Carnarvon Petroleum Limited (Carnarvon Petroleum) has provided an update on the timing and extent of technical work that is being completed on the WA-521-P exploration block (Labyrinth project) on the North West Shelf offshore Western Australia.

Highlights ? Labyrinth and Mouse prospects estimated to contain ~400 million barrels of recoverable oil each (Pmean) ? Total of over 1.5 billion barrels of recoverable prospective resource identified in the block to date ? Analogue to the Browse Basin where 34 Tcf and over one billion barrels have been discovered ? Carnarvon uniquely positioned to draw on proprietary data from, and on trend with, the successful Roc and Phoenix discoveries in the neighbouring permits

WA-521-P is located in the Rowley Sub-basin, offshore North West Shelf, north of Carnarvon’s Roc and Phoenix South hydrocarbon discoveries, with water depths between 200 and 500m

Carnarvon’s Managing Director, Mr Adrian Cook said: 

“The results from the technical work in this project demonstrate the value of having a strong regional geological understanding. The significant volume estimates for the prospects and leads identified to date also make it a very attractive asset in the Carnarvon portfolio.”

Interpretation of the reprocessed 2D seismic survey

The interpretation of newly reprocessed 2D seismic on the permit, as part of the WA-521-P first year work program, has revealed several significant prospects and many leads, in the middle and early Jurassic deltaic reservoirs. The largest prospect identified is Labyrinth, with an aerial extent of 90Km2 at the Lower Depuch Formation level.

Geological similarities with the highly prospective southern Browse Basin are clearly apparent from the early technical work and provide a very exciting analogue to the prospectivity of the WA-521-P permit. The Browse Basin contains extensive petroleum resources, with discovered ultimate recovery of hydrocarbons totalling over 1 billion barrels of oil and condensate, 34 Tcf of gas and 350 million barrels of LPG within the Icthys, Poseidon, Brecknock/Calliance/Torosa, Prelude, Argus, Cornea, Crown, Crux and Gwydion fields

Labyrinth Prospect

The Labyrinth Prospect is located in 200m water depth, with the target reservoir, the mid-Jurassic Lower Depuch sandstone, occurring at a relatively shallow depth of burial, approximately 2,700 metres below sea level. The Lower Depuch reservoir is typically of excellent quality, with porosities averaging around 30% and consists of hundreds of metres of thick deltaic sandstones. At the Labyrinth location, these sandstones are overlain with seismically mapped approximately 200m-300m sealing facies, indicating an effective seal.

wExamples of the high quality of this Lower Depuch reservoir is evidenced by the number of developments in the vicinity and the peak production rates, including the Perseus gas/condensate field, Fletcher Oil Field and Reindeer/Caribou gas field. Additionally, the nearby discovery at Nebo de-risks some of the fundamental petroleum elements with a successful flow test. The geoscience data all points to a relatively high chance of success at Labyrinth.

Prospects – Multiple stratigraphic levels

In particular the Labyrinth and Mouse prospects, at the Lower Depuch stratigraphic level, are estimated to contain around 400 million barrels of oil recoverable in each prospect at the Pmean confidence level. At the Upper Bedout stratigraphic level further resource potential is also recognised in the 4 significant prospects in the permit.

Further prospective resources have been identified in a number of leads within the exploration block, consisting of a number of different petroleum plays. Additional work is ongoing to better define these opportunities.

The estimates of prospective resources included in this announcement have been prepared in accordance with the definitions and guidelines set forth in the SPE-PRMS.

The resource estimates outlined in this report were reviewed by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga has over 20 years’ experience in petroleum exploration and engineering. Mr Huizenga holds a Bachelor Degree in Engineering and a Masters Degree in Petroleum Engineering. Mr Huizenga is qualified in accordance with ASX Listing Rules and has consented to the form and context in which this statement appears.

There are numerous uncertainties inherent in estimating reserves and resources, and in projecting future production, development expenditures, operating expenses and cash flows. Oil and gas reserve engineering and resource assessment must be recognised as a subjective process of estimating subsurface accumulations of oil and gas that cannot be measured in an exact way.

These prospective resource estimates have an associated risk of discovery and risk of development. Further exploration and appraisal is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

The prospective resources have been calculated using probabilistic methodology.

About WA-521-P

Carnarvon acquired the exploration permit in March 2016 by committing to undertake a work program that included the reprocessing of existing 2D seismic data and geological / geophysical studies.

The permit is located in the Roebuck Basin in the North West Shelf of Western Australia and covers an area of approximately 5,000 km2 . Carnarvon holds the permit 100% and is the operator.