announcement theyre close
Ground Floor, 83 Havelock Street West Perth WA 6005 | PO BOX 1617 West Perth WA 6872 Telephone (61 8) 9214 2579 | Facsimile (61 8) 9214 2511 | Email [email protected] Website www.carpathian.com.au ABN 30 080 273 703 5 December 2006 ASX/AIM RELEASE Carpathian Resources Limited ("Carpathian" or the "Company") Drilling update Mo- 1 Skotnice at 319.17m Carpathian Resources Limited ("Carpathian"), the oil and gas producer and explorer focusing in Central Europe, is pleased to announce that at 0600 hrs local time on December 4th drilling at Mo-1 Skotnice (“Skotnice”) in the Mošnov Exploration Permit (Czech Republic) was down to 319.17 m. Since the well was spudded on 28 November 2006, announced 29th November 2006, a surface conductor was set at 17.08m and an intermediate casing sting at 107.14m. There will be no further drilling updates in respect of Mo-1 Skotnice released to AIM until the completion of the drilling process. For ongoing drilling progress please refer to the Company's website www.carpathian.com.au or www.asx.com.au The well location lies between the depleted Kremlin gas field to the north and the Priobor-Klokocov Field to the south which it is reported produced 23 billion cubic feet of gas between 1945 and 1984 at rates of up to 5 million cubic feet per day. The Skotnice prospect has been defined by a detailed study of some 28 coal exploration holes, 0.5 – 1 kilometre apart and the targets are Tertiary sandstones in a potential trap at a depth of about 400 metres and sandstones within the Carboniferous section not far beneath. The location is very close to and updip of a coal exploration hole from which a gas flow of 80,000 cubic metres (approximately 2.8 million cubic feet per day) was recorded in 1961, some two years after it had been drilled. While this open flow rate might not be sustainable, an economic analysis indicates that given the strong gas price and the proximity of the gas transmission network, sustainable flow rates of as little as 10% of this figure could be economically attractive. Drilling of the Skotnice well is being funded from current earnings. Carpathian’s operating revenue in 2006 from gas net of direct production costs is forecast to be AUD 1.9 million or £760,000. Carpathian is listed on the ASX market in Australia and on AIM in London. For further information contact: Philip Linsley Doug Jendry Director Director Carpathian Resources Limited Carpathian Resources Limited +44 1372 844 094 +61 8 9214 2579 Grant Thornton Corporate Finance Ben Knowles Colin Aaronson Parkgreen Communications +44 20 7383 5100 +44 20 7493 3716
CPN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
