The Carnarvon Petroleum Limited [ASX:CVN] share price has surged by 25% at the time of writing.
This has doubled the price of its close on Friday trading at 17.5 cents, before the announcement of Monday’s pre-news trading halt.
Carnarvon Petroleum Limited’s share price rides high on oil discovery
The oil discovery at Western Australia’s North West shelf has skyrocketed CVN’s share price, where it continues to ride the highs from the project.
News of the discovery on Wednesday travelled quickly, seeing shares surge to a high of 51%, trading at 47 cents.
This comes off the back of the joint venture between Carnarvon and Quadrant Energy, who made the discovery in the primary target of the Dorado-1 well.
CVN said there was positive observations from the Dorado-1 well, specifically in elevated gas readings and increased resistivity seen in in the area, which is indicating the presence of oil and gas.
Which means wire logging is needed in order to obtain more definitive results about the nature of the oil and gas down there.
Carnarvon Petroleum’s managing director Adrian Cook said the result was transformational for the company, saying:
‘This is a significant discovery given the quantum of the net pay thickness, the quality of the oil and the extremely good reservoir characteristics.’
New territory for Carnarvon Petroleum Limited’s share price
This is all new ground for CVN, which saw its share price reach a record 12-month high. Even after they highlighted the possibility that the Dorado structure could hold a substantial oil source.
Currently CVN has operations with rig drilling at approximately 4,620 metres MD.
Going forward, Carnarvon said they would continue drilling ahead to a revised deeper total depth of the above 4,620 metres, to be started after a suite of wireline logging tools is run.
This combination of light oil, and excellent reservoir characteristics could continue to be good for Carnarvon Petroleum’s rising share price.
For Money Morning
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