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

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.

News today not fantastic, 3.2m gas show, will have to wait and see if viable.