Tuesday 19 April 2022

Carnarvon Energy Limited (“Carnarvon”) (ASX:CVN) provides the following update on the Apus-1 well in the WA-437-P exploration permit, around 27 kilometres southwest of the successful Pavo-1 well.

Progress

Since the last report, the 12 ¼” hole was drilled to around 2,199 metres Measured Depth (“MD”) and the 9 5 /8” liner was set and cemented in place.

The 8 ½” hole section has been drilled down to a final total depth of around 2,900 metres MD.

Well results

Excellent quality reservoirs in the Caley and Milne Members were intersected as prognosed. The interpretation from the logging while drilling and mud logging equipment is that, while hydrocarbons were observed in the well, a commercial hydrocarbon pool has not been discovered.

Hydrocarbon charge and seal were recognised as key risks for the Apus-1 well pre-drill. The early interpretation of the drilling results indicates there is evidence of hydrocarbons migrating to the Apus location; however, they may not have migrated in sufficient quantity for a commercial hydrocarbon pool to form, or sufficient hydrocarbons were not able to be retained within the closure that was drilled. The Apus Island  is surrounded by shale-filled channels which isolates it from the Dorado and Pavo discoveries.

Current operations

Wireline formation evaluation tools are being run to gain information to support further exploration in the Bedout Sub-basin, after which the well will be left in a safe condition.

Carnarvon Managing Director and CEO, Mr Adrian Cook, said:

“Collectively, the Pavo-1 and Apus-1 results open up the potential of the Bedout Sub-basin by proving the existence of hydrocarbons and high-quality reservoirs a considerable distance east and southeast from the Dorado and Roc fields.

At this time, we remain highly confident of discovering additional resources in and around our two main fields and further across the Bedout Sub-basin, and plan to provide further information on these opportunities in due course.

Our exploration endeavours in the Bedout Sub-basin have delivered us two large and important assets in terms of the Dorado oil, gas and condensate field, and the more recent Pavo oil field. In addition to maturing our future exploration plans, the development and production of the Dorado and Pavo resources will be a core focus for Carnarvon with the Dorado Phase 1 liquids development on track for a final investment decision (FID) this year.”