The well will be located in 110 meters of water and has a recoverable reserve potential of 102 million barrels (mmbbls) of oil and potential production rates in excess of 15,000 barrels of oil per day (bbl/d). The Katandra drilling location is seismically defined with the nearest on-trend analog being the Jabiru Oilfield located 28 km southeast. The Jabiru Oilfield has produced in excess of 100 mmbbls of oil to date. OMV, a multinational integrated oil and gas company with previous success offshore Australia, will be the operator and has contracted a rig which is expected to be on location during late September. The cost of the well is estimated at AU$6.2 million including rig mobilization and demobilization. The company anticipates accessing additional capital before potentially exercising its option to drill the Katandra prospect.
This is the second prospect in Australia for Avery with additional opportunities being evaluated and negotiated. As previously announced, Avery is involved in a natural gas exploration play in the Darling Basin of New South Wales. The company and its partner are currently evaluating existing data and anticipate shooting a seismic program by Q1 2005. Avery's expanding opportunity base in Australia also includes finalizing negotiations of an on-trend oil and gas prospect located in the prolific Cooper Basin area of onshore Queensland. Australia provides world class oil and gas prospects in a stable and favorable legal and fiscal environment.
Avery Resources Inc. is an international junior oil and gas exploration company based in Calgary, Alberta that trades on the TSX Venture Exchange under the symbol ARY. The company is committed to growing shareholder value through international acquisitions and exploration. Avery's primary interest is in expanding exploration projects in oil and gas basins in countries that provide significant exploration upside coupled with favorable fiscal and legal systems.
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