FAR to Participate in Lake Long Deep Well

First Australian Resources (FAR) has now executed a Participation and Operating Agreement with Kriti Exploration Inc and Palace Exploration Company in which FAR will participate in the proposed Lake Long Deep Test well.

A drilling permit has been filed with the State of Louisiana and tenders have been called for the drilling of the Palace Exploration State Lease 328 #1 well, a planned test of deep Miocene sands estimated by Kriti Exploration Inc to have potential reserves in the order of 766 billion cubic feet of gas equivalent. The well is planned for June 15, 2004.

In other news FAR has accepted an unsolicited offer to purchase certain non-core producing assets owned in Hemphill County, Texas which were originally acquired as part of the West Buffalo Wallow exploration program undertaken in 1996. Under the agreement, which is subject to due diligence being undertaken by the purchaser, Peak Energy Resources, Inc., FAR will convey its interest in Sections 29, 30, 47 and 48 located in Hemphill county Texas for a total consideration of US $173,950.