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Carnarvon Petroleum Ltd: Roc-2 Appraisal Well On Schedule

Carnarvon Petroleum Ltd (ASX:CVN) has confirmed the timing and location of the Roc-2 well in WA-437-P.

The well has been designed to appraise and test the Roc-1 gas-condensate discovery revealed earlier in the year.

The Operator of the WA-437-P exploration permit, Quadrant Energy, has advised that the "Ocean Monarch" rig is expected on location at the Roc-2 site in the last week of June or the first week of July.

The Ocean Monarch will have the capability and approvals to undertake well testing if the expected hydrocarbons are confirmed whilst drilling this well.

The Roc-2 appraisal well is required to delineate the extent of the Roc field, calibrate reservoir parameters, understand reservoir deliverability and characterise fluid properties.

Roc-2 will be drilled to a depth of 5,250 metres with capacity to extend to 5,700 metres if justified by hydrocarbon shows, reservoir quality and drilling conditions.

Full well-bore coring and flow-testing are planned for this well over the Caley sandstones, taking the total time to drill, core and test to around 98 days.

Roc-2 location and volumes

The Roc-2 well is located in around 100 metres water depth, around 160 kilometres north-east of Port Hedland in the Bedout sub-basin of the greater Roebuck basin.

Roc-1 encountered a gross reservoir section of around 120 metres in the Caley, with the top 40 meters being hydrocarbon bearing.

The Roc-2 well is designed to appraise this reservoir section in an updip location, around 5 kilometres to the east of the Roc-1 well.

Adrian Cook, managing director, commented:

"Our growth has been very rapid this year with us securing a number of new additions to the portfolio.
"Encouragingly, we've been able to achieve these goals while simultaneously advancing our existing projects.

"But of particular interest in the near term is drilling the Roc-2 well with Quadrant Energy, particularly so soon after making the Roc-1 discovery in January this year.

"In the success case, the Roc-2 appraisal well will confirm our gas and condensate volume estimates and provide us with important information on the flow rates of these hydrocarbons from the reservoir.

"We also have plans to explore a secondary deeper objective in the Roc-2 well, targeting a zone that contained encouraging hydrocarbon shows in the bottom hole section of the Roc-1 well, following success in the primary target and accommodating well conditions.

"The Roc-1 well laboratory results have an important bearing on this project, and I'm pleased to report that the results have begun to come in and have exceeded our expectations."

Analysis

News flow will remain strong for Carnarvon, and not just from the Roc wells.

At the end of last month, the company expanded its portfolio with the acquisition of oil prone acreage on Australia's North West Shelf.

The move adds another high quality asset to Carnarvon's growing portfolio of oil and gas exploration projects in the area.

WA-523-P is highly prospective with circa 1.3 billion barrels of oil equivalent nearby.

Prior to this acquisition, Hartleys placed a Speculative Buy and a $0.16 12-month price target on Carnarvon.

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