Shares in local oil and gas company Carnarvon Petroleum have surged on better than expected results at its Roc-2 well test offshore Port Hedland.
Shares in local oil and gas company Carnarvon Petroleum have surged on better than expected results at its Roc-2 well test offshore Port Hedland.
Carnarvon said Quadrant Energy, its joint venture partner and operator of the Roc 2 permit area, tested well flow at rates up to 51.2 million standard cubic feet per day of gas and 2,943 barrels of condensate per day, equal to about 11,500 barrels of oil equivalent per day.
“Our drilling results to date in the Bedout sub-basin have been extraordinary,” Carnarvon managing director Adrian Cook said.
“The Roc-2 well has provided us with a significant amount of valuable new information, and the flow test result very clearly and unequivocally demonstrates the capability of these hydrocarbons to flow from quality reservoir within the basin.”
The news sent Carnarvon shares surging; they were up 40 per cent, or 4 cents, to 14 cents each at midday.
“There is great potential within this basin for significant hydrocarbon volumes to exist as I have referred to on numerous occasions,” Mr Cook said.
“These results provide Carnarvon and its partner with enormous blue sky potential and a platform within the Phoenix South and Roc area in which to test and develop this potential.”
Quadrant chief executive Brett Darley said the Roc-2 result highlighted the prospectivity of the Bedout basin.
"Since farming into the area in 2012, the Quadrant Energy-led joint venture has achieved a 100% success rate in three exploration wells – Phoenix South-1, Roc-1 and now Roc-2," Mr Darley said in a statement.
"These results show significant potential in this largely unexplored area situated in relatively shallow water."
Quadrant Energy is the Operator and holds between 70- 80% interest over four (4) permits totaling more than 21,000 square kilometres (km2).
Mr Darley said the Roc-2 result provided the opportunity to evaluate a range of development options given the close proximity to major resource projects.
"Quadrant Energy is continuing to obtain high quality data to thoroughly evaluate these options in a measured approach." he said.
"Today’s announcement adds to Quadrant Energy’s recent exploration success during the year at Davis-1, Outtrim-East-1 and Spartan-1, highlighting Quadrant Energy’s offshore exploration capability and strong acreage position."
Carnarvon holds a 20 per cent stake in the WA-437-P exploration permit (which contains the Roc-2 well), with Quadrant holding the majority 80 per cent interest.
