Web Site : http://www.carpathian.com.au

RNS out today - encouraging but hardly earth-shattering, IMO. The Monov prospect looks promising though.

Carpathian Resources


Carpathian Resources Limited

28 July 2006

Quarterly Activities Report - June 2006

Highlights for the Quarter

-- Ja3a continues production in line with forecasts

-- KS7 production resumed

-- Early results see KS4 producing

-- Seismic interpretations completed

-- Morava seismic shows promise

PRODUCTION ACTIVITIES

Janovice Gas Field (60% interest)

Production from the field was maintained throughout the quarter without incident
at a rate of more than 34,000 cubic meters per day, which is sufficient to
fulfil the 2006 sales contract.

Since an independent consultant determined from pressure test data that the
field contains of 3.8 to 4.0 billion cubic feet in place (announced on 3 March
2006) the focus has been on defining locations for drilling development wells in
2007. The studies are running parallel with the interpretation of the seismic
acquired in the Raskovice-Moravka permit immediately east of the Janovice
production licence (see below).

KrnOil Field (75% reducing to 50% after payout)

Production from the KS7 well recommenced on April 25th after the winter shutdown
and continued to the end of the quarter apart from a minor interruption in late
May to replace a piece of downhole equipment. During June KS7 produced at an
average rate of 4.4 m3 per day of oil (28 barrels).

Unfortunately, but not unexpectedly, economic production from the KS8 well could
not be re-established. The well was shut in and the equipment moved, as planned,
to the KS4 well site and is being used in the long-term test of that well.

The KS4 production test commenced in June using temporary facilities and will
run throughout the production season. If the test proves to be a success then
permanent facilities will be installed at the site. Production in June averaged
3.8 m3 per day of oil (24 barrels). The test oil will be sold.

EXPLORATION ACTIVITIES

Czech Republic

Rakovice - Morka (60%)

The permit lies immediately east of the Janovice gas field and the principal
exploration target is the Karpat Sandstone as in Ja3a well.

A structural interpretation report incorporating the seismic data acquired in
2005 was received during the period and a second report from the geophysical
contractor, incorporating detailed analysis of the seismic amplitudes was
received at the close. The results of the two reports must be integrated before
decision can be made on how best to further the exploration of the permit and to
define new drilling targets, both on the permit and on the Janovice production
license as soon as possible.

A review of the interpretations suggest that further geological input is
required to be included in the geophysical interpretation and this will be
pursued in the coming months. Although the seismic is of good quality the
'picking' of controlling faults has been difficult. Nevertheless some attractive
features have been recognized and the work is ongoing.

Monov, 90% interest (contributing 100%)

Preparations to drill a well on the permit are moving ahead. A number of bids
have been received from drilling contractors and it is likely that one will be
selected early in the next quarter. The intention is to drill the well in the
early part of 4Q 2006, but this remains subject to confirmation.

The objectives of the Mo-1 Skotnice well will be Tertiary sandstones and sands
within the top of the Carboniferous section at a depth of 400m below the
surface. The target has been defined by the intersections of 28 coal exploration
bore holes, 0.5 to 1 kilometre apart; it 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 at rates of up to 5 million cubic
feet per day.

The surface location is close to a coal exploration hole from which an open flow
rate flow of 80,000m3 /day (approximately 2.8 million cubic feet per day) was
recorded. Economic analysis presented by the operator indicates that sustainable
rates of as little as 10% of this figure could be economically attractive, given
the strong gas price and the proximity of the gas transmission network.

Morava, 90% interest (contributing 100%)

The Morava project is located near Hodonin in the northern part of the Vienna
Basin, a prolific oil and gas producer. Hodonin is the regional centre for oil
and gas production. There is potential for oil and gas in the traps.

A geophysical interpretation report was received at the close of the period.
Subject to a final review of the prospects and a risk assessment one or more
targets will be selected for drilling perhaps as early as the last quarter of
2006. However, if it is decided to proceed with further specialised geophysical
investigation of the current data set it is more likely any drilling will be in
2007 because of the time required to plan and build a drilling location.

The Morava data shows some particularly promising features, with evidence of
'bright spots' being present. As such indicators can be caused by a number of
factors (including non-hydrocarbon sources), further work is required to fully
detail these features.

Ronov, 90% interest (contributing 100%)

The permits cover an area of prospective sediments in variety of potential traps
on a faulted margin. The most exciting are a series of features on the basin
slope.

