Carnarvon Energy has provided an update on the Buffalo project, which involves the redevelopment of the Buffalo oil field in the Timor Sea.
The Carnarvon operations team is ready to receive the Valaris JU-107 jack-up rig to commence drilling at the Buffalo-10 well-site. Logistics teams are in place, and all appropriate support services and equipment have been contracted. The last remaining regulatory approvals are expected prior to receipt of the rig.
Carnarvon understands the Valaris JU-107 is in the final stages of its current operations with the previous operator, with rig handover expected within the next two weeks.
Carnarvon Managing Director and CEO, Mr Adrian Cook, said:
'The team at Carnarvon are looking forward to receiving the rig and commencing drilling of the Buffalo-10 well. We will provide updates as drilling progresses and I look forward to being able to share the Buffalo-10 well results with our shareholders early in the new year.'
The Buffalo project involves the redevelopment of the Buffalo oil field in the Timor Sea. The field resides in only 30 metres of water with a reservoir depth between 3,200 and 3,300 meters below the sea bed.
The previous field proved the existence of very high deliverability reservoir containing high quality light oil that is expected to sell at a premium to Brent in today’s market.
Carnarvon, as the operator of the project, is preparing to drill a well that will penetrate the existing oil column (because the field was still producing when it was shut-in in 2004), and assess the extent of the revised mapped attic oil column.
Carnarvon’s mid case recoverable volume estimate is 31 million barrels (gross, 2C contingent resource). With the minimum economic field size estimated to be significantly lower than the mid case estimate, there is a strong likelihood the Buffalo-10 well will confirm an economic project. Accordingly, Carnarvon’s drilling plans provide for the Buffalo-10 well to be retained as the first production well in the redevelopment program.
For the above reasons, Carnarvon is also working with its project partner, Advance Energy, on plans to compress the timeline to first production once the Buffalo-10 well confirms a commercial oil resource. These plans include engaging with industry for supply and installation of suitable equipment to produce the oil.