Avery Resources Adds to Cooper Basin Portfolio in Australia
Avery Resources has increased its portfolio by gaining entry to another large land block along the highly prospective southeastern oil rim of the Cooper Basin in Australia. Avery has concentrated its onshore activities on Australia's most prolific hydrocarbon province. Avery has executed a binding "Heads of Agreement" with Sunshine Gas Limited (Sunshine) on ATP 789P located in the Cooper Basin oil province of western Queensland. Avery will earn a 40 percent interest in the entire ATP 789P in return for funding a 150 kilometer 2D seismic program and drilling one well. Sunshine will remain operator.
ATP 789P occupies 1,478 square kilometers ((greater than)365,000 acres) and shares its western boundary with the Kenmore and Bodalla South production licences. The Kenmore oil field has produced more than 12 million barrels and Bodalla South has produced 6 million barrels of oil to date. The Bargie oil discovery adjoins the eastern permit boundary.
"Our team is encouraged by this block's proximity to two significant oil fields along the southeastern rim of the Cooper Basin. This is an area where our technical team has significant experience and expertise," says Avery Chairman and CEO David Little. "Meanwhile, the fact that only three wells have been drilled in this large permit means that it is under-explored and provides an attractive exploration opportunity for Avery."
Avery's joint venture with Sunshine is effective March 1, 2006. On the basis of existing seismic data covering portions of the block, Avery has identified several structures in the licence that will be candidates for additional 2D seismic. The goal of the seismic program will be to high grade the structures for drilling. Targets in the licence are expected to be in the vicinity of the producing Kenmore and Bodalla South fields. At this stage Sunshine is aiming to commence seismic acquisition later this year with subsequent oil exploration drilling early in 2007.
Avery looks forward to joining Sunshine in the exploration of this exciting oil-prone Cooper Basin Block. Avery now has onshore Cooper Basin projects with Stuart Petroleum and Innamincka Petroleum in South Australia, and Victoria Petroleum/Bow Energy, Magellan Petroleum and now Sunshine Gas in Queensland. In addition, Avery also has an interest in the Katandra-1 oil discovery in the Timor Sea off Australia's North West coast.
Sunshine is listed on the Australian Stock Exchange (ASX) and is an
established explorer and producer. Sunshine's operations are focused initially
on conventional natural gas, oil and coal seam natural gas in Queensland. More
recently, the UK Continental Shelf has been added as a focus area. Sunshine
operates most of its exploration acreage in Australia, and has interests in 16
Production Licences and 13 Authorities To Prospect for Petroleum (ATP's) in
Queensland covering an area of approximately 37,000 km(2).