Carnarvon Petroleum has released its quarter highlights with managing director (MD) Adrian Cook sharing progress on the Dorado development, the Buffalo and Bedout wells, and the company’s renewable fuels bio refinery project.
Cook said the Dorado liquids development continues to make excellent progress with the award of contracts for the front-end engineering and design (FEED) floating storage facility and wellhead platform.
“Targeting an initial daily gross oil production rate of between 75,000 and 100,000 barrels, Dorado is a world-class asset capable of providing significant return for shareholders,” Cook said.
Carnarvon has a 20 per cent interest in Dorado, and the oil development is operated by Santos.
Buffalo-10 well is on schedule to start in November this year, once the Valaris JU-107 jack-up drilling rig has completed its current operations.
Drill preparations have also advanced during the quarter with the well on schedule to spud, and ancillary contracts have now been signed with support vessels, helicopters and drilling service providers.
“Drilling preparations are also well advanced for the Buffalo-19 well in the Timor Sea, targeting a mid-case recoverable volume estimate of 31 million barrels,” said Cook.
Buffalo-10 is in the first stage of the redevelopment of the buffalo oil field, and Carvaron, as operator of the project, is preparing to drill a well that will penetrate the existing oil column remaining and assess its extent.
Carnarvon further advised that Pavo-1 and Apus-1 Bedout exploration wells are scheduled to commence early 2022.
“A discovery at these locations would provide enhanced economic outcomes on shorter development time frames if tied back to the Dorado facility, which is being designed for further exploration success.”
A 3D seismic survey was completed during the quarter, successfully acquiring additional area over the highly prospective basin.
With three exploration wells secured for late 2021 and early 20222, the coming months represent a significant period of activity for Carnarvon.
Cook hopes each well will provide potential to transform the company and add considerable value to the development.
At the start of the quarter, Carvaron formed a joint venture (JV) to produce renewable diesel among other sustainable products with Frontier Impact Group.
The JV plans to use technology to process waste lignocellulosic biomass as feedstock and produce renewable diesel.
Towards the end of the quarter, the JV completed testing on the renewable diesel and results showed lower emissions than petroleum diesel and other biofuels.
According to Cook, the project has the potential to displace up to 170,000 t of carbon emissions annually.
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