The company today said the expanded program will include a combination of development, appraisal and exploration wells to “extensively” develop the oil potential of its two Thai exploration and production licences and increase oil production.

Carnarvon said under the program, four wells will be drilled per month.

Phase 2 is expected to begin this month, subject to final necessary approvals, with two rigs contracted plus a workover rig.

The Perth-based company said planning is also underway to record a 10 square kilometre 3D seismic survey next month, to enable “optimum placement” of those planned wells outside existing 3D seismic coverage.

Carnarvon said under its POE-9 appraisal/development program, it will appraise five wells and if successful, develop the four volcanic reservoir zones identified in POE-9 of which only one has been flow tested.

The first appraisal well, L44-G, is anticipated to begin drilling next month and will involve a step-out 7.2km north of the POE-9 discovery well.

“This is a significant step-out and will appraise the most northern extension of the 13.3sq.km POE-9 structural closure,” the company said.

The next well, L44-H, will be 1.7km north of POE-9. Both L44-G and L44-H will be on high culminations on the greater Na Sanun East structural closure.

“Carnarvon and its JV partner and operator, TSX listed Pan-Orient Corporation, are delighted with the results of the Phase 1 exploration program,” Carnarvon managing director Ted Jacobson said.

“Results from the eight-well drill program, where seven wells are now producing or soon to be producing, confirm the prospectivity and productivity of the Wichian Buri oil field and highlight upside from additional areas such as POE-9.”

He said results from the interpretation of new 3D seismic and previous wells drilled in the permits further confirmed this.

“Following the success of Phase 1, new opportunities have been identified, and we are delighted with the quality of the selected drill targets and the expanded Phase 2 drilling program that has been agreed by the JV,” Jacobson said.

He also said Carnarvon is considering alternatives in respect of funding for the initial stages of the expanded Phase 2 program and cash flow from producing fields are expected to fully fund the latter stages of the drilling program.

Operator Pan Orient holds a 60% stake in the permit, while Carnarvon owns 40%.