Carnarvon Petroleum Ltd [ASX:CVN] is an oil and gas exploration company focused on the North West Shelf of Western Australia.
The company’s share price has soared in the past week, and today is no different with the stock still rising from Carnarvon most recent announcement.
The share price is up 13.64% for the day.
Striking oil has caused the share price to soar
Carnarvon Petroleum, together with its larger, private joint venture partner Quadrant Energy, has confirmed a significant oil discovery at the Dorado-1 well off the coast of northern Western Australia.
The offshore oil and gas explorer informed the market that light oil has been recovered from an excellent reservoir containing a gross hydrocarbon package of 96.1 metres and a net pay thickness of 79.6 metres in highly porous and permeable sands.
What does all this mean?
It means that the company has found substantial income for the near future, and investors aren’t wanting to miss out on this opportunity.
Carnarvon managing director Adrian Cook has described the discovery as ‘transformational’ for his company.
‘This is a significant discovery given the quantum of the net pay thickness, the quality of the oil and then extremely good reservoir characteristics,’ he said.
What does the future hold for Carnarvon Petroleum?
This latest discovery by the company truly is ‘transformational’.
Even with the oil that was found, Mr Cook advised there is still more drilling to come.
‘With multiple targets still left, the focus now is to complete the drilling program through the Baxter, Crispin and Milne Members,’ he said.
For Money Morning
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