Production of oil at Krásná (Carpathian 75%) started from well KS8 on 23rd April completing Carpathian's change from explorer to a producer.

Recoverable reserves at Krásná amount to just over 200,000 barrels with production increasing to 120bopd by the time the first shipment of crude oil was sent to the refinery. Average production should increase considerably when a second well (Ks7) is brought on stream in the coming quarter.

The company is also set to drill the first gas production well at the Janovice gas field (Carpathian 60%) with construction work on the well site underway. The start of drilling is dependent on rig availability but it is expected the well will be completed during the December quarter at the latest.

As with the Krásná oil field, the Janovice gas field was discovered and evaluated under the former Czechoslovakian communist regime. Recoverable reserves were previously established within the area of influence of the two discovery wells but no production occurred.

The Miocene Karpat sandstone reservoir is divided into two sections by a fault. The deeper section (1,030m) contains recoverable (proved and probable) gas reserves of 1,058mmcf while the shallower section (886m) contains recoverable reserves of 590mmcf.

After years of dispute with the Czech Oil Company (COC), Carpathian Resources can finally see the light at the end of the tunnel surrounding the Breclav joint venture.

Carpathian entered into the Breclav joint venture as a 17.64% contributing partner in October 2001 with the first exploration well, Postorna 1, discovering a new oil pool.

Immediately on receiving the results of Postorna 1, the directors of COC initiated a series of actions to wrest control of the Breclav licence from the joint venture, which were successfully blocked by Canadian-based operator Geocan.

Negotiations between the parties were still underway by 23rdJune but sufficiently advanced for the Ministry of Environment to provide more time for completion.