Rig: Ocean Monarch

Phoenix South-2 Well Update

Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) is pleased to inform shareholders that operations at the Phoenix South-2 well have been safely completed and the rig has now left the drilling location. The well drilled an estimated 39 metre hydrocarbon-bearing zone between approximately 5,176 and 5,215 metres with significant gas influx and elevated reservoir pore pressures. The well was unable to assess as much as 185 metres of additional potential hydrocarbon bearing Caley reservoir beneath 5,215 metres due to the higher than anticipated pressures being encountered. The higher formation pressures encountered typically support both larger volumes and higher gas and condensate flows rates over a given reservoir. An update on volume estimates will be provided once Carnarvon has had an opportunity to assess all of the information obtained from the well. These results are expected to have a positive impact on volumes assessments in the Phoenix South Caley Sandstone. The joint venture will also assess the results of this well for the purpose of considering the future operations in this area, including quantifying the resources identified in the Phoenix South Barret and Caley Sandstone formations. Unfortunately, the subsurface conditions in this well did not allow for the well to be suspended in a way that would allow for re-entry at a later date.

Historic Bedout Sub-basin flow test

Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) advises that the Roc-2 well test successfully flowed gas and condensate to surface over the course of a sustained test program. Quadrant Energy, as operator of the permit, undertook controlled flow test operations in the Roc-2 well. The well flow tested at rates up to 51.2 million scf per day of gas and 2,943 barrels of condensate per day, that is approximately 11,500 barrels of oil equivalent* per day. These rates were achieved through an approximate 1 1/2” choke and were equipment constrained flow rates; meaning the well flowed at the maximum rate possible in the equipment being used. Testing operations were undertaken at controlled flow rates to enable the monitoring of the field including reservoir pressures, gas and condensate ratios and the presence of other substances such as CO2, H2S, water and sand. Encouragingly, there were insignificant levels of these other substances in the gas and condensate recorded during the flow test.

Global Maritime secures mooring work in Australia

Global Maritime Deep Sea Mooring has been awarded a contract for the provision of mooring and rig positioning services to the Australian oil and gas company Woodside. Under the contract with Woodside, Global Maritime Deep Sea Mooring will perform mooring and rig positioning services for semi-submersible drilling unit Ocean Monarch, which is drilling at the Julimar field on the Northwest Shelf, Australia. Mobilisation and offshore operations commenced in May 2015. “Winning this contract confirms the importance of flexibility and local presence, with availability of equipment and personnel. We are very pleased that our unique advanced technologies and equipment specifications are highly appreciated by key industry players”, says Managing Director Barry Silver in Global Maritime Deep Sea Mooring Australia. “This is our first contract with Woodside, and we look forward to developing a close cooperation going forward”.

Apache negotiates rate reduction for final two months of future contract

Apache Corporation (“Apache”) has negotiated a reduced dayrate with Diamond Offshore Drilling Inc (“Diamond”) on its future contract for the Ocean Monarch semisubmersible drilling rig. The unit which is expected to begin its 18 month contract in Australia for Apache in June 2015 will see its dayrate reduce from USD410,000 to USD350,000 for the final two months of the 18 month contract.

Keppel undertakes US$102 million upgrading of fourth semi for Diamond

Keppel FELS Ltd (Keppel FELS) has secured a contract from Diamond Offshore Drilling, Inc. (Diamond Offshore) for the major upgrading of semisubmersible rig (semi) for US$102 million. Ocean Monarch will arrive at Keppel FELS in mid 2006 for the upgrading and is expected to be operationally ready in the fourth quarter of 2008. When completed, Ocean Monarch can operate in up to 10,000 feet of water in a moored configuration. It will be among the most modernised and competent of Diamond’s fleet of upgraded Victory-class semis. This semi is the fourth in a series of fifth generation Victory-class upgrades that Keppel FELS has undertaken for Diamond Offshore. The first three semis are Ocean Baroness, Ocean Rover and Ocean Endeavor. Ocean Endeavor is currently undergoing upgrading works at Keppel FELS and is scheduled for completion in fourth quarter 2006. Keppel FELS is currently undertaking the construction of one jackup rig for Diamond Offshore. Its sister company, Keppel AmFELS is also building a jackup rig for the same customer. Both rigs are of the proprietary KFELS B Class jackup design by the R&D arm of Keppel.