Onshore Thailand 2,250 bopd Carnarvon 7/25/2008


11/16/09 Pope Beneditc XVI Appointed Fr. Joseph Luechai Thatwisai of the clergy of Udon Thani, Thailand, professor at the Lux Mundi major national seminary of Sampran, and secretary of the episcopal conference's biblical commission, as bishop of Udon Thani (area 50,046, population 5,346,154, Catholics 17,000, priests 33, religious 100). The bishop-elect was born in Phonsung, Thailand in 1962 and ordained a priest in 1990. He succeeds Bishop George Yod Phimphisan C.Ss.R., whose resignation from the pastoral care of the same diocese the Holy Father accepted, upon having reached the age limit.
Onshore Thailand 2,250 bopd Carnarvon Petroleum NL 7/25/2008
Pan Orient All Smiles at NSE-A3 Well

Carnarvon reported that testing is underway on the recently drilled NSE-A3 horizontal appraisal well, operated by Pan Orient and located onshore Thailand.  NSE-A3 is currently free flowing oil from the main volcanic reservoir within the Na Sanun East (NSE) central fault compartment at a stabilized rate of approximately 2,250 bopd with a low 0.1% water cut and choke settings/surface flowing pressures of 42/64" at120 psi on the tubing and 24/64" at 130 psi on the casing.

The NSE-A3 horizontal appraisal well was drilled to a total measured depth of 897 meters, penetrating the top of the main volcanic target at a depth of 755 meters TVD at a location approximately 420 meters due north of the NSE-A1 surface location. A 60 meter horizontal section was drilled within the upper 6 meters of the approximately 180 meter thick main volcanic reservoir.

Last week, on the July 18, Carnarvon announced a 1,245 bopd discovery of a new upper volcanic/volcanic clastic reservoir in its NSE-A1 well. This newly discovered productive zone at NSE-A1 was also encountered in NSE-A3, and drilled though, exhibiting high mud gas readings and good oil shows. This supports the interpretation that this new shallower reservoir is extensive across the Na Sanun East field.

NSE-A4 New Horizontal Appraisal Well (CVN 40%)

The NSE-A4 horizontal appraisal well is currently drilling ahead at a depth of approximately 120 meters towards the top of the main volcanic reservoir objective at a subsurface location approximately 350 meters northeast of the NSE-A drilling pad, within the NSE central fault compartment.

Development Plan Progress

The high flow rates at NSE-A3, combined with the new zone discovery at NSE-A1 announced one week ago, provide an exceptional start to the main NSE central fault compartment development that is now underway. The multi-well drill pad containing NSEA1, NSE-A3, and NSE-A4 was the first of its kind undertaken by the joint venture under the development plan. There is currently one additional multi-well drill pad where construction has been completed, three additional multi-well drill pads that are under construction plus another three multi-well drill pads where the land has been purchased and construction is about to commence.

WICHIAN BURI OIL FIELD APPRAISAL L44-C Vertical Appraisal Well (CVN 40%)

The L44-C vertical appraisal well is currently drilling ahead at a depth of approximately 1,000 meters with objectives within the F and G sandstones and a deeper "WB-1" volcanic at a location 1.15 kilometers north of the POE-6 oil discovery and within the POE-6 fault compartment. Oil shows and elevated mud gas readings have been observed while drilling at a number of stratigraphic levels. The WB-1 "Deep" volcanic reservoir is anticipated to be encountered at a depth of approximately 1,250 meters.

L44-C is part of a multi-well appraisal program that is intended to define the potential of sandstone and volcanic reservoir targets in the up dip portion of the POE-6 and Wichian Buri fault compartments, for future vertical and horizontal infill drilling.

Carnarvon's CEO, Ted Jacobson, commented, "The good flow results from NSE-A1 announced last week and now NSE-A3 are an excellent start to the development of the Na Sanun East Oil Field. The operator of the field,
Pan Orient, has successfully embarked on drilling horizontal production wells from multi well drill pads. These larger pads allow multiple operations from the one site without the need for restricting operations in adjacent wells. The joint venture maintains its target of 15,000 bopd gross oil production by years end.

