Carpathian Begins Production from Ja3a Gas Well in the Czech Republic

Carpathian reports that gas production has commenced from its Ja3a well located in the Czech Republic.

Carpathian has a 60% interest in the well, with the remaining 40% held by Unigeo, the Czech based operator. Ja3a will be revenue enhancing immediately; it has the potential to contribute in excess of AUS$340,000 (c£145,000) by the end of 2005.

The initial production rate will start at 20,400 m3 per day (0.72 million cubic feet per day), and this will be carefully increased to 25,000 m3 per day (0.88 million cubic feet per day). At the current price, which is greater than US$6 per mcf, that would produce an annual cashflow to the Company of more than US$1.4 million (c£598,000).

Carpathian Chairman Grant Priest commented:-

"We are extremely pleased for our maiden production to have begun. The commencement of production at Ja3a is the start of what we hope to be a long and profitable involvement in gas production in the Czech Republic. With prices for gas being above US$6 per mcf (thousand cubic feet) Carpathian expects a healthy income stream from our 60% interest."