Atwood Eagle Spuds Phoenix South-1 Well Offshore Western Australia

Well Detail

The primary target for the Phoenix South-1 well is the interbedded sandstones, siltstones and claystones of the Early to Middle Triassic Lower Keraudren Formation and underlying Locker Shale, commencing at an approximate depth of 11,811 feet (3,600 meters).

Two of these sandstone packages were gas-bearing in the Phoenix-1 well, some 8 miles (13 kilometers) to the North of the Phoenix South-1 location. It is considered likely that multiple reservoir/seal pairs will be intersected throughout this well.

Extensive wireline logging and both pressure and fluid sampling are planned if hydrocarbons are intersected, as well as a collection of reservoir core samples. The Joint Venture intends to plug and abandon the well in accordance with normal good oilfield practice regardless of the drilling outcome.

The forward plan is to drill down to just above the primary target and set casing. These operations are anticipated to take around one month.

In addition to the above, Carnarvon considers there to be additional potential in the Early Jurassic North Rankin and Late Triassic Upper Keraudren Formations, above the Middle Triassic Cossigny Limestone. Reservoir quality sands were intersected in these formations in the Phoenix-1 and Phoenix-2 wells. These formations will be drilled within closure in the Phoenix South-1 well. These sands were not hydrocarbon bearing in the previous Phoenix wells due to them being interpreted to have been out of closure.

Equity Holders

The equity interest holders (upon satisfaction of the farm in agreement terms) are:

• Carnarvon Petroleum: 20 percent
• Apache Energy (Operator): 40 percent
• JX Nippon: 20 percent
• Finder Exploration: 20 percent