"In addition to the development of the NSE field, appraisal of the Wichian Buri field is well underway with the drilling of L44-C. Hopefully this will significantly boost production from this field separate from Na Sanun East production."

Thailand   licensing round Jun 30  Japan, Thailand Currency Swap July 7 
NonKhai Freindship Bridge Somboon Potash MinePotash Transport Thai Oil Co. launches huge debt restructuring Thai exports climb 11.4 percent in September  29 Oct 1999AFP
Thai PM departs to sign gas deal with Malaysia  29 Oct 1999AFP Malaysia, Thailand say gas project a model for Spratlys 30 Oct 1999 AFP Thai Skytrain back on track after fare deal  3 Nov 1999 AFP
At the direction of Prime Minister Thaksin Shinawatra, the government was reportedly
considering alternate routes a controversial $477 million gas pipeline to Malaysia. 
The pipeline's route is opposed by a group of environmentalists and local activists. One proposal under discussion would reroute the pipeline onto property owned by the Thai navy.

Thailand to open licensing round
Oil&Gas Journal Online Story (Jun 30, 2000) 

BANGKOK—Thailand has resolved to take advantage of high oil and gas prices by launching a new licensing round for petroleum prospecting rights on 88 tracts covering 450,000 sq km. Earlier this week, the Thai cabinet endorsed the plan of Industry Ministry to call the round, timed to lure international hydrocarbon prospectors at a time of high world oil prices.   Increasing oil prices are perceived by Thai resources officials to make prospecting in the country, which offers moderate discovery potential and production, more interesting.   International industry's interest in the kingdom's exploration and production activities has been limited in the past, especially during the past few years of low oil prices and a stagnant Thai economy caused by the 1997 regional economic meltdown.

According to Industry Minister Suwat Liptapallop, 75 of the blocks on offer are onshore, 9 are in the Gulf of Thailand, and 4 are in Andaman. 

 It is yet to be seen how foreign firms will react to the new Thai licensing round. A standard royalty fee of 15% will be levied on production, and 50% income tax is imposed.   The Gulf of Thailand has so far offered the most potential in terms of natural gas. The kingdom offers less potential for sizable oil prospects.   Thailand's combined domestic petroleum production in the first 4 months of this year rose 16% to 423,000 boe/d, according to the Petroleum Authority of Thailand. 
Thai Oil Co. launches huge debt restructuring November 01, 1999 Magazine Volume: 97 Issue: 44 
                           After some delays, key creditors have finally reached a milestone agreement to accept Thai Oil Co.'s $2.25 billion proposed debt-restructuring plan.  Representatives of more than 120 creditors of Thailand's largest refiner signed a "recommendation letter" in Tokyo accepting the restructuring scheme, believed to be the largest of its kind in the world.  The creditors' accord came after Thai Industry Minister Suwat Liptapanlop went to Japan to personally convince certain major Japanese banks on a number of key policy issues that would support Thai Oil's future operation and viability, according to Thai Oil executives. 

Only a few weeks ago, creditors were reluctant to vote for approval of the comprehensive restructuring and put off voting until the middle of November.  A key to the acceptance by the core group of creditors' is the Thai government's policy to support possible integration of Thai Oil's refining operation and the marketing business of the Petroleum Authority of Thailand (PTT) as part of PTT's privatization plan, which is expected to be instituted starting in the second half of next year.  Thai Oil said the recommendation letter is a crucial factor supporting all other creditors' decision to vote in favor of  the debt-structuring plan.  The letter will be sent, together with details on the restructuring scheme, to all creditors for consideration. 
 Voting will take place on Nov. 12.  Representing the creditors are 11 banks that account for about 35% of Thai Oil's outstanding debt.  They are: Bank of Tokyo-Mitsubishi, Bangkok Bank, Chase Manhattan Bank, DKB Bank, Dresdner Bank, IBJ, Industrial Finance Corp. of Thailand, Sanwa Bank, Sumitomo Bank, Thai Farmers Bank, and Warburg Dillon Read. 