A seismic interpretation report was received late in the first quarter 2006 that
will now be compared in detail with a second report received at the end of the
reporting period from the geophysical contractor. Once this has been done the
next steps in the selection of a drilling location in 2007 can be taken.

Meanwhile, progress has been made with the authorities and the differences
between the local and regional planning requirements, highlighted by the
feasibility study are being resolved. This should reduce the time taken to
achieve permission to drill from the authorities.

Slovak Republic (100%)

A review of the exploration and production potential of the area was completed
in the quarter. Although oil and gas have been encountered in two wells within
the permit the structures are highly complex and it was concluded that the
accumulations are small and that any undiscovered deposits are likely to be
uneconomic. As a result is was decided to relinquish the permit before the
renewal date in June thus avoiding further expenditure.

Another sell off... The market didn't like the report???

This is from oilbarrel.com




24.10.2006
Aussie Junior Carpathian Resources Builds Up A Steady Stream Of Gross Cash Flow From Its Czech Republic Assets
Carpathian Resources is an Australian company listed on Londons AIM. It is, as we like to keep saying, not the kind of proposition that BP would be falling over itself to acquire. But in the relativities of these things it is doing fine, with its ratios right.

The company has a range of production, development and exploration assets in the Czech Republic. Oil and gas have been produced in the region for over a century, with exploration activity peaking in the 1920s and 1930s when literally hundreds of new discoveries were brought into production. Following the decline in production and exploration under Soviet rule, the area is now experiencing an upsurge as commercial concerns move into formerly state held acreage.

Operations are often small scale but since hydrocarbons have already been discovered on established acreage the costs of re-entry can be low. Carpathian in its three months to September 30 Activities Report says that its main producing well, the Ja3a well on the Janovice field (60 per cent), has been performing to expectations. This well achieved peak production earlier this year at 1.35 million cubic feet per day and in the quarter under review produced at an average throughout the quarter at 34,000 cubic metres a day (1.2 million cubic feet). This means that as it heads into the final quarter of 2006 and the second quarter of its own financial year it is producing over four times what it did this time in 2005 when the field was newly reopened. It seems that prices have also moved upwards. The company was getting US$6 per 1,000 cubic feet, but this has edged up apparently to US$7.30 per 1,000 cubic feet.

It has not all been plain sailing. There have been some disappointments. Earlier in the year the Ja 11 well, drilled some 1.5 km to the northwest of the Ja3a, to probe a possible 6.5 billion cubic feet satellite prospect, failed to find hydrocarbons.

Against this there is oil to enter into the equation. After the winter shut down was over the wells from the Krasna field were chipping in some 60 barrels a day. The KS4 well held up, producing some 28 barrels a day. But production from the KS7 well suffered an interruption due to the build up of wax in the well bore and on the downhole equipment. The equipment required to remedy the situation was not on hand and production for the quarter fell to 118 cubic metres of oil (743 barrels). This made a modest total of around 30 barrels a day from both wells. But, at current prices, it all helps.

The point is that in the activities update Carpathian was able to report gross cash flow of A$812,000 (336,000) for the three months. Seen in the context that the companys market capitalisation is just 2.7 million, this is good going. The company reported a cash pile of A$2 million; again, modest in overall terms, but good relatively speaking. It should be remembered that this is essentially from one gas well. The company is defining a number of development wells on Janovice for 2007 and is carefully looking at new ways to improve the performance and economy of the Krasna field.

The company also holds a number of exploration permits, where there could be substantial upside. These include the Raskovice-Moravka Permit (60 per cent). This lies immediately to the east of the Janovice gas field and the principal exploration target is the Karpat Sandstone as in the Ja3a well. Integration of the geophysical and geological interpretations of the permit is continuing. In the next quarter it is anticipated that agreement will be reached with the operator on how best to further explore the permit, delineate the extension of the Janovice field and define drilling targets on both.

The Mosnov permit (90 per cent interest, contributing 100 per cent) lies between the depleted Kremlin gas field to the north and the Priobor-Klokocov field to the south, which is reported to have produced 23 billion cubic feet of gas at rates of up to 5 million cubic feet per day. The objectives of a possible first well Mo-1 Skotnice are Tertiary sandstones and sands within the top of the carboniferous section at a depth of 400 metres below the surface. The objectives have been defined by the intersections of 28 coal exploration bore holes that grid the area, 0.5 to 1 kilometre apart. The selected surface location is closer to a coal exploration hole from which an open flow rate of 80,000m3 a day (2.8 million cubic feet) was recorded. Economic analysis presented by the operator indicates that sustainable rates of as little as 10 per cent of this figure could be economically attractive, given the strong gas price and the proximity of the gas transmission network.

