The Carnarvon Energy Ltd (ASX: CVN) share price is racing higher today after the company released an operations update.
At the time of writing, the energy producer's shares are up 7.72% to 30.7 cents.
This means that since hitting a 52-week low of 21.3 cents on 24 February, Carnarvon Energy shares have gained 44%.
Let's take a closer look at what the company announced before market open.
How is Carnarvon Energy tracking along?
The Carnarvon share price is taking off today. This comes after the oil and gas exploration company provided an update on the Pavo-1 well in the WA-438-P exploration permit.
Located around 160 kilometres north-east of Port Hedland in Western Australia, the offshore well is currently being drilled for hydrocarbons.
Santos Ltd (ASX: STO) holds a 70% stake in Pavo-1, while Carnarvon Energy retains the remaining 30%.
Carnarvon Energy advised the Pavo-1 well had drilled to around 3,282 metres measured depth (MD) before suspending operations.
Management made the decision to temporarily halt drilling due to cyclone activity in the area.
The company said drilling within the Caley to Crespin reservoirs indicated "porous and permeable reservoir intervals with similarity to the Dorado reservoir". The latter is one of the largest offshore oil discoveries on the North West Shelf, a region of Western Australia.
Pavo-1 well will be drilled into the northern accumulation and is targeting a resource of 82 million barrels of liquid hydrocarbons.
So far, elevated gas readings and increased resistivity were observed between 2,944 metres MD and 3,001 metres MD. The company says this indicates the presence of hydrocarbons.
Carnarvon Energy stated the rig has now returned to full manning levels and is preparing to recommence drilling and logging operations.
About the Carnarvon share price
The Carnarvon share price dropped almost 40% from mid-January until 24 February before rebounding strongly.
When comparing against this time last year, the company's shares have gained roughly 14%.
Carnarvon Energy has a market capitalisation of around $477.44 million, and approximately 1.57 billion shares registered on its books.
