This follows the conclusion in November of a long-running legal battle between Carnarvon Petroleum subsidiary Strategic Exploration (Asia) Limited (SEAL) and its partners in the project at the time – Pacific Tiger and Tiger Petroleum.

This morning, Carnarvon told the ASX that the excellent reprocessing quality of the seismic data was a major step forward for the joint venture.

“The new operator Pan Orient Energy has demonstrated a sound technical understanding of the Wichian Buri geology and importantly, has experience from other similar oil developments which it plans to put into practice at Wichian Buri,” chief executive Ted Jacobson said following a recent field trip to the oil field.

“In such a complex oil field as Wichian Buri, good seismic data is essential and the excellent quality of the reprocessing is a good sign that the new seismic data about to be recorded will also be of excellent quality.”

Based on the seismic results, two wells will be drilled in the first half of this year, starting late next month. Carnarvon says a rig contract for this work is expected to be signed soon, with casing/tubing for these two wells due to arrive next week.

In addition, a new 3D seismic survey has started over the Wichian Buri trend, comprising 226 square kilometres. Recording is due to start soon, with the entire survey expected for completion mid-year, Carnavon said.

“The significant improvement in the reprocessed seismic bodes well for this new 3D seismic also being of excellent quality,” Jacobson said.

“From these data, well locations will be chosen for the well program in the second half of the year.”

Tenders have also been let for a truck-mounted rig, which is expected to operate as a second rig in the second half of 2006, while casing/tubing for a further 10 wells is on order.

Meanwhile, an independent reserve analysis and report for the Wichian Buri Oil Field is currently being prepared by international petroleum reservoir consultant Gaffney Cline’s Singapore office. This is due to be completed towards the end of April, Carnarvon said.

Wichian Buri Oil Field covers production licences and exploration permits L44/43 and L33/43 onshore Thailand. The joint venture comprises Pan Orient (which holds a 60% stake) and Carnarvon (40%).

In May last year, Carnarvon gave Tiger Petroleum notice of its intention to withdraw from the project and initiated court action for under-funding its share of expenditures.

The claim sought specific performance of the joint operating agreement. It included an order that Pacific Tiger transfer all its interests in the joint venture to SEAL, a declaration that the JV properties include Exploration Block L33/43, damages of $US2.2 million for negligence, breach of contract and breach of fiduciary duties, and ancillary relief.

But Carnavon announced in November last year that settlement terms were resolved amicably on an equitable commercial basis that would provide a sound platform for future operation of the JV.