $14.9 million, up from $3.2 million. Net production was about 3,800 bopd by March. There is no debt, and about 20 wells are planned for 2008.

half year report

Thailand grants a 27.8 sq km production licence over the Na Sanun East field, allowing full development; up to 19 wells are planned in 2008. This clears the approval that was pending. Gross sales are about 8,800 bopd (3,520 net).

regulatory community update

Wichian Buri-1 (Deep) is abandoned after testing only small gas and about 750 bbl/day of water, a dry exploration result. Gross production is 7,350 bopd (2,940 net), heading to about 10,000 gross by late Feb-early March; L44-R spuds in 5 days.

drilling result

Carnarvon wins the L20/50 concession (3,947 sq km, onshore Thailand) with Sun Resources, each 50%, and is approved as operator, its first operated block in Thailand. Work covers seismic and drilling over six years; signing due late January.

asset acquisition disposition

L44H-D1 flows a stable 3,940 bopd with almost no water, the highest rate of any onshore Thai well, and confirms an oil column of at least 150 m. NS6-D1A makes 615 bopd. Capacity exceeds 10,000 bopd gross, though trucking limits sales to 5,500-6,000 bopd. Up to 12 horizontal wells are being considered.

flow test result

NS2-D1 tested at up to 1,920 bopd with about 3% water, the best Na Sanun East well so far, and may flow higher. Production was choked back by limited oil storage; a long-term test of 1,800-1,900 bopd is planned. NS5-D1 and NS6-D1 are drilling.

flow test result

NS8-D1 is producing 1,480 bopd, lifting gross Thai production to about 4,000 bopd (1,600 net), above the 2,500 bopd target for self-funding drilling. L44G-D1 makes only about 50 bopd. The joint venture is considering a third rig.

flow test result

Carnarvon was awarded a Joint Study Licence over 14,400 sq km of the North West Natuna Basin, offshore Indonesia, with a 32.5% interest and co-operator role for a 6-month study. It carries a right of first refusal on a production sharing contract block, its first asset outside Thailand and Australia.

contract award

L44-H flows a stable 1,265 bopd of 35 degree oil with about 1% water, with signs it could produce more. This is the best well yet and confirms the central fault block of Na Sanun East. L44G-D1 reached 1,136 m, and further wells are planned.

flow test result

NS3-D1 tested at up to 337 bopd of light oil with under 1% water, a successful appraisal of the southern Na Sanun East field. It proves a roughly 78 m oil column, with no oil-water contact found yet.

well test result

Carnarvon bid for onshore Thailand block L20/50 (3,947 sq km, Phitsanulok Basin) with Sun Resources, each applying for 50% with Carnarvon as operator. The block is on trend with the Sirikit field, and no award has been made.

asset acquisition disposition

L33-D was plugged and abandoned for lack of reservoir. L44-G and NS3-D1 both showed strong oil shows and severe mud losses, so a sidetrack, L44G-D1, was added. L44-H is next.

drilling result

NS-4 is flowing about 686 bopd of oil with 0.1% water, after peaking at 950 bopd. Drilling stopped early, with four deeper zones untested. The joint venture will re-drill Na Sanun-1 and may add two more Na Sanun appraisal wells.

well test result

NS-3 hit volcanic reservoir at 961 m with oil shows in the upper 20 m, but testing 62 m produced only about 75 barrels a day of water with traces of oil and gas. This is a disappointing first Na Sanun result. A bridge plug will be tried; NS-4 is drilling.

well test result

Carnarvon and Rialto Energy are awarded offshore Carnarvon Basin exploration permit W06-17, 50% each, with Carnarvon as operator. The 50 sq km permit has a three-year work commitment including 315 km of 2D seismic. This is a new Australian venture.

asset acquisition disposition

Year-end 2006 2P reserves fall about 50% to 7.075 MMbbl gross (2.83 net) from 14.208 gross (5.683 net). Proved rises 34% to 0.853 MMbbl gross. Reserves moved to possible because of fault complexity; Carnarvon calls the estimates conservative and expects a revisit later in 2007.

resource reserve update

Drilling began on 31 March on NS-3, the first Phase 2 well, an appraisal of the Na Sanun discovery where Na Sanun-1 flowed 1,400 bopd in 1994 before watering out. A second rig is due in late April.

