CEO update: February 2021
Last week we released our December 2020 quarterly report that contained an update on our progress across the business during the quarter.
As I covered in my note in that report, subject to some successes with planned activities during the coming 12 months or so, Carnarvon Petroleum could substantially grow its pool of resources for development beyond what we already have.
Another important point is that the Company is targeting low cost production resources.
Santos’ December 2020 Investor Day briefing outlined just how economical the Dorado field could be initially. If we are able to tie in either or both the Pavo and Apus resources to keep flow rates high, we have the potential to sustain these very low unit costs for a much longer period.
Low production cost assets not only offer high returns on investment but also provide down-side risk protection should oil prices soften.
In addition to Dorado and the near-field Pavo and Apus targets, we are also progressing the Buffalo project with the UK based AIM listed Advance Energy Plc.
If Buffalo contains the resources that the new interpretations have indicated, this field has the potential to be very low cost, and as the operator we want to ensure we move efficiently to test and develop this field in a timely manner.