"The well has since flowed oil to the surface facilities under natural flow conditions without the use of artificial lifting methods such as a beam pump or nitrogen lift," Carnarvon said. "The well has flowed over two days during daylight hours and was shut-in overnight."

Carnarvon said flowing the wells naturally while the reservoir is still largely undisturbed in the vicinity allows the best opportunity to collect essential reservoir, well and fluid data, which will

form the basis for calculating key properties and parameters such as permeability and skin.

"This information will help form the basis for optimal reservoir management and further field

development such as the Phase Three development, which is being planned for the first half of 2003," the company said.

Carnarvon said testing of WB-N6 has also started with WB-N5 to begin this week. "After testing all three Phase II wells under natural flow conditions during which time essential reservoir end well parameters can be established, it is planned to production test the wells using jet pumps," Carnarvon said.

Carnarvon also told the market after production testing the F Sandstone reservoir in each of the three new wells, the joint venture will plan for the perforation of the other discovered oil bearing reservoirs. The wells will then be put on long-term commercial production.

The SW1A Joint Venture consists of Carnarvon Petroleum NL (40%) and Pacific Tiger Energy Inc (60% - operator).