The highlights of the Avery/Santos initiative are as follows: Total Program ((x)Australian $): Capital: $18.5 Million Cost Sharing: Avery 23.95% - $4.4 Million Santos 76.05% - $14.1 Million Operator: Santos Ltd. Components: Wompi Block: 4 wells $6.8 Million 200 Km(2) 3D Seismic 3.4 --- $10.2 Million ----- Post Program Interests: Avery 30% Santos 40% Partners 30% Barta Block: 3 Wells $6.6 Million 100 Km(2) 3D Seismic 1.7 --- $8.3 Million ---- Post Program Interests: Avery 25% Santos 45% Partners 30% (x) $1.00 Canadian (equal sign) $1.16 Australian
Santos Ltd is a major Australian oil and gas exploration and production company based in Adelaide with interests and operations in every major Australian petroleum province. Avery's association with Santos will assist in reducing the risk of Avery's Cooper Basin exploration program through the application of the above mentioned large 3D programs along with Santos' expertise in all disciplines and its proven track record of finding and developing commercial discoveries in the Cooper Basin. Preparation of the program will commence immediately with the first wells being drilled during the first quarter of 2008 followed by a rolling out of the balance of the program over a period of eighteen months from the signing of the Letter of Intent.
The management of Avery believes this program will provide a significant opportunity to add value for our shareholders over the near to medium term.
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