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Carnarvon keen on ‘company-maker’

Carnarvon Petroleum’s Thai oil field interest has moved up a notch, following formal approval of a second development phase.

The company, which has been trading below five cents, believes activity within the next two months will transform Carnarvon from a wildcat explorer and small producer, to a significant oil producer.

Carnarvon has a 40 per cent interest in the field, the Wichian Buri, which could increase

the company’s cashflow by US$62,500 per month from November.

The field produced three successful wells in the first development phase over a seven month period through to February this year and produces 200 barrels per day.

The new four-week program, to involve three infill production wells and the stimulation of two existing production wells, will commence this month.

Forecasts for potential daily production following this activity are between 700 and 1,000 barrels.

Debt-free, Carnarvon will contribute US$0.8 million to the program, some from cash reserves, but most from a sales proceeds deal secured in March with finance group Gemini Oil & Gas.

Carnarvon company secretary Leonard Troncone said the joint venture, with Canadian operator Pacific Tiger Energy Inc, hoped to self-fund a third phase, to in-crease production further, from early 2003.

All production will continue to be taken by a Thai Government refinery.

Carnarvon is conducting due diligence on some "other interesting projects", with a view to adding to its Asian interests by the end of the year.

The company has been successful in recent fundraising to support its plans.

A private placement of 30 million shares through two stockbroking firms was over-subscribed, raising $1.26 million, and a share placement plan raised $700,000 from 16.6 million shares.

Meanwhile this week another WA-based petroleum company Arc Energy announced it would commence production from the Hovea oil field in the onshore Perth Basin, following success with three wells since last October.

The joint venture with Origin Energy hopes to be producing a daily 5,000 barrels by early next year.

The first and third Hovea wells revealed oil, while the second indicated a new gas pool.

The Hovea field is less than 10 kilometres west of the Cliff Head trend, scene of another oil find last summer.

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