"Carpathian looks like establishing a solid cash flow of at least $1 million per annum from recent gas discoveries and development wells in the Czech Republic," Carmichael said. "With a market capitalisation of just $4.8 million, Carpathian is well placed to use these funds for further exploration in the Vienna Basin."

For just a 'buy', Carmichael recommends two stocks, namely, Australian Worldwide Exploration and Amity Oil. AWE has farmed down to a free carried interest of 12.5% in the Huinga project in New Zealand, saving the company at least $1.45 million in drilling costs, according to Carmichael.

"Success at the Makino-1 well, which is currently drilling in PEP38716 adjacent to AWE's PEP38718 (Huinga prospect) has the potential to prove up about 11 mmboe in PEP38718 as the target zone overlaps into AWE's ground," Carmichael said. "Success at Makino would increase interest in Huinga, which will be drilled after Makino in February."

The 120 mmbbl target at Cliff Head now looks certain to spud by late December, with the target due to be reached in the first week of January 2002. "A huge, 30mmcuft per day gas flow rate recorded while flow testing at the 33% owned Beharra Springs gas discovery gives encouragement for strong gas sales in early 2002."

In our last edition, we mentioned Amity Oil, which is drilling in Turkey. After positive interpretation of down-hole logs, the company looks set to case its first Gocerler development well as a producer. Preparations are underway for a wildcat well at Beyazkov with a third well in Gocerler following soon after.