Great Artesian: Cooper Basin Survey Completed

Great Artesian Oil and Gas Limited said that the contractor Terrex Seismic has completed the acquisition of the 500-square-kilometer Spinel 3D Seismic Survey in PEL91 and PEL106 in the South Australian Cooper Basin. Processing and interpretation of the data is expected to take another 3 to 6 months, which will result in a drilling program of three to six wells.

"This dataset will mark an exploration milestone in our understanding of the geology of the PEL 106 area," Technical Director Chris Carty suggested.

Great Artesian operated the Spinel 3D Seismic Survey on behalf of a number of joint venture parties. The total cost of the survey is approximately $7.6 million and is mostly funded by farminees, principally Energy Investments Limited and Beach Petroleum Limited. An investment of this magnitude by farminees for seismic acquisition is a clear indication of the prospectivity and inherent value of Great Artesian's Cooper Basin assets. The 3D dataset will not only provide the basis for the next round of exploration drilling, but will also provide the necessary information for the commercialization and development of Great Artesian's existing gas discoveries in the area.

Line clearing operations for the Spinel 3D Seismic Survey commenced on 14 December 2006, with operations continuing throughout the intense heat of the Cooper Basin summer until recording was completed on 15 April 2007.

Operations were completed ahead of time and within budget. Great Artesian thanks the management and personnel of the contractor, Terrex Seismic, for the professionalism and commitment that they have shown in carrying out this work. The 500-square-kilometer Spinel 3D Survey represents one of the largest purely exploration 3D surveys carried out in the Cooper Basin.

Acquisition involved the layout and recording of a grid of some 3120 kilometers of traverses across the area. A map of the survey area is shown on the following page.

Under existing farmin arrangements, Beach Petroleum will fully fund two exploration wells within the Beach Farmin Block portion of the Spinel 3D survey area. Energy Investments will also fund between one and four wells within the Spinel Farmin Block. Once drilling is completed Great Artesian will retain a 50% interest in both blocks.

Great Artesian believes that the acquisition of new seismic data, such as the Spinel 3D Survey, is essential to the identification of future drilling targets and hopefully discoveries. For this reason Great Artesian is participating in further seismic acquisition programs. The Terrex seismic crew is currently moving to the 160-square-kilometer "Spencer-Kiana-Muteroo 3D Seismic Survey" in PEL107 and then to the "Ficus 2D Survey" in PEL 107 and PEL106, where Great Artesian is a joint venture participant.