Debt restructuring  The debt-restructuring framework accepted by the creditor group is in line with what the Thai cabinet endorsed on Aug. 24.  The deal will cut Thai Oil's total debt burden of  $2.25 billion to $1.385 billion, a move Thai Oil says will put it back on sound financial footing.  Among the key elements of the restructuring is a commitment by major shareholder PTT to inject $250 million of new equity into Thai Oil. 

PTT will supply crude and feedstock's to Thai Oil's 203,000 b/d Sriracha refinery and  will have the right to purchase finished products amounting to at least 50% of Thai Oil's production capacity. 

The PTT capital will be used toward buying back about $315 million of existing Thai Oil debt. Senior lenders will be invited to bid for this buy-out at a discount under a tender process. Lenders will receive a combined 49.99% of the ordinary Thai Oil shares by way of a debt-for-equity swap. 

Thai Oil's current shareholders are: PTT, 49%; the Chowkwanyun family (the founder of Thai Oil), 25.95%; Royal Dutch/Shell, 15.05%; Caltex Petroleum Corp., 4.75%; Bureau of Crown Property, 2%; and others, 3.25%. 

Under the plan, lenders that are not bought out will commit to the $1.385 billion of restructured debt.  This debt will have a 10-year tenor, extendable at Thai Oil's option for a further 4 years on payment of an extension fee.  Thai Oil suspended interest and principal payment to its creditor in November last year when its financial troubles reached a critical stage.  Its difficulties were caused by the plunge in regional and local refining margins, prompted by increased refining capacity and falling products demand.  The firm's gross   refining margin has fallen from an average of $4/bbl before the Asian economic crisis to merely $2/bbl this year, far below the level needed to cover its interest costs. 

NonKhai Freindship Bridge Somboon Potash MinePotash Transport

Cycle of Despair 
Workers fled crisis-hit Bangkok to find a future in their home villages. Now they're back--empty-handed 

By Shawn W. Crispin in Wang Nok Gaew, Kanchanaburi and Bangkok Issue cover-dated September 23, 1999 

                 Somchai Fleumnoong looks tired and dishevelled as he slurps a bowl of pig-intestine soup and talks about his return to Bangkok. He was among the tens of thousands of Thais who left the city for their rural homes in 1997, seeking opportunities they couldn't find in the capital at the height of the economic crisis. But in six months in his home town of Prachinburi, in central Thailand, Somchai couldn't find a job. 

                 Now he's back in the capital. Somchai lives in a makeshift shack among the city's poorest residents, and does the occasional odd job to help support his wife and three children. "Sometimes we have to borrow to send our children to school," he says. That means going to money-lenders and paying interest rates of almost 20% a month. He's not alone: Somchai reckons that in the last six months, eight out of every 10 of his acquaintances have returned to Bangkok after finding no relief from poverty in their home villages. 

                 As Somchai can attest, Thailand's migration cycle has sharply reversed. Many of those who left Bangkok two years ago have returned, putting pressure on the overcrowded city's social services and raising levels of desperation. Even though the slums along Bangkok's railroad tracks and canals are starting to swell dangerously, Bangkok is increasingly considered the only option for many of Thailand's unemployed, who found their villages couldn't offer them a job. 

                 "The slums are growing," worries Bangkok Governor Bhichit Rattakul. "We fear even more will return after the November harvest." If that happens, it could damage his efforts to reduce unemployment. Bhichit boasts that he has already created 100,000 jobs with funds from the metropolitan-area budget and from the Japanese-backed Miyazawa program, which has funneled 53 billion baht ($1.3 billion) into Thai job-creation schemes. But already he admits that his resources are overburdened and facilities are beginning to break down across the city. Worryingly, the Miyazawa money will run dry in the coming months. 

