Santos Acquires Stake in Carnarvon Basin

- Santos Acquires Stake in Carnarvon Basin

Friday, June 10, 2011
Santos Ltd.

Santos announced its acquisition of a 75% interest in the Carnarvon Basin permits WA-323-P and WA-330-P that host Winchester, a large prospect which has a geological setting similar to the recent Zola gas discovery.

The farm-in agreement with Octanex N.L was conditional on various regulatory approvals including renewal of the permits, which have now all been received.

Santos Vice President WA & NT, John Anderson, said Winchester presented a significant growth opportunity for Santos in Western Australia, and planning was underway for a 3D seismic survey later this year.

"Under the arrangement with Octanex we have three years in which to drill a well, but we interpret Winchester as a robust prospect so we are considering bringing that forward, possibly by the end of next year," he said.

"It's an attractive prospect, in shallow water and if successful, is well located for a variety of development options."

Under the farm-in, Octanex will be free-carried in respect of its 25% interest through the 3D survey, the first well and other exploration costs, except for any follow-up wells.

Santos is operator of both permits.

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Tap Oil Divests Carnarvon Interests

Tap Oil Divests Carnarvon Interests

Monday, April 11, 2011
Tap Oil Ltd.

Tap Oil has agreed to sell its interests in a portfolio of non-core assets in the Carnarvon Basin to companies in the Sydney based and privately owned Hardie Energy Group. As consideration for the assignments, the companies will pay Tap $2,000,000. Further details of the assets and the assignments are set out in the attached schedule.

The completion of the sale of the portfolio is subject to joint venture and government approvals, with an effective date of 1 February 2011.

Tap's Managing Director/CEO Troy Hayden said, "While still having tangible value, these interests are better placed in the hands of companies like the Hardie Energy Group.

"The sale of these interests allows our technical staff to focus on our three core areas: being Zola and WA-351-P, Carnarvon Basin; Gulf of Thailand; and Ghana."

The Hardie Energy Group is a significant shareholder in fellow Sydney based explorer Energetica Resources Pty Ltd, which holds nearby acreage in the Carnarvon Basin and will manage the asset interests going forward.

Carnarvon Boosts Reservoirs in Thai Concessions

Carnarvon Boosts Reservoirs in Thai Concessions

Friday, April 08, 2011

Carnarvon Petroleum Ltd.

Carnarvon announced the results of an independent reserves evaluation of its Thailand concessions as at December 31, 2010.

Carnarvon has a 40% equity interest in the SW1, L33/43 and L44/43 on-shore concessions (Pan Orient Energy Corp. 60%). The reserves estimates data has been certified by international energy consultants Gaffney, Cline and Associates (GCA).

At the end of the calendar year, proved and probable reserves at Carnarvon's Thailand concessions totaled 20.4 million barrels. This comprised proved reserves of 4.7 million barrels plus probable reserves of 15.7 million barrels.

The estimates include new oil field discoveries in 2010 in the Wichian Buri Extension (WBExt) field within the L44/43 concession and the L33 field in the L33/43 concession. The increase in reserves in these fields was offset by a downward revision of previously announced reserves in the NSE Central and NSE-F1 fields within the L44/43 concession. Carnarvon indicated the potential for the downward revision at these two reservoirs in October 2010.
The net present value of proved and probable reserves after tax for the three concessions in Thailand, using forecast oil prices and discounted at 10%, is A$307 million, representing A$0.45 per Carnarvon share, based on the current 687.8 million shares outstanding and an exchange rate of A$1.00 / US $1.04.

CEO Comment

Carnarvon CEO Ted Jacobson said, "These reserves estimates provide us with a much better understanding of this series of oil fields and give us greater confidence in the assessment of remaining oil.

"These are important assets for Carnarvon; they provides us with important cash flow and exploration and appraisal upside whilst enabling us to continuing to focus on upside via exploration and acquisitions in other regions.

"While we expected the revisions in reserves for the NSE Central and NSE-F1 reservoirs, the greater percentage of more conventional sandstone reservoirs means a longer, more consistent and predictable production for Carnarvon moving forward once these sandstone reservoirs have been fully developed.

"We have a long future in this range of assets and are excited about the broader opportunities for Carnarvon that the long term positive cash flows can achieve," said Mr Jacobson.