Apache continues drilling at Phoenix South-1 well in permit WA-435-P off WA

7/18/2014

Apache continues drilling at Phoenix South-1 well in permit WA-435-P off WA

PERTH -- Carnarvon Petroleum reported that the Phoenix South-1 well in permit WA-435-P on the North West Shelf offshore Western Australia has successfully set the 9.625 inch casing in the side-track well and is drilling ahead.

As on July 18 the well was drilling ahead at approximately 12,303 ft (3,750 m) measured depth (MD) in the final hole section.

The primary targets for the Phoenix South-1 well are the interbedded sandstones, siltstones and claystones of the Middle Triassic Lower Karaudren Formation and Early to Middle Triassic Locker Shale. These sands are expected to be intersected while drilling this final hole section.

The well is expected to take approximately three weeks to complete drilling.

Following the completion of drilling, extensive wireline logging and both pressure and fluid sampling are planned. These operations will continue for a further week.

Carnarvon will provide further updates as the well progresses.

The equity interest holders in the Phoenix South-1 well (upon satisfaction of the farm in agreement terms) are: Carnarvon Petroleum - 20%, Apache Energy (Operator) - 40%, JX Nippon - 20% and Finder Exploration - 20%.

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