The Board of Adelaide-based petroleum explorer, Austin Exploration Limited, has executed a AUD$5M investment letter of intent with a private Australian based investment group. The investment, when executed, will ensure the Company has adequate resources for the first year of development at the newly acquired gas project in the United States.
"The recent drilling results at our Park City project have increased the visibility of the company significantly. For the first time since our initial IPO two years ago, we are being analyzed by investment institutions that do not normally follow "Junior Explorers". This investment will give us the financial resources needed to complete an entire year of drilling," Austin's Managing Director, Mr. David Schuette, said.
"I am very pleased that our core company strategy of identifying suitable development prospects, conducting thorough geological and engineering evaluations and then identifying suitable farm-in partners for long-term development has proven to be sound.
Austin's Park City drill schedule envisages that up to 44 producing wells should be completed by the end of calendar 2008 with the opportunity to drill more than 200 wells in total on the field by the end of 2011.
Austin is earning an undivided 75% Working Interest and 56.25% Net Revenue Interest for every well drilled in Park City.
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