Avery Resources to Explore Cooper Basin, Australia
|Thursday, July 08, 2004
Avery Resources has signed a letter agreement with Magellan Petroleum Pty Ltd. of Brisbane, Australia on a 2,650 square kilometer permit area in the Cooper-Eromanga Basin of southeast Queensland.
The company has agreed to the broad terms and conditions of a farm-in on a permit known as ATP 732, whereby Avery may earn a 35 percent working interest in the lands subsequent to the expenditure of three million Australian dollars on exploration. Avery would be required to access additional capital to meet the financial requirements of the farm-in.
David Little, Chairman and CEO said Avery is excited about this opportunity. "The Cooper-Eromanga basin is highly prospective," Little said. "This large permit is not only under-explored, but what little exploration has occurred is several decades old."
The existing 2D seismic on the one million-plus acre permit is generally sparse; large areas have only a regional grid, small areas have a semi-regional to semi-detailed grid and isolated areas have detailed seismic, some of which have been drilled. Eight wells have been drilled on ATP 732 which is less than one well per 80,000 acres. Significant hydrocarbon occurrences, primarily light gravity crude oil, lie on trend to most of the permit to the NE and SW.
The initial exploration phase of the project is anticipated to commence upon the formal granting of the Authority to Prospect by the Queensland Department of Natural Resources and Mines.
This is Avery's third project in Australia. As previously announced, Avery is involved in a natural gas exploration play in the Darling Basin of New South Wales. The company also has an option to participate in the Katandra well in the Timor Sea. Australia offers world-class oil and gas prospects in a stable and favourable 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.