Ann: Dorado-1 Well Update, page-2

For those who haven't seen the announcement

Highlights

•   The joint venture has commenced planning to drill the Dorado-1 exploration well
  
  
•   The aim is to discover additional resources that can be combined with any Roc development
  
  
•   Carnarvon estimates the primary Caley Sandstone target contains a mean prospective resource of
  
  545bscf of gas and 31mmbls of condensate1
  
  
•   Drilling is expected to commence in the second half of 2017
  
  Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) is pleased to inform shareholders that the joint venture has committed to acquiring long lead items for the Dorado-1 exploration well and planning for the well is underway.
  
  The Dorado-1 well is an exploration well which has a number of targets. The primary target is the proven Caley Sandstone which Carnarvon estimates to contain a prospective mean resource of 545bscf of gas and 31mmbls of condensate1. The Milne Sandstone is a secondary target which may contain equally attractive resources, albeit with a slightly higher risk. The prospective resource estimates for the Dorado-1 well are outlined on page 3 and 5 of this announcement.
  
  The cost estimate for the well has not yet been finalised, however the expectation is that Dorado-1 will be drilled at a lower cost than the Roc and Phoenix South wells. This is due to reducing industry cost structures and less time drilling as a result of the shallower target depth in comparison to those in the Roc and Phoenix South wells.
  
  Managing Director, Adrian Cook said “This is a tremendous opportunity to test another quality prospect in the Bedout sub-basin. Confirming significant hydrocarbon volumes with this well would strongly underpin the economic proposition in this basin.
  
  This well could also play an important part in determining the future development scenarios for the Roc and Phoenix South gas and condensate discoveries. A significant Dorado discovery could be developed as the tie-in point for the Roc and Phoenix South resources with options for the gas to be used purely for domestic use, and/or for LNG purposes.”