Carnarvon Petroleum Announces Buffalo Drilling Update

Source: www.gulfoilandgas.com 2/15/2021, Location: Asia

Highlights
- Carnarvon is progressing with its plans to drill the Buffalo-10 well, targeting 2H 2021.

- Petrofac appointed as drilling management services contractor

- Advance Energy Plc (‘’Advance’’) farm-out completion on track for March 2021

- Approvals and procurement process underway

Carnarvon Petroleum Limited (“Carnarvon”) (CVN) is pleased to update shareholders on the Buffalo project.

Carnarvon has awarded the drilling management services to Petrofac, which in the short term will include completion of detailed well design, procurement of long lead items and contracting the drilling rig and associated services, including the shore base location. The appointment followed a highly competitive evaluation process.

The objective is to drill the Buffalo-10 well in the second half of 2021. The well is targeting the crest of the proven Buffalo oil field and will be suspended as a future production well. Further details and updates on timing will be provided once Petrofac and Carnarvon have secured a drilling rig and long lead items.

On the 17 December 2020, Carnarvon announced a binding agreement with Advance (https://www.advanceplc.com/) where they will acquire up to a 50% interest in the Buffalo project by funding the drilling of the Buffalo-10 well up to US$20m on a free carry basis. In addition to this, the newly formed joint venture will acquire development funding from third party lenders and any additional funding requirements (in addition to that provided by third party lenders) will be provided by Advance as an interest free loan.

Carnarvon and Advance have made material progress in satisfying the conditions in relation to the farm-out and we look forward to completing the transaction at the end of this quarter.

Carnarvon Managing Director and CEO, Mr Adrian Cook, said:
“I am pleased to see substantial progress on the Buffalo project since announcing the farm-out to Advance Energy in December 2020.

Petrofac is an established and highly experienced global energy services provider and is well suited to ensure the success in the Buffalo project. They have already made encouraging progress in assessing our well plans, reviewing drilling rig alternatives and assessing the necessary long lead items for drilling.

The Buffalo redevelopment opportunity is well placed for success given its known production capability and low development cost and will be greatly enhanced as oil prices continue their recovery.

We look forward to an exciting year with drilling at the Buffalo Project as well as our Dorado FEED activities and the Apus-1 and Pavo-1 exploration drilling campaign”.


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