3D Seismic Survey Identifies More Drilling Targets at Wichian Buri

Carnarvon Petroleum says preliminary analysis of the 3D seismic data, together with reprocessed 2D data, has identified several prospects, which have confirmed the Joint Venture's positive assessment of the exploration potential of the field and the likelihood of significant reserve growth and further production opportunities elsewhere in the permits.

The most significant of these prospects is a large feature updip of the Huai Phai-1 well, drilled in 2003 by the previous operator Pacific Tiger Energy, in which oil was recovered at the level of the "F" sandstone which is the producing reservoir in the Wichian Buri Oil Field.

The updip Huai Phai prospect is considered by the Joint Venture to have substantial prospectivity and it has been decided to include this well as an additional well in the Phase 1 drill program, to be drilled as soon as possible.

Preparation for Phase 2 drilling underway

It has been previously announced to the ASX that the Joint Venture plans to drill up to 20 wells in a second phase of drilling commencing at year end (in addition to a total of 6 wells (now 7 wells) in the current Phase 1 drilling program).

The preliminary results of the reprocessed 2D and 3D seismic and the new 3D seismic have identified a number of exploration targets, many of similar geology to that described in Appendix A. Accordingly, the Joint Venture has agreed to order sufficient drill pipe, beam pumps and other long lead items to enable this program to proceed with minimal risk of delay. Government approval is being sought for the Phase 2 drill program, that will help to ensure that the Joint Venture will be in a position to immediately commence the development and exploration program at the end of the year following completion of the Phase 1 development drilling on the Wichian Buri Oil Field.

The Joint Venture has contracted a smaller workover rig which has been mobilized on site. This drilling rig is currently carrying out some minor workovers on existing wells to improve production. Initial work has been successful with increased production rates from the N4 well.

In September, the workover rig will commence preparation of the Phase 1 wells for production testing. Each well will be flowed for a minimum of 1 month with both the "F" and deeper "G" sandstone reservoirs tested for commercial flow potential.

Following completion of production testing late in October, the rig will be deployed to extensively workover some of the existing production wells.

"I am delighted with the outcomes of the Joint Venture meeting in Thailand last week and the exciting targets generated by the recent 3D seismic program. We continue to be surprised by the opportunities presented by the Wichian Buri Oil Field for further production from existing reserves and identification of new prospects outside the current production field."