fat prophets recommendation, page-3

http://www.sharecafe.com.au/prophet.asp?a=HP&atid=20&mu=FP

Carnarvon Petroleum has made spectacular progress with respect to the Phase 2 appraisal drilling program it is conducting on its Thai oilfields. So far all three of its Phase 2 wells have encountered the targeted shallow volcanic oil horizon, with a tremendous flow rate from at least one. With 37 wells planned this year, there should be unprecedented interest in Carnarvon's activities.

"Carnavron has made a strong start to its 2007 appraisal drilling program."

Fat Prophets first recommended buying Carnarvon at 5.4 cents in February 2006 (Fat Mining 13). Our last review of this stock was during April (Fat Mining 71).

Buoyant investor support has seen an acceleration of the upward trend since our last review in April. The current rally high of 24.5 cents is the highest level attained in nine years and represents a tripling of prices since March.
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Following such rapid gains, the upward trend of any stock is at risk of pausing for consolidation. However, as shown on the daily chart, Carnarvon has only recently broken above resistance at 16 cents and upward momentum remains firm. Furthermore, recent expansion of average daily trading volumes indicates growing investor support for the stock, thus further limiting downside risks.

Carnarvon Petroleum has been one of our best oil sector performers and it is timely that we provide Members with an update on the company's exploration activities.