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Carnarvon Petroleum, Quadrant Energy Recover Gas At Roc-1

Carnarvon Petroleum (ASX:CVN) and operating partner Quadrant Energy have confirmed the discovery of condensate-rich gas at the Roc-1 oil well offshore Western Australia.

Wireline logging over the interval from 4,380 metres to 4,420 metres has confirmed reservoir quality sands with net hydrocarbon interval of 10 metres from the gross 40 metre sand column.

Pressure testing has confirmed at least three discrete hydrocarbon columns in the section from 4,380 metres to 4,420 metres.

Formation fluid sampling has confirmed a liquids-rich gas with a condensate ratio of 20 to 40 barrels per million cubic feet being evaluated at the rig site using downhole instruments.

The fluid type will be confirmed in laboratory testing once the sample bottles are dispatched from the rig.

Mobility observations during pressure testing indicate good quality reservoir with inferred permeability in the range from 10 to 100 millidarcy.

Roc-1 well is located about 20 kilometres southeast of last year's Phoenix South-1 oil discovery and around 150 kilometres north of Port Hedland.

Spudding of the well has been carried to US$70 million by Quadrant and 20% partner JX Nippon.

Forward plan

It is estimated to take around 24 to 48 hours to complete the sidewall borehole core sampling.

Following the completion of the sampling program, operations for this well will be complete and the well will be left in a safe condition with the joint venture deciding not to deepen the well or retain the well for future re-entry.

The hydrocarbons discovered in Roc-1 are interpreted to be in a down dip location on the structure close to the calculated gas water contact.

The joint venture partners decided that testing at the potential crest of the structure with a later well designed for this sand would lead to higher confidence of achieving better results from a test program.

Analysis

The latest update from Carnarvon is encouraging as it confirms the presence of a live hydrocarbon system in the Roc-1 area, with indications that the condensate-rich gas resides in reservoir capable of being recovered in a conventional manner.

Importantly, the latest results confirm there is potential for both oil and condensate-rich gas at Roc-1.

Along with the information from the Phoenix South-1 discovery last year and the Phoenix-1 discovery in 1980, Roc-1 has provided a high level of encouragement in the immediate region as well as in the broader prospectivity of the acreage held by Carnarvon and its partners.

Future price catalysts for Carnarvon may develop as the company is in an exploratory phase in this region and more work is required before the company and the market can fully understand its potential.

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