Avery Resources Inc. provided an update on its operations in India and Australia. The Company has signed a Joint Bidding Agreement with one of India's government-owned national oil companies and a large Indian private sector energy company, to participate in the upcoming Seventh New Exploration Licensing Policy (NELP VII) Round of land parcels offered by the Indian government for oil and gas exploration. In Australia, Avery has begun drilling the second well of its 2008 drilling program and plans to begin drilling a third well in late June.
Avery's new management team has chosen to bid in the NELP VII Round for several reasons. India is a net importer of oil and gas, producing only 25% of its petroleum requirements, and is the world's fourth largest consumer of energy. As a Commonwealth country and the world's largest democracy, it has a long-established history of British common law and an attractive fiscal environment. NELP bidding rounds are generally held every year, and over the last six years some of the world's largest oil and gas discoveries have been made in India. Avery's bidding partners are experienced with the NELP process and are well capitalized, greatly improving Avery's chances of success. The deadline for bids is June 30, 2008.
In Australia, Avery will begin drilling this week, the second well in a seven-well drilling program with its joint venture partner Santos Ltd., a major Australian oil and gas exploration and production company. Santos expects the well, located in the Queensland sector of Australia's Cooper Basin, to be drilled to a depth of 2,434 meters. This exploration test is located 20 kilometers southwest of the Company's most recent well, and will test a structural oil prospect mapped on the same trend as the recent oil discovery.
The first well drilled pursuant to the Santos-operated joint venture, discovered six meters of potential oil pay within a new zone for the area, the Murta Sandstone. This well is expected to be completed in mid-July and oil will be transported through existing infrastructure operated by Santos. The new oil well is located six kilometers west of the Santos-operated Cook Oil Field. Avery entered into a formal agreement with Santos in October 2007 for a seven-well program to jointly explore and develop the Barta and Wompi blocks within ATP-752P. These blocks are adjacent to lands subject to an accelerated drilling program by Santos.
Avery plans to begin drilling the third well in its 2008 Australian drilling program, in late June on the 13,100 acre Murteree sub-block of PEL-113 in the South Australian sector of the Cooper Basin. Avery has earned a 35% interest in the block. The well is located 4 kilometers northwest of Avery's Toparoa-1 oil discovery. Australian exploration and production company Stuart Petroleum Limited will be the operator.
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