Carnarvon boosts Phoenix South estimates
Resource estimates for gas and condensate volumes in the Phoenix South discovery offshore Australia have increased by 32 percent.
The Phoenix South discovery is located in exploration permit WA-435-P, operated by Quadrant Energy with 80% interest. The remaining 20% is held by Carnarvon Petroleum.
Following further technical work on the Phoenix South-2 well results, Carnarvon said on Tuesday that hydrocarbons were discovered in the Caley Member. Further technical work has determined that due to the pressures encountered, and the nature of the gas observed, the resource estimates in the Phoenix South Caley have been increased from pre-drill estimates.
The gross mean estimate is currently 489 billion standard cubic feet (bscf) recoverable gas and 57 million barrels of associated condensate (being 143 million barrels of oil equivalent (boe), gross, Pmean) in a conventional anticline trapping structure.
According to Carnarvon, certain data from the Phoenix South-2 well suggests there could be a stratigraphic component to the Caley structure which could materially increase the resource size presented in the company’s report on Tuesday. The company added that further drilling is required to properly determine whether this case exists.
In addition to the discovery in the Caley, a gross 25 meter oil sand was encountered within the Hove Shale in the Phoenix South-2 well. Resource estimates for this discovery are still under review.
Carnarvon’s Managing Director and CEO, Adrian Cook, said: “Our strategy to test a number of prospects in our Phoenix project has produced the very real possibility of us having over one trillion cubic feet of gas and over 100 million barrels of oil and condensate within an area capable of being aggregated into a central development, only 150 kilometers offshore from important gas infrastructure near Port Hedland.
“The potential size of the Phoenix South Caley resource adds to the excitement of the recent Roc Caley discovery and its historic well test. Incorporating the large Dorado Caley prospect, that is expected to be targeted later this year, and this significant outcome is looking very possible. There is a great deal of work still to be undertaken, but our progress and success to date clearly makes this one of the most exciting projects in the Australian oil and gas sector at the current time.”