Carnarvon Petroleum Limited (ASX:CVN) has been granted an ASX trading halt as it awaits further exploration results from its Dorado-1 well offshore Western Australia.
The halt will remain in place until the earlier of the start of normal ASX trading on Wednesday, August 8 or when the announcement is released to the market.
Carnarvon’s shares have been on the move since the joint venture partners announced an oil discovery at the well in mid-July.
They last traded at 48.5 cents but have risen from 18 cents on July 13, prior to the announcement, to a new 12-month high of 52 cents in late July.
Sandstone intervals encountered
Carnarvon and project partner Quadrant Energy last week announced that they had encountered a number of encouraging sandstone intervals while drilling through the Crespin and Milne members.
Elevated gas readings and increased resistivity were observed in interpreted porous and permeable zones within these intervals, indicating the presence of hydrocarbons.
Carnarvon said these observations warranted wireline logging to obtain more definitive results as to, amongst other things, the nature of the oil, gas and condensate, and the characteristics of the reservoir.
This came as the 7-inch liner at Dorado-1 was set and cemented in place down to around 4,044 metres measured depth (MD) with the well drilled down to about 4,620 metres MD.
The well will continue drilling ahead to a revised deeper total depth of around 4,650 metres MD after which a suite of wireline logging tools will be run.
Dorado-1 is the second well to be drilled by Quadrant at the Phoenix project on the Canning Basin.
It and the other well, Phoenix South-3, have been designed to test the gas and condensate potential of the Caley Member.