PERTH, Australia – Carnarvon Energy has terminated drilling operations at the Buffalo field offshore Timor-Leste in the Timor Sea.
After leaving the Buffalo-10 appraisal well in a safe condition, the jackup Valaris JU-107 will demobilize.
Following completion of wireline logging operations, analysis has revealed the oil column to be residual and uncommercial. Carnarvon and partner Advance Energy had hoped to prove sufficient remaining oil volumes to warrant a redevelopment of the field, which was previously produced by BHP using an FPSO.
Carnarvon Managing Director and CEO Adrian Cook said the company would now turn its attention to the imminent Pavo-1 and Apus-1 exploration wells in the Bedout basin off Western Australia, both operated by Santos (Carnarvon 50%).
Leslie Peterkin, CEO of Advance Energy, said: “The results of B-10 are both disappointing and hugely surprising given the independently verified risk assessment which confirmed a highly likely commercial outcome from the well. Across the JV, we invested a significant amount of technical work into the project which underpinned our high degree of confidence that the well would unlock the significant value of the field.
“The post-well evaluation indicates that the well was drilled into the hanging wall of a fault, although uncertainty in seismic resolution also contributed to the reservoir being significantly deeper than expected at this location. It is not the case that this result means that all of the attic oil volumes certified by RISC have been negated.
“The Buffalo Joint Venture will conduct further technical analysis in the coming weeks to fully understand why the attic was not encountered as prognosed at the drilled location. We believe it is likely that the JV will relinquish the Buffalo asset as neither company wishes to fund a second appraisal well in the field.”