CARNARVON PETROLEUM LIMITED - ASX: CVN

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Description

Carnarvon Petroleum Limited (“Carnarvon”) is a Perth based company listed on the Australian Stock Exchange. The Company’s principal activity is oil and gas exploration and production.

THAILAND

L44/43, SW1A & L33/43

A total of 25 wells were drilled in the SW1A permits, during the 2008/2009 financial year, resulting in 17 commercial oil production / testing wells, delineation of one new oil field, and several new oil pools. The remaining eight wells all contained promising oil shows and several have sidetrack potential. A production license and environmental approval has been granted over the Na Sanun East (“NSE”) oil field allowing field development drilling to commence. Exploration drilling in the northern exploration block L33/43 failed to intersect commercial volumes of hydrocarbons. However, the L44-W oil discovery, in the north eastern corner of L44/43, is interpreted to spill over into the southern end of L33/43. Appraisal drilling of the L44-W oil discovery is anticipated in both concessions over the next 12 months.

L20/50

Carnarvon, and partner Sun Resources, were granted the L20/50 exploration concession in January of 2007. The L20/50 concession is situated approximately 30 kms to the southeast and on trend with the largest onshore oil field in Thailand at Sirikit. The permit is around 60 km to the west of Carnarvon’s 40% owned Phetchabun Basin producing assets. The concession covers around 4,000 km2 and is lightly explored. Around 1,000 km of 1980’s vintage 2D seismic data is available in paper format and six wells have been drilled in the block (three shallow at around 500m and three deeper). One previously drilled well in 1982 at Nong Bua-1 intersected oil shows which Carnarvon believes were not fully tested. Carnarvon is continuing to investigate the possibility of twinning or re-drilling this well. Carnarvon has also digitized and reprocessed the bulk of the available 2D seismic data and the interpretation of that dataset showed the potential for a large number of structures of significant potential size. 500 km of new 2D seismic was acquired in September of 2009. The processing and interpretation of the new data, incorporating the reprocessed data, will be fast tracked to allow for a decision on the location and number of exploration wells to be drilled in 2010. Geological analysis of seismic and previous drilling data has concluded that a number of play types are apparent, including Sirikit style fans, Wichian Buri style sandstones, and Na Sanun style volcanics.

L52/50 and L53/50 Blocks

The Company was recently awarded by the Department of Mineral Fuels (“DMF”) in Thailand for concession rights in petroleum exploration and production the two areas described as Blocks L52/50 and L53/50 (“the Concessions”) onshore Thailand within the Surat-Khiensa Basin. Pearl Oil (Petroleum) Ltd (“Pearl”), an independent oil and gas company with exploration and production (E&P) activities focused exclusively in South East Asia, submitted the bid as operator on behalf of Pearl and Carnarvon, each company participating at a 50% equity level. The combined area of the two blocks is large, comprising approximately 6,950 km2, however both are lightly explored with only two deep wells and limited seismic data available. There has been minimal exploration over the area and little public knowledge is available about the Surat-Khiensa Basin, however work completed to date and Carnarvon’s regional knowledge suggests this is an area with good potential for hydrocarbon exploration. Carnarvon and Pearl were together the sole bidders for this block and the Company anticipates award in late 2009.

AUSTRALIA - WA-435-P WA-436-P WA-437-P & WA-438-P

The four permits are situated in the north-western part of the Bedout Sub-basin within the greater Roebuck Basin, offshore Western Australia. The blocks lie in an under-explored area that has received little recent attention, between the prolific Carnarvon Basin hydrocarbon province to the southwest and the Browse Basin to the northeast. The town of Port Hedland lies approximately 150 km to the south of the permits and Broome lies 250 km to the northeast. Water depths range from 35 to 265 metres and the permits cover a very large area of more than 21,000 km² (268 graticular blocks).

AUSTRALIA - WA-399-P

WA-399-P was awarded on 7 May 2007. The permit covers an area of 50km² located between the Pyrenees and Macedon oil and gas fields and the Leatherback oil accumulation. Carnarvon has completed the reprocessing of all available seismic over the permit (550 km²). The current work programme requires acquisition of 315km of new 2D seismic and Carnarvon is reviewing vessel availability and prices.

INDONESIA - Rangkas Block

September 2009 Carnarvon Petroleum entered a farm-in agreement with Lundin Petroleum for 25% of PSC, the Rangkas Block, located in the West Java Basin, onshore West Java. The Rangkas Block covers an area of approximately 4,000 km2. Previous drilling in the block and surface oil seeps have confirmed an active petroleum system. Several prospects and leads have been identified in the block from earlier 2D seismic.

Mine For

oil, gas

Location of operation(s)

Thailand, Western Australia, Indonesia

Australian Basins

Carnarvon

Address

Ground Floor, 1322 Hay Street
WEST PERTH, WA, AUSTRALIA

Phone

08 9321 2665

Email

Website

http://www.carnarvonpetroleum.com/

Last Updated

28/04/2010