Carnarvon Energy Limited - Buffalo-10 Drilling Commenced

Published: 2021-12-31 09:40:29 ET CVN.AX

Carnarvon Energy Limited ('Carnarvon') (ASX: CVN) is pleased to announce that the Valaris JU-107 jack-up drilling rig has commenced operations at the Buffalo-10 well location.

Progress

Since arriving at the Buffalo-10 well location, the rig has successfully concluded preparations for drilling and has drilled the top hole section following a slight delay caused by a tropical weather system. The current operation involves the installation and cementing of the Conductor which provides the structural foundation for the well.

Forward Plan

Once the surface casing has been cemented in place, the rig will drill 17 1/2' hole to a planned section depth of approximately 800 metres Measured Depth ('MD'), followed by setting the 13' casing. Following this, the well is planned to drill the 12 1/4' hole section to approximately 2,800 metres MD before setting the 9' casing.

Contact:

Thomson Naude

Tel: (08) 9321 2665

Email: [email protected]

About Buffalo

The Buffalo project objective involves redeveloping the Buffalo oil field in the Timor Sea. The field resides in only 30 metres of water with a reservoir depth between 3,200 and 3,300 meters below the seabed. The previous field proved the existence of a very high deliverability reservoir containing high quality light oil that is expected to sell at a premium to Brent in today's market.

Carnarvon's mid case recoverable volume estimate is 31 million barrels (gross, 2C contingent resource). With the minimum economic field size estimated to be significantly lower than the mid case estimate, there is a strong likelihood the Buffalo-10 well will confirm an economic project.

Accordingly, Carnarvon's drilling plans provide for the Buffalo-10 well to be retained as the first production well in the redevelopment program. For the above reasons, Carnarvon is working with its project partner, Advance Energy Plc, on plans to compress the timeline to first production once the Buffalo-10 well confirms a commercial oil resource. These plans include engaging with local industry for the supply and installation of suitable equipment to produce the oil.

Cautionary Statement

This announcement may contain forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as 'expect', 'believe', 'estimate', 'should', 'anticipate' and 'potential' or other similar wording. Forward-looking information in this announcement includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-up. By their very nature, the forward-looking statements contained in this announcement require Carnarvon and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this announcement is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Carnarvon. Although Carnarvon believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.