Carnarvon Suspends POE-8 for Production Testing

Wichian Buri Field
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On September 1 2006, the POE-8 well (well # 3) was drilled to a total depth of 1,312 meters, approximately 200 meters below the initially planned total depth of 1,100 meters. The deepening of POE-8 was a decision made on the basis of strong indications of hydrocarbons (both oil shows and high mud gas readings) encountered while drilling below 1,100 meters.

Logging indicates hydrocarbon pay of approximately 2 meters within the F sand, 3 meters within the G sand and 4 meters in a deeper sand at 1,250 meters. Neither the G nor the deeper sand has been flow tested on the concession to date.

Log interpretation also suggests that hydrocarbons may be present in shallower zones at 615 meters, 635 meters, 660 meters and 785 meters and in a deeper hydrocarbon zone within a fractured volcanic sill at 1,155 meters. Testing will be required to determine the hydrocarbon potential of these additional zones.

Drilling of the POE-8 well has now been successfully completed and the well has been suspended ready for production testing using the smaller workover rig currently operating on site.

This is an encouraging result with possible hydrocarbon pay.

interpreted from logs at several levels throughout the well from shallow depths of 615 meters to 1,250 meters. In particular, the log interpreted zone of possible shallow hydrocarbons intersected at 615 meters is consistent with similar log results in POE-2 and other adjacent wells. This interval has previously not been tested and successful flow testing at this level could add significantly to the reserves at the greater Wichian Buri Field.

Further analysis of the logging data at the POE-2 well (well # 1) indicates a zone of possible hydrocarbon pay of approximately 7 meters in the shallower section at a depth of 572 meters. This zone has never been flow tested before and will require testing to determine the hydrocarbon potential.

The POE-6 well was spudded yesterday, September 11th (well # 4) and is located 500 meters north and 35 meters structurally up dip from WB-3, a well drilled in the late 1980's that flowed oil to surface from a thin oil column over water. POE-6 will test a large area of possible reserves within a separate fault block to the west of the main Wichian Buri field. A success at this well could add significant additional reserves to the greater Wichian Buri Field.

Following the encouraging results from the log analysis of POE-8 and POE-2, Carnarvon will be undertaking a further analysis of all previous wells drilled at the Wichian Buri Oil Field with a view to identifying hydrocarbon zones overlooked by the previous Joint Ventures.


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