FAR Reports Spudding of Lake Long Well

The SL 328#9 well in the Lake Long Project in Lafourche Parish, La., spudded on May 12, 2007, according to First Australian Resources Limited (FAR). On Tuesday, the well was drilling ahead at 2,100 feet using Todco Rig 29. The well has a planned total depth of 13,555 feet and is expected to take approximately 48 days.

The operator, Kriti Exploration Inc, has reworked the interpretation of the prospect and estimates potential at 21.7 BCF of gas and 760,000 barrels of oil if all three objectives work--including 10.7 BCF of gas in the Lower Hollywood zone.

Kriti estimates additional potential in offset fault blocks within the field of 28.7 BCF of gas and 1,000,000 barrels of oil.

The prospect is supported by a combination of 3D seismic and subsurface well control tied into FAR's successful SL 328 #1 well. The control well was drilled in 2004 and came online at the rate of 5.6 million cubic feet of gas and 301 barrels of oil per day and is still producing at a daily rate of 3.6 million cubic feet of gas and 60 barrels of oil. BP has provided a lease to enable the well to progress. Participants in the well include recent farminees Sun Resources NL and Amadeus Energy.