Wednesday 30 August 2017

Perth-based Carnarvon Petroleum has firmed up resource estimates for the Buffalo field off the coast of Western Australia.

The company revealed Monday independently audited volumetric estimates of contingent resources placed the best estimate contingent resources at the field at 31.1 million barrels of oil.

It added that this represented a revenue generating capacity of roughly US$1.5 billion at current prices based on its current 100% interest in the field, however it has previously stated it is looking for a partner to assist in the redevelopment of the field.

Carnarvon said scoping studies showed the redevelopment of Buffalo was economic at current oil prices, even based on the low estimate of 15.3 million barrels of contingent resources.

Carnarvon chief executive Adrian Cook said a great deal of work had gone into de-risking the Buffalo field.

“This included engaging independent experts to cross check a significant proportion our work in order to give us the highest possible level of confidence in the remaining oil recoverable from this field,” he said.

“The next steps will focus on the field redevelopment and include securing a production licence and associated approvals, advancing redevelopment plans and supplier commitments and finalising funding for the redevelopment activities.”

Carnarvon picked up Block WA-523-P in the Timor Sea last year through the government gazettal process with a successful bid that included reprocessing existing 3D seismic data.

The Buffalo field was discovered on the block in 1996 and produced about 20 million barrels of oil before operations were ceased in 2004.

The block also contains the undeveloped Bluff-1 and Buller-1 wells which hit a 33-metre and 27-metre gross oil column within the Elang formation, respectively.