drilling spud

Carnarvon places 160 million shares at 7.7 cents to raise about $12.32 million via Hartleys, to fund the expanded Phase 2 programme. 70 million shares are issued now and 90 million need shareholder approval in late April. Funds also support talks on two new production opportunities.

capital raising announcement

The joint venture expands Phase 2 to up to 37 wells plus 100 sq km of new 3D seismic, with two rigs, starting March subject to approvals. POE-9 has held 320-389 bopd for over two months. Na Sanun-1's early water-out may have been due to poor cementing.

drilling scheduled

POE-9 is declared an oil discovery, now producing 380-390 bopd with 0.1% water cut after peaking at 560 bopd. The JV is applying for a production licence, and Phase 1 stands at 7 successes from 8 wells. Phase 2 of up to 20 wells starts in early March.

drilling result

POE-9 is flowing oil to surface at variable rates up to 560 bopd from a 17 m perforated zone in a new fractured volcanic reservoir. The company cautions that sustainability is unproven, given the earlier Na Sanun-1 well watered out quickly.

well test result

Gross field production is about 430 bopd, up from a low of 60 bopd in Q2 2006. POE-5 stabilised at 102 bopd. POE-9 reached 1,275 m with mud losses and live oil, and flow testing is under way. POE-2's F sand shows no contribution.

production update

Field production is about 275 bopd gross. POE-3 stabilised at 108 bopd commingled from F and H sands, and the POE-1 re-drill found 8 m of F sand pay. POE-9 has begun drilling; Carnarvon puts its chance of success at 25%. Phase 1 stands at 6 of 7 wells successful.

production update

POE-7 reached 1,125 m and all prospective zones looked water-bearing, so it will be plugged and abandoned. This is the first Phase 1 dry hole; POE-9 is still due to spud in early December as the last well.

drilling result

First stabilised Phase 1 flows: POE-6 G sand about 45 bopd and POE-2 G sand 40 bopd, both new reservoirs with no prior booked reserves. POE-3 H sand is flowing on test. POE-9, an appraisal of Na Sanun-1, is added, making Phase 1 eight wells.

flow test result

POE-6, an exploration well in a separate western fault block, reached 1,200 m with log net pay of about 22.8 m, including 10.2 m in the G sand. Oil is unproven until flow testing in early October.

drilling result

POE-8 reached 1,312 metres, deeper than planned, with log pay of about 2 m (F sand), 3 m (G sand) and 4 m in a deeper sand, plus possible shallower zones. Flow testing is needed. A pump change lifted the WB-N4 well from about 5 to 20 barrels a day.

drilling result

Preliminary 3D seismic shows several exploration targets. Phase 1 grows to seven wells, adding POE-7 updip of the 2003 Huai Phai-1 well, a structure about 3.3 km long. Phase 2 long-lead equipment is being ordered, and workover at the N4 well has lifted output.

drilling scheduled

Carnarvon agreed in principle with Hartleys to place up to 50 million shares at 5 cents (up to $2.5 million), plus a $1 million share purchase plan for existing holders at the same price, an 11.2% discount. Funds go to Phase 1 drilling, new opportunities and working capital.

capital raising announcement

POE-2, first of six Phase 1 wells at the 40%-owned Wichian Buri field, was drilled with log-indicated oil sands of about 5.8 m (F sand, ~964 m) and 5.6 m (G sand, ~1,035 m). Flow rates are unproven until September testing; G sand has never been production-tested.

drilling result

POE-2 spudded 11 July 2006, the first of six Phase 1 wells at the 40%-owned Wichian Buri field and the first drilling there since early 2004 per a later presentation. Target depth 1,310 metres; up to 20 more wells planned in Phase 2.

drilling spud

Independent assessment puts Wichian Buri and Si Thep proved plus probable reserves at 14.2 million barrels gross (5.68 million net to Carnarvon), up from 9.7 million earlier. Current output is only about 75 barrels a day; drilling starts in June.

resource reserve update

Carnarvon agreed to place 88.9 million shares at 4.5 cents to raise about $4 million via Hartleys, to fund 3D seismic and drilling at Wichian Buri. Second tranche of 41.4 million shares needs shareholder approval; follows the 1.8c raise in 2005.

capital raising announcement