Carnarvon farms-in to Quadrant project

Carnarvon Petroleum has acquired a 35 per cent stake in Quadrant Energy’s Barrow sub-basin oil project, and has committed $10 million towards a drilling program scheduled for June.

In a statement, the Perth-based company said the project included existing oil resources, a drill-ready prospect, and a suite of related and nearby prospects and leads.

“The object of this project is to discover and aggregate sufficient oil resources to underpin a field development,” Carnarvon said.

“Central to this strategy will be the result of the Outtrim East-1 well which will, in addition to testing the extent of oil discovered in the Outtrim-1 reservoir, investigate the potential for new oil charged sands to the north and east of the original 1984 well.”

Quadrant Energy has retained a 65 per cent interest in the Barrow sub-basin project and, as operator, is planning to drill the Outtrim East-1 well in June.

Along with a $10 million payment to contribute to the planned drilling program, Carnarvon will also pay a consideration to the vendors to enter the project.

Carnarvon managing director Adrian Cook said the opportunity provided the company with upside potential for a relatively modest investment, and would help put the company in good standing for a recovery in oil prices.

“This project illustrates the mutual confidence and strong relationship between Carnarvon and Quadrant, as well as underpinning our focus on North West Shelf oil and gas exploration,” he said.

Carnarvon shares were 2.3 per cent higher to 8.6 cents each at 10am.