Page 6 - AsianOil Week 06 2022

AsianOil COMMENTARY AsianOil

Carnarvon turns attention to

Western Australia after Timor-

Leste disappointment

Australia’s Carnarvon Energy is turning its attention back to waters offshore

Western Australia after declaring the Buffalo-10 well offshore Timor-Leste to
be uncommercial

PERFORMANCE AUSTRALIA’S Carnarvon Energy suffered a recoverable volumes at Buffalo at 31mn barrels
setback to its exploration drilling campaign off on a gross best estimate contingent resource
WHAT: Timor-Leste in late January, when it reported basis. The company had said there was a strong
Carnarvon Energy is that the Buffalo-10 well had been found to be likelihood that results from Buffalo-10 would
turning its attention to uncommercial. Following this disappointment, confirm the economics of sanctioning the
exploration offshore the company said it would be turning its atten- project.
Western Australia. tion to exploration offshore Western Australia. However, expectations did not play out. Car-
Indeed, according to a February 9 filing with the narvon said in a short statement that the oil
WHY: Australian Stock Exchange (ASX) Carnarvon column
The company suffered has now kicked off drilling at the Pavo-1 well in Advance’s CEO, Leslie Peterkin, was quoted
a setback when its the Bedout Basin alongside partner and operator by media as saying the well results were “both
Buffalo-10 well offshore Santos. disappointing and hugely surprising given the
Timor-Leste was found to Carnarvon’s shifting focus illustrates the independently verified risk assessment which
be uncommercial. challenges and uncertainties surrounding off- confirmed a highly-likely commercial outcome
shore exploration. Indeed, the Buffalo-10 result from the well”.
WHAT NEXT: appears to have taken the company and its 50:50 “The post-well evaluation indicates that the
Drilling has already partner in the Buffalo field, Advance Energy, by well was drilled into the hanging wall of a fault,
begun on the Pavo-1 surprise. although uncertainty in seismic resolution also
well, in which Carnarvon contributed to the reservoir being significantly
partners with Santos. Disappointment deeper than expected at this location,” Peter-
Carnarvon had previously placed the mid-case kin continued. “It is not the case that this result

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