Carnarvon updates Thailand operations

The WB-1 (Deep) exploration well has been abandoned after testing small amounts of natural gas with approximately 750 barrels of water per day from an open hole volcanic interval between approximately 1,500 to 1,590 metres. A second, shallower, 10metre thick volcanic section at approximately 1,200 metres, that had oil shows whilst drilling but no lost circulation, was perforated and found not to contain moveable hydrocarbons. WB-1 (Deep) will now be completed as a future water disposal well.

In the latter half of 2008 the Joint Venture plans to drill several Wichian Buri F sandstone development wells north of WB-1 (Deep) and will again target the same potential volcanic reservoirs in a structurally higher position as mapped on seismic data.

Drilling is anticipated to commence in five days on the moderate risk, high impact L44-R exploration well which is located approximately 10.5 kilometers south of the producing NSE oilfield and within the main volcanic reservoir play fairway. The well is targeting an approximately seven square kilometers structural closure with multiple potential volcanic reservoir targets between 800 to 1,300 meters. Drilling is anticipated to take up to 24 days.

The two contracted rigs have been operating continuously throughout most of 2007. Some necessary maintenance is currently being carried out resulting in one rig currently drilling. It is anticipated both rigs will be fully operational again shortly.