Avery Resources Continues Cooper Basin Drilling Program
Avery Resources says the next well in its Cooper Basin exploration program will be a second exploration well on the company's joint venture Murteree lands. This well, named Light Fingers-1, is located approximately four kilometers southwest of the Toparoa-1 oil discovery. Light Fingers is a similar prospect to Toparoa, identified using the same 3D seismic and also targeting the Hutton Sandstone at a depth around 1,600 meters.
Light Fingers-1 is expected to take less than 10 days to drill, as was the case with Toparoa-1. Avery plans to drill the well in June or July of 2006. Exact timing is yet to be determined due to rig scheduling. Upon drilling of Light Fingers-1, Avery will have earned a 35 percent interest in the entire 12,850-acre PEL 113 Murteree Block.
Test results from Toparoa-1 were announced by Avery on February 20, 2006. As announced, the well flowed at a rate of 1,814 barrels of 42 degree API oil from a six meter oil column in the Hutton Sandstone. The joint venture partners plan to begin production from Toporoa-1 in May 2006, once all physical and regulatory requirements have been met. Based on test results and analogous wells in the area, Avery predicts that production from the well is likely to start at between 1,300 and 1,600 barrels per day, with Avery having a 35 percent interest. Produced oil will be trucked daily to Moomba, approximately 45 kilometers away. The oil will travel the Moomba-Port Bonython pipeline and will be loaded onto tankers for international shipping. Pricing for Avery's Toparoa oil production will be based on the Tapis crude oil price, an Asian index similar to WTI and Brent. Based on current prices, the field netback for the production would be approximately CDN $50 per barrel.
Beyond the forthcoming drilling on the PEL 113 Block at Light Fingers as described above, Avery is planning to participate in another six to eight exploration wells on other Cooper Basin project areas. The bulk of this drilling is scheduled for the last few months of 2006 and would be expected to carry on into 2007.
On the Barta/Wompi Blocks, Avery hopes to drill up to five wells before the end of 2006, subject to the clearing of native titles. Drilling could begin as soon as July or August of 2006, with the first well to be a twin of an abandoned well drilled in the 1980s that logged three meters of oil from the Hutton formation. A second well could potentially be drilled on the same block immediately afterwards.
Meanwhile Avery is also actively pursuing further exploration of its
offshore Katandra Block where the company made an oil discovery in December
2004. The partners intend to shoot a new 3D seismic program over the area
during 2006 leading to a drill decision the following year.