Ann: Roc-2 Well Confirms Hydrocarbons-CVN.AX, page-32

Note this report from CVN regarding the ROC1 discovery :

Carnarvon Managing Director and CEO, Adrian Cook said, “the Roc structure is a particularly compelling appraisal proposition.

We are confident about several important elements in the structure, including the quality of the gas and condensate discovered in the Roc-1 well, the quality of the reservoir rocks that contain the discovered hydrocarbons, the outer extent of the structure via the gas water contact and the size of the structure as mapped on modern 3D seismic data (So we got 3D maps on this).

The Roc-2 well will seek to prove that gas and condensate exists down to the gas water contact (“GWC”), as depicted in Figure 1. In this case it is expected the volumetric range (refer Table 1) will narrow to the “Best” to “High” estimate for the aggregated contingent and prospective resources. This outcome, on our projections, would be above the minimum economic threshold.

Roc-2 has been assessed as a relatively low risk appraisal well with a successful outcome being a significant step forward in supporting a development hub for gas and liquids (oil and condensate) that also opens up the province to additional development and appraisal projects.

In terms of potential additional development and appraisal projects we continue to assess the Phoenix South structure. This project was always considered for its tie back potential to Roc and is still of interest in this regard.

We are also considering the regional significance of compelling hydrocarbon shows recorded in the deeper section of the Roc-1 well, that were observed down to the well’s total depth (We now know as the Milne Formation). The science clearly shows us there are prolific hydrocarbon generating source rocks within the Bedout sub-basin and our new 3D seismic data stretching beyond the Roc structure is showing us there are a significant number of large structures warranting further exploration within the area.”

And also remember this, minimum economic field size is around 325 Bscf and 17 million barrels of condensate (Gross).

We already found 270 Bscf and 13 million barrels of condensate at ROC1.

So we are "only" looking for another 55 Bscf and 4 million barrels of condensate at ROC2, in the deeper sand of the Caley Formation - anything above is a bonus.

On top of that, we have the extra bonus of the Milne Formation, where we also found hydrocarbons at ROC1 but did not have the instruments to measure it.

This is probably the reason why they are spending a lot money and time (100 days) at ROC2 Appraisal.

AIMHO.

DYOR.