LABYRINTH PROJECT

WA-521-P (Labyrinth project), is located in the Roebuck Basin in the North West Shelf of Western Australia.

This frontier acreage, which lies directly to the north of the Company’s Bedout permits, was acquired by Carnarvon in 2016 and has been de-risked following the Bedout discoveries. Carnarvon holds 100% equity in the WA-521-P permit, comprising an area of approximately 5,057 square kilometres.

The Discovery of hydrocarbons in the Late Triassic section of the Phoenix South-3 well, has enhanced confidence in the hydrocarbon charge within the adjoining WA-521-P Permit. Carnarvon is encouraged by the Late Triassic oil prone source rocks in the Labyrinth permit which are currently within the oil window. This has led to comparison with the proven Late Triassic petroleum systems of the Birds Head area of West Papua, Indonesia and Timor Island.

The nearby Nebo-1 well drilled in the early 1990’s and flowing around 2,000 barrels of oil per day on test, demonstrated that Triassic oil can migrate vertically into Jurassic reservoirs. With the WA-521-P permit containing several large Jurassic structures across multiple reservoirs, there is considerable potential contained within the Labyrinth project.

The standout target is the Ivory prospect, estimated to contain 420 million barrels of mean recoverable oil over two levels (refer to page 22). Ivory is located in approximately 350 metres water depth.

The primary reservoir of the mid-Jurassic Depuch sandstone is relatively shallow at approximately 2,700 meters below sea level. This reservoir is typically of excellent quality, with porosities averaging around 30% and consisting of hundreds of meters of thick deltaic sandstones. The secondary target is the Upper Bedout formation at approximately 3,400 metres below sea level. At the Ivory location, these sandstones are overlain by approximately 200 to 300 metres oseismically mapped shaly facies which support an effective seal. Both of the reservoir objectives in this Ivory prospect can be targeted with a single well.

Success in the Ivory target would open a new play fairway across 16 additional prospects and leads. With the geological analysis to date identifying 1.5 billion barrels of recoverable prospective resources within these prospects across the permit (refer to page 22), there is significant follow up potential.

The prospects within the Labyrinth project could be further strengthened by upgraded seismic data which would in turn increase the confidence to drill.

Carnarvon continued its farm out process to acquire a suitable partner to evaluate the significant oil prospects. With the industry’s increased focus on the region following the Dorado discovery, the nearby Labyrinth project represents a compelling exploration opportunity