Carnarvon Petroleum Limited is pleased to provide shareholders with an update on operations in the L33/43, L44/43 and SW1A concessions onshore Thailand (Carnarvon has a 40% equity interest).

Technology continued success

The joint venture is continuing the trials of the Inflow Control Devices (ICD) as outlined in the previous operations update of 25 November 2011.

To date ICD's have been installed in a total of four wells, with each well producing in excess of preICD rates.

The BR-1RDST1 pilot well results continue to encourage with current production steady and performing at around 100% above previous rates. Cumulative production from this well has exceeded 7,500 bbls since the initial ICD was installed in November 2011. Notwithstanding these positive results, the in-field operations team continues to experiment with different downhole configurations and pump sizes in order to achieve optimal production as part of the pilot program.

The L44V2-ST2 well ICD recompletion was the second in the trial program and is currently producing oil at 88 BOPD gross (35 BOPD net to Carnarvon) from the Bo Rang 'A2' volcanic reservoir. This is also a 100% increase in oil production from pre-ICD rates.

A third ICD was also installed in the recently drilled NSE-F5 well (see Drilling Results below) and oil rates have increased materially since the recompletion.

A fourth ICD has been installed in the L44W4-ST1 well and after only a few days testing has resulted in an increase in oil rates.

The joint venture continues to be encouraged by the ICD results and is actively reviewing options to optimize their downhole configuration. While additional active wells have been recognized as potential candidates for the implementation of the ICD technology, in the near term the joint venture intends to concentrate trials of the ICD in newly drilled horizontal volcanic appraisal wells.

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