Dorado a once-in-a generation find for Spoke client Carnarvon Petroleum

Carnarvon Petroleum CEO, Adrian Cook, spoke exclusively to the Australian Financial Review’s Angela Macdonald-Smith, chief of staff for resources and energy, about why the company’s success looks certain to continue.

In the article, published online and in print last week, Cook attributed the company’s impressive growth over the past 12 months to persistence.

The drilling of the Dorado-1 well on the North West Shelf – home to Western Australia’s largest petroleum deposits – was the result of a unique partnership between privately-backed Quadrant and technically-driven Carnarvon.

Together, the partners drilled where others wouldn’t to unearth the shelf’s third largest oil deposit to date – it is estimated Dorado holds 171 million barrels of oil, alongside significant stocks of gas and condensates, making it a “once-in-a-generation” find, according to Cook.

Thanks to the rich find, Carnarvon’s share price skyrocketed in early August to 63c, and while the stock currently sits down at 42c (up more than fivefold in the past 12 months and valuing the company at over $490m), Cook believes the Dorado success story is just beginning.

According to the article, here are the five top reasons why Carnarvon Petroleum’s share price will undoubtedly continue to boom:

  1. The company’s stock has more than quadrupled over the past 12 months.
  2. It’s well on the North West Shelf – Dorado-1 – is Australia’s third largest discovery of oil, holding an estimated 171 million barrels.
  3. Quadrant will soon be acquired by leading independent oil and gas producer in the Asia-Pacific region, Santos, for at least $US$2.15b. This will make Santos Carnarvon’s 80 per cent partner as the company heads into Dorado’s next phase.
  4. In addition to the rich oil stores, the volume of minable gas at Dorado is estimated at 884 billion cubic feet and the volume of condensates sits at an estimated 36 million barrels.
  5. Carnarvon Petroleum has a number of other targets lined up for exploration over the next few years in the Bedout sub-basin along the north-eastern fringe of the Carnarvon Basin.