Carnarvon Petroleum Limited (ASX:CVN) provides shareholders with an update on its interests in the L33/43, L44/43 and SW1A concessions onshore Thailand where Carnarvon has a 40% equity interest.
On 15 June 2012 Carnarvon announced that Pan Orient Energy had sold its 60% interest in these concessions. Carnarvon has been working with the new operator, ECO Environmental Investments Limited (ECO), on field operational plans since this time.
Established in 2000, ECO is a wholly-owned subsidiary of the Hong Kong and China Gas Company Limited (Towngas) which is listed in Hong Kong with a market capitalisation over US$ 20 billion. ECO specialises in the upstream energy business and is a market leader in Hong Kong and China. ECO not only develops a wide range of environmentally-friendly energy businesses but is also involved in innovation related technologies applicable to the energy industry.
In view of the rapidly increasing global demand for energy, and changes in China's national energy policy and energy structure, ECO focuses on the development of new energy projects in China that are low in emissions and pollution, covering resource exploitation in coal, oil & gas and unconventional gas, coal-based chemicals, liquefaction of coalbed methane, vehicular fuels and related areas. In Hong Kong, ECO operates LPG filling stations and is developing landfill gas utilization projects and a permanent aviation fuel storage facility for the Hong Kong International Airport.
ECO's experience in oil & gas developments includes Joint Venture operations with Sinopec in Jilin Province, exploration in Madagascar and Unconventional Gas developments in Guizhou and Shanxi Province.
Currently the Joint Venture is in the process of developing an overall asset Oil Development Plan ("ODP") that incorporates developing the multiple sandstone and the fractured volcanic reservoirs. While the ODP is anticipated to be continually refined, the initial target oil fields will be the Wichian Buri sandstone, Wichina Buri Extension sandstone, Si Thep sandstone and the WBV1 and WBV2 volcanic within the WBEXT area.
Drilling has now recommenced in the L44/43 concession with the initial wells appraising the recently discovered NS-4A sandstone, and WBEXT WBV1 and WBV2 volcanic.
The Joint Venture has also received confirmation of the WBEXT environmental approvals and drilling of the previously outlined WBEXT "E" sand development is anticipated to commence at the completion of the above appraisal program.
