Shares in Santos Ltd (ASX: STO) and Carnarvon Petroleum Limited (ASX: CVN) are up 2.6% and 7% respectively today after the two oil producers revealed positive drilling results at their Caley Reservoir located at the Dorado 3 joint venture oil fields.
Santos CEO, Kevin Gallagher, enthused: "The results are very encouraging for development of the shallow-water Dorado field, with the test indicating very high potential flow rates of around 30,000 barrels per day from each single production well in the Caley reservoir. This positive result represents a significant step in progressing Dorado as one of Santos' most exciting new development projects."
Santos holds an 80% stake in the joint venture with Carnavon holding the balance, but investors sent Carnavon shares higher as the project is more important to its outlook compared to Santos which is primarily a LNG producer.
Carnavon is no minnow though, with a market value around $630 million despite reporting no sales and a net operating loss of $39.7 million for the nine months to June 30 2019.
