Carnarvon Petroleum, ECO Environmental Investments make strong start to Thailand drilling

Carnarvon Petroleum (ASX: CVN) and ECO Environmental Investments (ECO) have had a positive start to their WBEXT sandstone development programme in Thailand with the first well flowing 120 barrels per day of oil.

The WBEXT-5C in the L44/43 Concession is flowing as expected and the joint venture is currently drilling the WBEXT-6A well.

Ongoing development of the sandstone reservoirs is expected to steadily increase production and reduce the variability and decline over the longer term.

Meanwhile, discussions with the Agricultural Land Reform Office have started to address shut-in production of around 500 barrels per day (bpd) of oil.

While the Office had approved exploration drilling in the Bo Rang area, it has yet to give its approval to the production licence granted by the Department of Mineral Fuels.

This led to Bo Rang production being shut-in until the matter was reviewed.

Carnarvon and ECO are also assessing a number of volcanic prospects intended to address current production levels. These include two prospects scheduled for mid to late September 2012.

These sidetrack targets are expected to complement the steadily increasing production from the sandstone development.

Future plans

ECO is currently completing an overall oil development plan that could change the rest of the 2012 drilling programme.

However, the next wells to be drilled are another four WBEXT development wells, a sandstone exploration well targeting the oil wet sands intersected in the Na Sanun West exploration well and two volcanic development wells.

This is expected to take the joint venture into mid to late October 2012.

http://www.proactiveinvestors.com.au/companies/news/32398/carnarvon-petroleum-eco-environmental-investments-make-strong-start-to-thailand-drilling-32398.html

 

Category: ResourceAsia