Carnarvon Tests Thailand Wells

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Three wells drilled in late 2010 (WBExt-2AST1, WBExt-3 and WBExt-4) targeting the volcanics at the Wichian Buri Extension field were tested over the past month with sub-commercial results. Two of these wells will be recompleted and tested at the sandstone level, while a third has been sidetracked.

Two wells were drilled simultaneously over the past month (WBExt-4AST1 and WBExt-1D) using two rigs and these are waiting to be tested.

Recompletion and testing work will commence within the next few days when the service rig becomes available.

A significant production well, WBExt-1C, was producing stable oil at 3,400 bopd with no water cut until the morning of 5 January at
which time water breakthrough resulted in a decline to 2,300 bopd.

The L33-2 well, initially producing at 2,500 bopd, was shut-in recently in anticipation of sidetracking to test the WBV-1 volcanic in the L33 concession in an area defined as a prospective resource. This sidetrack is anticipated to commence in the next few days.

Due to decreased production from the above two wells and shutin of wells because of reaching the end of test periods, field production rates have declined to around 4,700 bopd.

Net production to Carnarvon is in the order of 1,900 bopd.

Near term production increases are anticipated from the testing of the recently completed wells and also from recompletion of late 2010 exploration wells into the sandstone reservoirs predicted by logging responses.


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