The Czechoslovakian High Court upheld an injunction application by the partners in the Breclav License requesting a ruling prohibiting the recalcitrant Czech Oil Company (COC) from encumbering, alienating or otherwise disposing of the Postorna 1 well or from entering into any contracts relating to the Breclav license.

The partners were forced into legal action after COC initiated a series of actions to wrest control of the Breclav licence from the joint venture after the discovery of the Postorna oil pool. These spoiling actions which were successfully blocked by the Canadian-based operator Geocan.

The Ministry of Environment (MOE) called all parties to a meeting in Prague (9th June, 2003). After hearing submissions from both sides of the dispute, Ministry officials gave the parties until 23rd June, 2003 to settle their differences and reach agreement on co-operative development of the Postorna oil field.

The partners then launched the injunction against COC to regain control of the license.

The Postorna 1 well, located in the Czech part of the Vienna Basin encountered an 11m thick unit of high quality reservoir sands with strong hydrocarbon indications from a vertical depth of 1450m.

Perforation of the full 11m interval corresponding to the reservoir sands has resulted in a natural flow of crude oil. Carpathian has a 17.65% contributing interest in the Brecalv License,which secures the Postorna 1 target reservoir.

Carpathian became Australia's latest oil producer with the start of production from the company's Krásná oil field in Czechoslovakia in April.

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.