CVN 1.25% 39.5¢ carnarvon petroleum limited

Carnarvon Petroleum and Quadrant Energy have made a “staggering”...

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    Carnarvon Petroleum and Quadrant Energy have made a “staggering” oil discovery at their Dorado-1 well being drilled in the Bedout Basin, according to operator Quadrant.Carnarvon’s shares rocketed on the news, and were 26¢ a share at 9.50am, up 48.6 per cent since it came out of a trading halt this morning.The junior explorer owns 20 per cent of Dorado-1, with the remainder held by operator Quadrant.Carnarvon managing director Adrian Cook said the result was transformational for the company.He said Carnarvon estimated the net oil pay to be about 80m and the drilling program had three more targets to drill through.“This is a significant discovery given the quantum of net pay thickness, the quality of the oil and the extremely good reservoir characteristics,” he said.Quadrant group executive subsurface Fred Wehr said the light oil column was drilled into last Thursday evening.Speaking at the Petroleum Club of WA last night he said he hoped to drill through the other targets in the next seven to 10 days.“We see this Dorado as going to be a big deal,” he said.“It’s just staggering what we've got here, I can’t talk volumetrics but this is enormously material.”“I'll tell you tomorrow that the low case is solidly commercial, the mid-case is awesome and the upside is staggering,” Mr Wehr said when asked about the size of the prospect.“We are talking about something that is really a game changer, certainly for Quadrant, definitely for Carnarvon, but potentially for the industry as well,” he said.“I hope I'm not overstating this or overselling it, but this is something I've never seen in a 35-year career.”The Carnarvon statement said the results were confirmed by wireline testing performed after the drilling reached about 4044m measured depth. The veteran explorer said he would make a plea for capital to Quadrant’s owners to go “hell bent for leather” on further exploration in the area.“Your exploration ought to be driven by your opportunities, not by your budget,” he said.“I think one of the big lies of offshore exploration in the North Carnarvon Basin is that it’s all done.”The news will be welcomed by Quadrant’s main owners Macquarie and Brookfield, which formed the WA oil and gas explorer and producer in 2015 from assets bought from Apache Energy. They were reported to have cancelled an initial public offering earlier this year.

    I wonder what Fred’s thoughts would be after flow rates results. Maybe someone could e-mail him.

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