Carnarvon Expands Acreage in North West Shelf Region
Carnarvon has acquired a highly prospective permit within a region containing approximately 1.3 billion barrels of oil equivalent.
Carnarvon Petroleum Limited (ASX:CVN) announced that it has expanded its acreage in the North West Shelf (NWS) by acquiring highly prospective permit in a region with approximately 1.3 billion barrels of oil equivalent in the nearby oil and gas field.
The company states that it has acquired a highly prospective permit within a region containing approximately 1.3 billion barrels of oil equivalent. Carnarvon’s acreage in the NWS area has now risen to around 35,000 square kilometres.
The company acquired this project through the Government gazettal process after bidding for a work program that comprises of reprocessing, interpretation and analysis of 3D seismic data for the initial three-year term. Carnarvon has already begun the reprocessing work and this process is expected to be completed within the next 12 months. After the initial results, Carnarvon may proceed to acquiring the data and drilling a well over a span of three years.
CVN Secured the Permit for a Relatively Low Price
Carnarvon’s Managing Director and CEO, Mr. Adrian Cook commented on the acquisition: “This area of the North Western Shelf has tremendous opportunity and is an important addition to our portfolio. The permit could clearly fulfil our strategic intent: ‘to find and commercialize major oil and gas resources on the North Western Shelf (“NWS”)’. Without doubt, the mapped prospectivity in this proven oil province, and within the permit, has outstanding development potential.”
Mr. Cook also added that the company secured this project for a relatively low price to similar projects bid by its peers around a year ago. This purchase has been made during a time when the prices of crude oil seem to be at a cyclical low.
CVN has risen 1% upon market open, surging 11% in May, and was last quoted $0.098, as at 10:10 am (AEST).
Author: Kaivalya Kandarpa
May 30, 2016
Kaivalya is an equity analyst and a client advisor at Wise-owl. She specialises in fundamental and technical analysis for large and mid-cap companies. Having completed her bachelor's degree in Business Administration majoring in Finance, Kaivalya has a comprehensive understanding of international stock market movements. She tracks local and overseas markets and compiles analytical reports for various industries.