Carnarvon Petroleum advances Buffalo field redevelopment

Dec. 17, 2020
Carnarvon Petroleum Ltd., Perth, has farmed out 50% of its Buffalo production sharing contract (PSC) offshore East Timor in the Timor Sea to Advance Energy PLC. Carnarvon will retain operatorship.

Carnarvon Petroleum Ltd., Perth, has farmed out 50% of its Buffalo production sharing contract (PSC) offshore East Timor in the Timor Sea to Advance Energy PLC. Carnarvon will retain operatorship.

Advance will fund drilling of the Buffalo-10 well up to $20 million on a free-carry basis. The deal is to be finalized by Mar. 31, 2021, the due date for Advance to pay the funds into a joint venture bank account.

If Advance raises less than $20 million but more than $10 million, the transaction will proceed at a lower equity level equal to 2.5% per $1 million contributed.

A tender process to contract an international drilling management services company to assist in drilling—scheduled for late 2021—is under way.

Buffalo field was discovered by BHP Petroleum in 1996 in 25 m of water and developed from four wells and a small unmanned wellhead platform tied back to an FPSO. Production began in December 1999 at rates up to 50,000 b/d and ceased in November 2004 after a total production of 20.5 million bbl. BHPP decommissioned the field and removed all existing facilities and wells.

Carnarvon was awarded the Western Australian permit WA-523-P containing Buffalo in mid-2016. Subsequent work suggested the field held remaining contingent resources of (2C) 31.1 million bbl and 1C contingent resources of 15.3 million bbl. The 3C figure was estimated at 47.8 million bbl.

The company plans to redevelop the field which is now in East Timor waters following the recent offshore maritime boundary agreement between East Timor and Australia.

Buffalo-10 is targeting attic oil and will be completed as a development well.

On completion of the Advance Energy deal Carnarvon will retain between 50% and 75% interest depending on the level of Advance’s funding to the joint venture.