CARNARVON ENERGY LIMITED — Capital/Financing Update 2012

Dec 5, 2012

Thailand Drilling Update – NSE-B2ST1 6 December 2012

Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) provides shareholders the following update on the drilling operations at the NSE-B2ST1 well as at 06:00hrs, 6[th] December 2012.

The NSE-B2ST1 well commenced sidetrack drilling operations on 22[nd] November 2012. Since the update report on 29[th] November 2012, the well has successfully sidetracked from the original borehole, as planned, and has directionally drilled ahead to 893 mMD where drilling fluid losses have occurred.

Drilling fluid losses are generally positive indicators of open fracture networks and a necessary element to flow oil from these igneous reservoirs.

Current operations are working to control these losses with Lost Circulation Material (LCM) and continue drilling to the programmed total depth of 1,095 mMD.

If successful, the well will be placed on production within 5-7 days following the completion of the well and production from this well is planned to be restricted to preserve flow rates and maximise recovery rates.

Carnarvon expects to release the next update report on the 13[th] December 2012, subject to any material events occurring prior to this date.

Further information on Carnarvon Petroleum Limited is available at: www.carnarvon.com.au

For all enquiries please contact:

Adrian Cook Managing Director - Carnarvon Petroleum 08 9321 2665 Email: admin@cvn.com.au

Yours faithfully

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Adrian Cook Managing Director Carnarvon Petroleum

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NSE-B2ST1

		NSE-B2ST1
P
	ermit	L44/43
L	ocation	Easting:734,727.49 m E
		Northing: 1,722,945.70 m N
CVN Interest		40%
Target Formation		NSE Main Volcanic Reservoirs
Commencement Date		22ndNovember 2012
Days on Location		15
Planned Total DepthCurrent DepthCurrent StatusForward Operations		1095.22 mMD (900.00 mTVD)893.14 mMD (730.20 mTVD)Manage drilling fluid lossesManage losses and continue drilling tototal depth.

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