Carnarvon Petroleum, Finder Exploration swap Roebuck basin interests

Carnarvon Petroleum and Finder Exploration have entered into a heads of agreement to swap 50% of Carnarvon’s WA-435-P permit for 50% of Finder’s WA-436-P, WA-437-P, and WA-438-P permits.

Offshore staff

PERTH -- Carnarvon Petroleum and Finder Exploration have entered into a heads of agreement to swap 50% of Carnarvon’s WA-435-P permit for 50% of Finder’s WA-436-P, WA-437-P, and WA-438-P permits. Under terms of the agreement, Finder will assume operatorship of all four permits.

The four permits are in the northwestern part of the Bedout sub-basin within the greater Roebuck basin, offshore Western Australia. The blocks lie in an under-explored area between the Carnarvon basin hydrocarbon province to the southwest, and the Browse basin to the northeast.

Water depths range from 35 to 265 m (115 to 869 ft) and the permits cover an area of more than 21,000 sq km (8,108 sq mi).

Only six wells have been drilled in the permits to date. The two wells, Phoenix-1 and Phoenix- 2, drilled on the large Phoenix structure in WA-435-P, both intersected extensive gas columns within lower-porosity, mid-Triassic reservoirs, the company says. Phoenix-1 recorded 110 m (361 ft) of net gas-bearing section. The company believes further work is required to determine whether the gas discovery at Phoenix-1 could flow at commercial rates.

A larger, untested structure in WA- 435-P lies directly on trend with the Phoenix structure, to the southwest. Further to the southeast in WA-437-P lies another large, untested structure. Regional geology suggests that reservoir quality improves southward toward these prospects, but this model will need to be confirmed by drilling, the company says.

Other viable plays include possible oil exploration potential at the shallower Cretaceous-aged levels. Carnarvon and Finder intend to carry out numerous studies to evaluate this potential.

The government-approved work program for the permits, for the initial firm three-year term, comprises seismic reprocessing, and the recording of an aeromagnetic survey and technical studies. This will include a complete analysis of the gas intersections in the Phoenix-1 and Phoenix-2 wells. The second three-year term is planned to consist of seismic acquisition and the drilling of at least one well in each permit.

08/06/2009

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