Drilling operations were completed on schedule and on budget. Under the terms of a farm-out agreement announced in August 2004 with ONGC Videsh Limited, OVL funded 80% of the South Galapagos #1 drilling costs to earn a 55% working interest in permit WA-306-P.
The primary target comprising approximately 200 meters of porous sandstone in the Jurassic section was encountered by the well but subsequent geophysical log interpretation indicates that this section does not contain oil or gas. Results from the South Galapagos drilling program will be evaluated by the joint venture participants to identify further opportunity on the permit and surrounding area. Under the farm-out agreement with OVL, Antrim remains Operator of the joint venture and retains a 32.5% interest in Permit WA-306-P. The remaining 12.5% working interest is held by Magellan Petroleum (W.A.) Pty Ltd.
Antrim and Magellan each continue to hold a 50% working interest in the adjacent permit, WA-307-P.
Stephen Greer, Chairman and CEO of Antrim said "We are obviously disappointed with the drilling results from the South Galapagos #1 well. However, the thick porous Jurassic sandstone section encountered in the well provides the Company with sufficient encouragement to continue exploration on the Australian permits which cover over 2.0 million acres."
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