Carnarvon Petroleum Limited’s (ASX:CVN) share price has skyrocketed, announcing in tandem with its joint-venture partner Quadrant Energy, a “significant” oil discovery at the Dorado-1 well off the north-west coast of Western Australia.
The Dorado exploration well was testing what was thought to be primarily a gas prospect, however light oil was recovered from excellent reservoir containing a gross hydrocarbon package of 96.1 metres and a net pay thickness of 79.6 metres in highly porous and permeable Caley Member sands.
Carvarvon Petroleum reports the results were confirmed after wireline testing was undertaken following the Dorado-1 well being drilled down to around 4,044m.
Carnarvon managing director Adrian Cook described the result as “transformational” for the company.
This is a significant discovery given the quantum of the net pay thickness, the quality of the oil and the extremely good reservoir characteristics,” Mr Cook said.
“Currently, we estimate the net oil pay is around 80 metres, with more drilling still to come this is very exciting for Carnarvon Petroleum.
“With multiple targets still left, the focus now is to complete the drilling program through the Baxter, Crespin and Milne Members.
“In April we highlighted the possibility that the Dorado structure could contain a substantial oil accumulation. Given this outcome has now occurred, Carnarvon will make an assessment of and issue a revised volume estimate as soon as we possibly can once drilling operations have finished.”
Excitingly, an additional hydrocarbon accumulation has been observed in the Baxter Member, with drilling and evaluation still to be completed in that section of the well.
Dorado is one of a number of discoveries Carnarvon and Quadrant have made in recent years to reinvigorate the offshore exploration scene in WA, while providing a number of new development opportunities.
Carnarvon shares piled on 10 cents following the discovery to close the day at 28c per share.