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  • Carnarvon Petroleum Expects Thailand Oil Production To Increase 0 comments
    Jan 28, 2014 11:59 PM

    Carnarvon Petroleum (ASX: CVN) expects ongoing drilling, continued improvement due to the water flood project and workover campaigns to improve its Thailand oil production in the coming quarters.

    Production from the WBEXT-2BST2 well commenced in the last quarter at rates of about 175 barrels of oil per day with 40bpd of water and 500,000 standard cubic feet of gas.

    WBEXT-2BST2 was designed to test the igneous V2 sandstone reservoir and its success bodes well for the ongoing drilling program.

    "With current production generating surplus cash flows, and underpinning enterprise value, increasing Thailand production will deliver extra cash flow to explore and develop new asset opportunities in the future," managing director Adrian Cook said.

    Drilling is currently underway on the WBEXT-4C well, which targets similar reservoirs to the nearby WBEXT-2C and WBEXT-2BST2 wells in a contiguous but untested fault block.

    Importantly, the company is well positioned for the upcoming drilling of the high impact Phoenix South-1 well on the North West Shelf, Western Australia, by operator Apache Corporation (NYSE:APA).

    Drilling of the well is currently scheduled for the June 2014 quarter, reducing the risk of cyclones affecting the Phoenix South-1 operations.

    A revised agreement ensures that Apache will fund drilling of Phoenix South-1 and the contingent Roc-1 well to a cap of US$70 million each.

    "Carnarvon is now in the position where, in the event of success, it will have a world class operator in Apache working four contiguous blocks with two key wells being fully funded and material equity across this acreage being held," Cook added.

    Carnarvon is now in the position where, in the event of success, it will have a world class operator in Apache working four contiguous blocks with two key wells being fully funded and material equity across this acreage being held.

    Quarterly Production

    Production for the December 2013 quarter was 46,461 barrels of oil net to Carnarvon, down from the 48,299 barrels produced in the previous quarter due to some wells being shut in for workover related activities.

    This generated positive operating cash flow before tax of A$2.6 million from the L44/43 and L33/43 concessions and helped increased the company's cash reserves to $21 million from $19.9 million.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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