CARPATHIAN RESOURCES LIMITED - ASX: CPN

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Description

Carpathian Resources Limited ("Carpathian") is an oil and gas explorer and producer with a focus on Central Europe. The Company is listed on the Australian Stock Exchange (ASX Code: CPN). The Company has its Registered Office in Sydney, New South Wales, Australia.

Janovice Gas Field (60% interest)

The Janovice block is located in Northern Moravia, Czech Republic. It is situated some 20 km, south of Ostrava, a major industrial centre and five kilometres from Carpathian’s 50% (75% before payout) owned Krásná oil field. The Ja3a discovery well was drilled between 16 March 2004 and 11 April 2004 when it reached a total depth of 1,108 metres. The pipeline link to the national transmission system, paid for by Carpathian’s partner as part of the farm in agreement, was completed in October 2005 when the well was brought on stream. The initial analysis and testing of the well indicated a net gas column of about 33 metres with gas in place of 1.5 to 1.7 billion cubic feet (43-48 million cubic metres), based on data collected during a short production test. In January 2006, after the well had been in production for just over 2 months, a scheduled second production test was carried out to better determine the amount of gas in place. The result of this second and more reliable test was that the estimate of the gas in place was increased to 3.8 to 4.0 billion cubic feet (108-113 million cubic metres).

Morava, 90% interest (contributing 100%)

The Morava project is located in the northern part of the Vienna Basin, a prolific oil and gas producer. There is potential for oil and gas prospects in both stratigraphic and structural traps at varying depths. Of considerable interest to the company was the discovery by OMV, the Austrian oil and gas company, of an estimated 140 bcf gas field only 20 km north east of Vienna. Although this is approximately 75 km to the south west of the Morava permit it does confirm that there are good possibilities for substantial gas finds in the Vienna Basin.

Although there are a number of leads in the permit area it was decided to concentrate on features in the north-eastern part of the license which were of a size that could have a great impact on the company. A seismic survey over the leads commenced on 14 October 2005 and was curtailed by the contractor on 10 November 2005, leaving about 15 kilometres uncompleted. The survey was completed in late January 2006 and delivered to the contractor for processing.

The operator delivered a geophysical interpretation report at the end of June 2006. The report identified two potential gas targets (28-55 bcf) in the flysch sequence of the Magura Nappe and a 5 million barrel target in the Neogene of the Vienna Basin. A fourth target is still being assessed. All of these targets are now being subjected to a detailed technical review, a thorough risk assessment and a detailed economic analysis. Subject to this review it appears likely that one or more targets will be selected for drilling perhaps as early as the last quarter of 2006. However, if further specialised geophysical investigation of the current data set is required it is more likely that any drilling will be in 2007 because of the time required to plan and build a drilling location.

Mošnov, 90% interest (contributing 100%)

The Mošnov permit located near the Ostrava airport was granted in March 2003 and was renewed in March 2004. The project area lies close to the northern edge of the Carpathian flysch belt, an area where Upper Silesian Coal Basin (Palaeozoic) is overlain by only 400-500 metres of Tertiary. While it had been long recognised that the coals could source reservoirs of Tertiary age it was thought that any targets in the area would be too small to be economic. However, a thorough review of the permit in March 2006 identified an attractive drilling target at around 400 metres in Tertiary sandstones and sands within the Carboniferous section immediately below. The prospect is based on intersections in a network of some 28 coal exploration holes, 0.5 – 1 kilometres apart. It lies between the depleted Kremlin gas field to the north and the Priobor-Klokocov Field to the south which it is reported produced 23 billion cubic feet of gas between 1945 and 1984 at rates of up to 5 million cubic feet per day.

The proposed location is close to an updip of a coal exploration hole from which a gas flow of 80,000 cubic metres (approximately 2.8 million cubic feet per day) was recorded in 1961, some two years after it had been drilled. While this open flow rate would not be sustainable, an economic analysis presented with the review indicates that given the strong gas price and the proximity of the gas transmission network, sustainable rates of as little as 10% of this figure could be economically attractive.

At the end of June 2006 preparations to drill Mo-1 Skotnice well on the permit were moving ahead. A number of bids have been received from drilling contractors and one will be selected early in the next quarter. The intention is to drill the well in the early part of the fourth quarter 2006, but this remains subject to confirmation from the contractor, finalisation of the land access and the construction of the drilling pad.

Rožnov, 90% interest (contributing 100%)

The Rožnov project area is a group of 4 permits located approximately 25 kilometres south west of Carpathian’s Krásná and Janovice areas. The area has numerous producing oil and gas fields.

The permits cover an area of prospective sediments with varying possible trapping mechanisms on a faulted margin, the Sub-Beskydy Step, a bulwark on the edge of the Palaeozoic European Platform that slopes southwards beneath the Carpathians, and overlain by a series of Silesian and Sub-Silesian flysch nappes. The most exciting leads are a series of reasonably deep features at the base of a large basin slope, identified by the strong seismic amplitudes, which have been interpreted to be autochthonous fan sequences and could have major potential (100 bcf). Similar fan sequences of Palaeogene age have been described on trend to the southwest.

The Company recorded a seismic program in September 2005 principally over these leads as well as a number of smaller features on the platform edge. The initial interpretation report received late in the first quarter 2006 was encouraging and it is now being compared in detail with a second report received in June 2006 from the geophysical contractor.

Also completed during the last 12 months was a specially commissioned feasibility study of pipeline routes and drilling locations that threw up differences between local and regional planning requirements. While progress has been made it was recognised early on that the best strategy would be a measured approach and drilling is now not likely to occur before 2007.

Mine For

oil, gas

Location of operation(s)

Czech Republic, Vienna

Address

Zenith Centre, Tower A, Level 20, 821 Pacific Hwy
CHATSWOOD, NSW, AUSTRALIA

Phone

(61 2) 9410 9294

Email

Website

http://www.carpathian.com.au/

Last Updated

28/04/2010