Carnarvon Completes Farmout of Buffalo Project
New well on the field is slated to begin drilling in late 2021.
Carnarvon Petroleum has completed the farmout of 50% of the Buffalo project to Advance Energy PLC. On 17 December 2020, Carnarvon announced that Advance Energy would acquire 50% of the Buffalo project off the west coast of Australia by funding the drilling of the Buffalo-10 well up to $20 million on a free carry basis. Advance met this funding requirement and now has a 50% interest in the project.
The well is on track to be drilled in late 2021, subject to securing a drilling rig, where the tendering process is already underway. Following the well, the joint venture will acquire development funding from third-party lenders and any additional funding will be provided by Advance as an interest-free loan.
The current plan is to suspend a successful well as a future producer and begin early development studies during 2021.