The Morava Permit (90 per cent) lies in the northern part of the prolific Vienna Basin. This an area surrounded by numerous oil and gas finds, including a 140 bcf discovery made by Austrian group OMV. Carpathian is hoping to select two drilling locations before the end of 2006. There could be a reserve potential of 7 million barrels of oil and 50 bcf of gas.

Chairmans report from AGM and up 21.5% in OZ today so look for some blue this morning! Think a typo with the date as should read 8th Nov.

Annual General Meeting
9th November 2006
The last financial year has seen the delivery of several significant outcomes for
Carpathian and its shareholders. These are summarised as follows:
1. The start of production from the Janovice Gas Field in October 2005.
2. An upgrade of the reserve figure in the Janovice Field to 3.8 bcf (gas initially
place) following further testing in January 2006.
.
3. Sustained production rates (currently around 38,000 cubic metres per day)
meaning that the forecast profit of AUD 1.9 million net of operating costs field
in calendar year 2006 is likely to be achieved.
4. The start of a long term production test on the Krasna KS4 well which will
come to an end shortly.
5. Completion of the seismic programme in early 2006.
The interpretation of the seismic data has taken longer than anticipated, in part due to
the shortage of experienced personal at critical times, a problem that has affected the
industry over the last few years and continues to do so.
The technical governance we are demanding of our contractors and consultants has
also resulted in delays, but while these are frustrating unnecessary haste would not
benefit Carpathian and its shareholders.
In saying this I am pleased today to announce that the operator has informed
Carpathian that the Mosnov Skolice-1 well will be spudded on or around November
22. The well will test a section that is similar to the section that produces in the
Janovice Field and which the operator has estimated could contain as much as 3.5 bcf.
We believe we are in the final stages of the technical review and anticipate, subject to
independent review, that an extended drilling program will be announced in the not
too distant future.
Thank you for your attention today,
Grant Priest
Chairman

Drilling Started in New Well 28th Nov 2006

Carpathian Resources Limited

Drilling started in new well

Carpathian Resources Limited ("Carpathian"), the oil and gas producer and
explorer focusing in Central Europe, is pleased to announce that the Mo-1
Skotnice ("Skotnice") was spudded on November 28th 2006 in the Mo*nov
exploration permit.

Drilling of the Skotnice well will be 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.

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 an 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.

Philip Linsley, a Director of Carpathian Resources, commented "we are delighted
that after some delay drilling has begun in such a prospective area"

Editors note 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

Shallow well so should not be too long to drill this Mo-1 Skotnice well.

Hi P.P. looked at this one several months ago, to be honest forgot all about it until I saw the drilling update this morning. Noticed its a shallow one and thought it wouldn't take too long to reach a possible result. Couldn't help myself so dived in for a small purchase just in case. Could you bring us up to speed on time scales and probable prospects if known, ta.

Oilyrag, as far as I can remember Mosnov was their next larger target, and with a shallow well like this a couple of weeks tops for drilling. I too have forgotten all about CPNR, and am going to have to re read.

Am I right in thinking that 135,000,000 shares approx market cap of 3.7 million, making a profit of 800,000 would mean a P/E ratio of about 5. Shame about the size of the spread, prehaps thats relative to its currently low market price.

oilyrag: they are also listed in OZ but not sure of market cap there.

A fair guess would be to the same or similar value to here. It would be unfair in the future to be earning a higher %age depending on where you lived. A bit like the national health service, what? Ha Ha.

Why do market makers persist on dropping prices when there is no news and only purchases made. They diliberatly install panic into some holders to create a none existent need to buy and sell. What happened to the old fashioned principles of a companies results and news affecting the shares prices. These days most of the rises and falls are created by the market makers, so if we get into tune with them it dosn't really matter what companies you hold, eventually it would be your turn to go up.

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 Monov 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. Carpathians 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

Price up in OZ overnight, so should be a blue day here today.

Going in the right direction. Nice %ages in Oz and here, I feel the news may be positive when it comes. All we need now is a closing of the spread to encourage trading.

Well, now expecting news on both CPNR and AST next week, could be exciting.

PP, dont forget TMC as well, because the first shipment is due out on Monday.

Yep.

Hi PP. Is this slight drop, just like in OZ overnight, due to profit taking which I think not due to the spread and lack of sales. Or is it just a market correction before the next bout of news is released. What would you consider the full market potential of CPNR to be.

Plenty of sales around today, price must be weak. I may try a limit order later.