Seismic Survey Concludes in Offshore Otway

Great Artesian Oil and Gas Limited

Great Artesian Oil and Gas Limited said that Oilex N.L., operator of the EPP 27 Joint Venture in the Otway Basin offshore Australia, has completed acquisition of a marine seismic survey totaling approximately 1325 km of 2D seismic data, within Permit EPP 27.

Using the M.V. Pacific Titan, the survey has provided an extension of the existing seismic grid covering some eight potential leads into the central and eastern portions of the permit. These parts of the permit are believed to have greater oil potential.

This marine seismic survey is the first phase of the work program being fully funded by the farminees: Oilex, Gujarat State Petroleum Corp. Ltd (GSPC), and Videocon Industries Ltd. The new seismic data is expected to provide enhanced subsurface imaging, in order to determine which of the existing leads may be upgraded to prospects, and ultimately from these prospects, to select the optimal drilling location for an exploration well. The processing and interpretation of the newly acquired seismic data is planned to be completed by October 2006 with the aim of drilling a well at the earliest opportunity thereafter, depending on the availability of a suitable drilling rig.

As part of the farmin agreement announced on March 1, 2006, the farminees will also fully fund an offshore exploration well in order to each earn a 20% interest in the permit. Great Artesian will retain the remaining 40% interest in EPP 27. The agreement also provides an option for the farminees to fully fund a second well in order increase their respective interests to 25% each, with Great Artesian retaining the balance, 25% interest in the permit.