AYCO Moving on to Drill Pitchford-2 Onshore US Gulf Coast

The operator of the NE Waller Prospect onshore the US Gulf Coast, AYCO, has advised First Australian Resources (34% interest) that the drilling of the Pitchford-1 well has been completed and that wireline logs have been run. The logging results did not indicate the presence of hydrocarbons and the well will now be plugged and abandoned.

Pitchford-1 was the first well selected for testing the number of shallow prospects and leads at Frio level. A full modern log suite was run in the well in order that this well would serve as a calibration of the 3D seismic over the other Frio prospects and leads. The partners in the venture will evaluate the remaining Frio opportunities in light of the information from the Pitchford-1 well before making a decision on the future drilling of these prospects.

The operator advised that the rig contracted for the drilling of the Pitchford-2 well is expected to move onto location this weekend. The well, a planned 7100' Yegua test, will be drilled by Black Creek Drilling, Inc and is expected to take approximately ten days to drill.

The Pitchford-2 prospect is mapped as a counter regionally dipping fault with a significant upthrown structural closure in the Eocene Cockield and Yegua intervals. Both horizons are important oil and gas producers in the immediate area. Reservoir quality and thickness are assured at this location. Both sand sequences are regional in deposition and are present in nearby wells. Pipeline facilities exist within one mile of the drill location.



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