                 Meanwhile, the national assembly is challenging Bhichit's spending proposals, worried that his social-assistance programs may encourage even greater migration into the city. Indeed, the mood in central government remains against any kind of free lunch: Last year it cajoled Bhichit into closing 30 of 50 subsidized soup kitchens in the city. When the government budget is finalized later this month, the cuts are likely to be deeper still. 

Still, for many Bangkok appears to be the best bet.
                  According to the Brooker Group, a Bangkok-based consulting firm that conducted a social survey for the Asian Development Bank, 40% of rural households now have no savings left. There's little relief from the Miyazawa program. Pairoj Srisomboon, the village head of Wang Nok Gaew in western Thailand, says he was allocated 300,000 baht from the fund to build an irrigation system, but it was "simply not enough." One month after hiring 15 laborers, Pairoj ran out of money to buy the pipes and cement. He has applied for extra funding--but he doubts if it will ever arrive. 

                 One major reason why funds don't filter down to rural communities is that they get tangled up in the competing claims of the education, labor and interior ministries, says Peter Brimble, president of the Brooker Group. Adds Amara Pongsapich, director of Chulalongkorn University's Social Research Institute in Bangkok:  "Programs have been implemented without identifying the right people to help." 

                 Hence, those most in need slip through the cracks. It could get worse. Non-governmental organizations that help the most vulnerable groups of Thai society have seen a sharp decline in private donations. Government budget cuts, too, have hurt. For example, medical assistance from the Ministry of Public Health to the Foundation for Handicapped Children has been cut by a third since the crisis. 

Children suffer disproportionately. 
                  According to the Brooker Group report, the number of street children in Bangkok has risen by 15% since the crisis. Among these children, drug abuse is rampant, since the price of amphetamine tablets has slipped to 3-4 baht a tablet. "Many street children's parents are in jail," says the Rev. Joe Maier, director of the Mercy Centre at Klong Toey. "How can they survive without resorting to crime?" 

                 As more migrants return to Bangkok, the social cost is likely to rise. "The economic indicators say the economy is recovering, but how long will it take to reach the people on the street?" says Bhichit. "This will become a social crisis very soon." 

Thai exports climb 11.4 percent in September  29 Oct 1999AFP
BANGKOK, Oct 29 (AFP) - Thai exports leapt 11.4 percent from a   year ago to 4.98 billion dollars in September, the Bank of Thailand  (BoT) said Friday.     In its monthly release of economic indicators the central bank   said imports for the month were up 31.6 percent to 4.25 billion  dollars.     The BoT said the September current account surplus fell to 788   million dollars from 899 million in August, while the trade surplus  in September fell to 733 million from 746 million.     There was a balance of payments deficit of 193 million dollars   in September after a surplus of 25 million in August.     Manufacturing output in September was up 15.4 percent   year-on-year after a rise of 17.7 percent in August, the central  bank said.     Net private investment was down seven percent year-on-year after   a fall of nine percent a month earlier.     Commercial bank credit in September was down 4.7 percent after a   fall of 6.07 percent in August. Deposits rose 1.8 percent after a  rise of 3.3 percent in August.     Inflation measured by consumer prices in September was down 0.8   percent after a fall of 1.1 percent in August, the central bank  said.     The BoT said foreign exchange reserves stood at 32.4 billion   dollars as of October 22, unchanged from a week earlier.     Forward swap positions were unchanged at minus three billion   dollars. 
Thai PM departs to sign gas deal with Malaysia  29 Oct 1999AFP 
BANGKOK, Oct 30 (AFP) - Thai Prime Minister Chuan Leekpai left   here Saturday for northern Malaysia, where he will sign a deal to  exploit gas in a disputed area off the two countries' eastern  coastlines, officials said.     Chuan will sign the agreement with Prime Minister Mahathir   Mohamad in Malaysia's Kedah state, paving the way for production  expected to generate profits of three billion dollars over 20  years.     Officials said the two leaders would also discuss bilateral,   regional and international issues including East Timor, where  Thailand is serving as deputy leader of the multinational security  force.     The gas agreement will see profits split 50-50 between Malaysia   and Thailand.     Total known gas reserves in the areas have been estimated at 10   trillion cubic feet (300 billion cubic meters).     The two countries agreed in 1979 to jointly exploit resources in   the area while shelving negotiations over territorial claims. 
Malaysia, Thailand say gas project a model for Spratlys 30 Oct 1999 AFP 
ALOR SETAR, Malaysia,  - Malaysia and Thailand on   Saturday described a joint project to produce gas in a disputed  territory off the Gulf of Thailand as an impressive feat and a model  for others to follow.     "This is a landmark agreement because this is the first time two   neighbouring coutries with an ovelapping claim over an area of sea  have agreed to cooperate jointly and share resources," Malaysian  Prime Minister Mahathir Mohamad told reporters.
"It is a good moment for future relations of both countries." 

