Carnarvon Petroleum joins forces with Quadrant Energy on oil project

The development follows Carnarvon securing a 35 per cent interest in retention licence TR/3, which contains the previously discovered Blencathra oil resource, WA-155-P, which contains the Outtrim-1 oil discovery, and WA-486-P.

The objective of the project is to discover and aggregate sufficient oil resources to underpin a field development, with results from the Outtrim East-1 well central to this strategy.

Quadrant Energy, as operator, is currently planning to drill the well around June 2016 using the contracted Noble Tom Prosser drilling rig.

“This project illustrates the mutual confidence and strong relationship between Carnarvon and Quadrant Energy, as well as underpinning our focus on North West Shelf oil and gas exploration,”? Carnarvon Managing Director and Chief Executive Officer Adrian Cook said.

“The opportunity provides us with tremendous upside potential for a relatively modest investment, and represents another step forward in our strategy to position Carnarvon for a recovery in oil prices.”?

Under the agreement, Carnarvon will pay its 35 per cent share of the cost to drill the Outtrim East-1 well, which is estimated to be approximately AU$10 million.

Joint venture interests in the project are Quadrant (65 per cent, operator) and Carnarvon (35 per cent).

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