The Outtrim project, WA-155-P, is in the Barrow SubBasin, within the Carnarvon Basin of the North-West Shelf of Australia.
During the year, Carnarvon and its former joint venture partner in the permit, Skye Exploration (“Sky”), completed an agreement whereby Carnarvon acquired 100% interest in the permit. Both parties will now apply for a retention license over the area of the Outtrim-East discovery and once granted, Skye will acquire a 100% equity interest in the retention license.
The Outtrim permit contains 3 graticular blocks, one of which contains the Outtrim discovery. Following the grant of the retention lease, Carnarvon will retain 100% interest in the remaining WA-155-P exploration permit which will comprise the remaining 2 graticular blocks.
As the marginal Outtrim discovery was not material to the Company’s portfolio, this outcome allows Carnarvon to advance the Palmerston prospect and other exploration targets at 100% equity. Carnarvon can also work towards a more desirable farm-out outcome for the project at this equity level.
The Palmerston prospect, which is located in the north-east graticular block of the permit, is a fault bounded late Triassic structure which sits on the eastern side of the Alpha Arch.
This late Triassic play has been successful in the Gorgon field, and there have been several discoveries on the Alpha Arch which have proved a working petroleum system in the region.
Carnarvon believes there could be significant gas potential in this area of the Southern Carnarvon Basin, and is actively looking for a potential farm-in partner.