Carnarvon Encouraged by Increased Industry Interest in Western Australia

Carnarvon Petroleum Limited provides an update covering its interests in the Bedout sub-basin, offshore Western Australia. Carnarvon’s interests comprise 50% in exploration permits WA-435-P, WA-436-P, WA-437-P and WA-438-P and 100% in exploration permit WA-443-P as outlined on the following page.

Farm-out process commences as scheduled

Carnarvon advised that the farm-out process for its interests in exploration permits WA-435-P and WA-437-P commenced as scheduled. Carnarvon’s joint venture partner in these permits, Finder Exploration Pty Ltd (“Finder”), recently issued invitations to relevant  parties to consider this farm-in opportunity. Attached is a copy of the executive overview issued by Finder as part of the invitation to attend the farm-in data room.

New 3D seismic data being acquired

Fugro Multi Client Services Pty Ltd (“Fugro”) commenced the acquisition of a substantial ~4,247 km2 new 3D seismic data program (the “Zeester” 3D acquisition) on 13 December 2011. The acquisition area covers WA-435-P, WA-436-P and WA-443-P as illustrated on the  image above. The acquisition program is expected to take approximately three months to complete, subject to weather and other operational factors. The data will be available to Carnarvon on a multi client basis, although at this stage Carnarvon has not committed to licence the data. The new seismic data is expected to be invaluable in advancing the prospects and leads identified in this area and the maturing of these assets for farm-out in the future. The acquisition also compliments the 1,100km2 3D seismic data acquired in 2010/2011 over the  WA-435-P and WA-437-P permits.

Increasing industry interest in the region

The recent award of new exploration permits to operator Woodside Petroleum Limited (“Woodside”) is an indication of growing interest in the region. Woodside was recently awarded operatorship and 100% interests in WA-465-P and WA-467-P and operatorship and 55% interests in WA-462-P, WA-464-P and WA-466-P. Shell Development (Australia) Pty Ltd holds the balancing 45% interest. It is also expected that this increased level of activity will improve the availability and cost of relevant service equipment, such as seismic vessels and drilling rigs in the future.

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Offshore Energy Today Staff, December 15, 2011; Image: Carnarvon Petroleum Limited