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Carnarvon Petroleum updates on Phoenix South-1 well

PERTH, Australia -- Carnarvon Petroleum Limited (Carnarvon) reported that the Phoenix South-1 well has drilled to a depth of 4,540 m Measured Depth (MD). Drilling 40 m below the 4,500 m MD target was undertaken to enable logging tools to reach 4,500 m. The Operator is currently running wireline formation evaluation tools. These operations are expected to continue for a further 5 to 7 days. Once these operations are complete the Joint Venture will make a decision whether to drill deeper.

Throughout the interval from approximately 4,170 m MD to 4,540 m MD, a number of sandstone intervals were encountered. Elevated gas readings and indications of associated liquid hydrocarbons were observed coincident with these sandstone intervals.

The results from the logging based formation evaluation are required before we are able to be more definitive on the well results and further updates will be provided as soon as the relevant information is to hand.

The equity interest holders are: Apache Energy (Operator) - 40%, Carnarvon Petroleum - 20%, Carnarvon Petroleum - 20% and Finder Exploration - 20%.



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