Carnarvon Announces Rig Moving to Pavo-1 Location

Carnarvon Energy Limited has announced that the Noble Tom Prosser jack- up drilling rig is currently moving towards the Pavo-1 well location.

Drilling is expected to commence within the next week after allowing for towing and set up.

Carnarvon estimates a gross mean recoverable volume of 82 million barrels of liquids and 108 Bcf of gas.

Carnarvon holds a 30% interest in this resource, meaning the net liquids resource could be similar in volume to Carnarvon’s interest in the Dorado field in a success case.

The target reservoir is the Caley Formation sands which flow tested at equipment limits of around 11,000 barrels of oil per day in the Dorado-3 well.

The Pavo-1 well is targeting a prospect with the same reservoir type and trap style as the proven Dorado oil, gas and condensate field. This is an attractive prospect, having an estimated one-in-three (34%) geological probability of success.

After drilling the primary Caley target, the joint venture has the option to drill into deeper stratigraphy including the Lower Archer Formation Dumont Member sands, and the Permian carbonates. Information from these intervals will be highly valuable in assessing the substantial exploration potential north and east of the Pavo prospect.

Following completion of the Pavo-1 well, the rig will drill the Apus-1 well which is located around 20km south-west of the Pavo-1 well location.

ASX disclosure: Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project and may relate to undiscovered accumulations. These prospective resource estimates have an associated risk of discovery and risk of development. Further exploration and appraisal will be required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

Carnarvon Managing Director and CEO, Mr Adrian Cook, said:

“The Carnarvon team are excited to be undertaking this next phase of exploration drilling in the Bedout sub-basin.

Targets like Pavo are highly attractive, from an economic and time to develop perspective, given their potential to utilise the nearby Dorado facilities.

The Dorado development is currently in the advanced engineering and design stage with a joint venture Final Investment Decision (“FID”) expected to occur later this year. Once FID is achieved, construction of the Dorado production facilities can commence.

In addition to the benefits of Pavo’s proximity to Dorado, the resource size and Carnarvon’s 30% interest in the resource will make a successful discovery meaningful to Carnarvon.

The proven Bedout basin acreage remains one of Carnarvon’s core assets. The basin contains around 100 prospects at the current time. With new 3D seismic acquired in 2021 and this year, we expect to enhance this number and delineate a short list for future exploration programs. While the opportunity within the basin is extensive, right now we are looking forward to seeing the results from this well in the coming weeks.” WA-438-P Equity Participants Carnarvon Energy Limited 30% Santos Limited (Operator)