Ausam Spuds Ungabilla-1 Well

Ausam Energy has spud the Ungabilla-1 well, the third well in its 2005 drilling program in the Surat/Bowen Basin of Queensland.

The first two wells, the Namarah-7 and Parknook-7, are part of a series of development wells to be drilled in the PL71 production licence in Queensland, Australia. The PL 71 licence, which contains the producing Parknook and Namarah fields, is a 33,112 acre (52 section) permit located in the Surat Basin of Queensland, Australia. The up-hole sections of both wells were drilled conventionally, logged and cased on time, on budget and on target to the top of the Showgrounds sandstone. A coiled tubing unit will subsequently be used to drill underbalanced into the Triassic Showgrounds and Rewan reservoirs of both wells. Results from the coiled tubing completion are expected in late June 2005.

On May 14, 2005, drilling commenced on the Ungabilla-1 exploration/commitment well in ATP 754P. The Ungabilla-1 well will be drilled conventionally to test initially the upper Tinowon sandstone. The Ungabilla-1 is expected to take approximately 19 days to reach an anticipated depth of 2860 meters. Comprehensively logging and testing the Ungabilla-1 well will not only enable Ausam to evaluate the prospectivity of the Ungabilla prospect, but will assist in the completion of a regional study currently in progress.