Great Artesian Suspends Cadenza-1 as a Gas Discovery

Great Artesian says that the Cadenza-1 is being cased and suspended as a potential future gas producer. Further cased-hole production testing will be conducted in about three months when appropriate equipment and a smaller workover rig are sourced. DST-2 over the interval 2641-2644m was aborted on Saturday because of a mechanical packer failure. It was then decided to protect the hole with casing and defer further testing until a later date. Based on analysis of wireline logs and gas shows encountered while drilling a number of hydrocarbon bearing zones are interpreted in the well. DST-1 conducted on 2 June has previously confirmed deliverability from the zone 2691-2694m with a flow of 1.5 million cubic feet of gas per day (MMCFGD) through a ½ inch choke.

Ensign Rig #30 commenced drilling Cadenza-1 on May 18, 2006 and reached a total depth of 2993m in the Merrimelia Formation on May 30, 2006. Drilling and evaluation of Cadenza-1 was expected to take approximately 21 days. The rig is expected to be released late today or early tomorrow.

The Cadenza-1 well was fully funded by Energy Investments Limited a fully owned subsidiary Everdue Pty Ltd. In the event of a commercial discovery both Great Artesian and Energy Investments will each hold a 50% interest in any subsequent production license.

Cadenza-1 is located approximately 2.5 km north-northeast of the Paranta-1 new gas/condensate discovery. Cadenza-1 targeted an anticlinal feature which has the potential to host a total of between 12 (P50) and 28 (P10) BCF of gas within a number of levels of the Patchawarra Formation. The Patchawarra Formation is the primary reservoir target within the region and contains the main zones of interest within the Rossco-1, Udacha-1 and Middleton-1 wells. Additional, secondary, potential is anticipated within the underlying Tirrawarra Formation. The Cadenza Prospect was delineated following interpretation of the Paranta 3D Seismic Survey acquired in October 2005 and also funded by Everdue.

Cadenza-1 is now the sixth, successive exploration well that Great Artesian has participated in since August 2005 to be fully funded by farminees. All three wells that Great Artesian has participated in this year (Udacha-1, Middleton-1 and Cadenza-1) have resulted in new field gas discoveries.