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  • Carnarvon Petroleum Delivers Boost To Thailand Oil Production 0 comments
    Jul 16, 2014 10:15 PM

    Carnarvon Petroleum (ASX:CVN) is reaping the benefit of successful drilling in Thailand with the company reporting net production of 73,009 barrels of oil for the quarter ending 30 June 2014.

    This is up almost 23% from the 59,383 barrels it produced in the previous quarter despite the sale of half its 40% interest in its Thailand concessions to Singapore's Loyz Energy effective 31 March 2014.

    The increased production also increased net revenue up 16% to $7.2 million and operating cash flow before tax of $5.4 million, up from $4 million in the March 2014 quarter.

    It noted the overall success of the first drilling success in the 2014 calendar year had resulted in an increase in gross oil production rates to about 4,000 barrels of oil per day in the June 2014 quarter.

    This is a significant improvement from gross production of 1,650bopd in the previous quarter.

    Notably, this increase in production has more than offset the sale of half its 40% interest in the L33/43, L44/43 and SW1A Concessions to Loyz (SGX:594) for up to US$65 million.

    Carnarvon is also well funded for its operations with $50.5 million in the bank as of 30 June 2014 due in large part to banking the first US$33 million from the sale of the assets.

    Recent Work

    The company is participating in the drilling of the Phoenix South-1 well off Western Australia that targets multi-trillion cubic feet of gas.

    Operator Apache has recently commenced operations to sidetrack the well after the casing equipment became stuck in the well bore.

    Apache and partner JX Nippon are earning a 40% and 20% interest in WA-435-P, where the well is located, by funding drilling of the well to a cap of US$70 million.

    Carnarvon is responsible for 20% of any costs over this amount.

    Success in the Phoenix South-1 well is likely to lead the Joint Venture to drill the Roc well in the adjoining WA-437-P permit.

    Funding for this well has been secured through an agreement with Apache and JX Nippon.

    In Thailand, operator Towngas has also kicked off a drilling program of between five and seven wells that could further increase production.

    This is a mix of exploration, appraisal and development wells.

    Carnarvon has also been awarded three new contiguous exploration blocks in the Carnarvon Basin in Western Australia.


    Despite the sale of half its 40% interest in its Thailand oil production assets, the successful drilling program has resulted in a 23% increase in net production for Carnarvon Petroleum.

    There's further production growth potential with the current drilling program of up to seven wells while the drilling of the Phoenix South-1 well is a potential game changer for Carnarvon.

    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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