    Thai premier Chuan Leekpai suggested the gas sales agreement was   a blueprint for exploiting the mineral resources believed to lie  below the disputed Spratly Islands in the South China Sea. 
   "The agreement is a model for the international community to   resolve territorial distputes in a practical and beneficial manner,"  said Chuan in an apparent reference to the Spratlys.     "This is a good moment for us to celebrate," he said, after the   two leaders witnessed the signing of the deal. 

    The operator of the gas facility is the Malaysian-Thailand Joint   Authority, responsible for managing upstream activities in the  disputed Joint Development Authority area.     Malaysia and Thailand agreed in 1979 to jointly exploit   resources in the area, 250 kilometres (156 miles) east of Songkhla  in southern Thailand, while shelving negotiations over territorial  claims.     Under the gas sales agreement, Malaysian oil giant Petroliam   Nasional Bhd. (Petronas) and the state-run Petroleum Authority of  Thailand (PTT) will jointly buy natural gas from the  Malaysian-Thailand Joint Authority.     "The signing of the agreements today marks the culmination of   efforts by the Malaysian and Thai governments to jointly develop the  hydrocarbon resources in the overlapping areas and paves the way for  the biggest joint venture between the two neighbouring countries,"  Petronas said in a statement. 

    "More importantly, the signing of the agreements stands as a   testimony to the success of the unique model of bilateral and  regional cooperation based on a win-win concept ... in resolving  territorial disputes." 

   The Spratlys archipelago is viewed by analysts as one of the   region's potential military flashpoints, along with the Korean  peninsula, the Indian sub-continent and the Taiwan Strait.     China, Taiwan and Vietnam claim the entire chain of about 200   barren islets and partially submerged features sprayed across  150,000 square miles of water. They base their claims on historical  grounds. 
    Brunei, Malaysia and the Philippines claim only some parts of   the Spratlys, based on proximity and other reasons. 

Thai Skytrain back on track after fare deal  3 Nov 1999 AFP 
BANGKOK, - Bangkok authorities and operators of a   new elevated railway have thrashed out a deal to end a row over  fares threatening the network's long-awaited debut. 

    The Skytrain, which will whisk passengers through the streets   above the city's notorious traffic jams, is due to open officially  next month.     But the countdown to operation has been mired in controversy as   critics have branded it a transport system for the rich, claiming  proposed fares were out of reach of average citizens.     Bangkok Transit System Corp. (BTSC) agreed Wednesday to set   fares at between 10 and 40 baht (25 cents to one dollar) for trips  on the skytrain.     That figure was lower than the 15-45 baht ceiling set by the   Bangkok Metropolitan Administration in talks earlier Wednesday for  the first 18 months of operation. 
    BTSC had earlier campaigned for a fare of between 15 and 60   baht.     The 54 billion baht (1.35 billion dollars) skytrain project is   due to open in early December to mark the 72nd birthday of  Thailand's King Bhumibol Adulyadej.