Discovery Geo Finally Awarded Exploration Permit in Australia

Discovery Geo Corporation, a privately held oil and gas exploration company located in Grapevine, Texas, was awarded Authority to Prospect 634P (ATP-634P) by the Queensland Ministry of Mines, Queensland, Australia. ATP-634P is a permit that will allow Discovery Geo the right to explore for and produce oil, gas and other hydrocarbons located on the lands within the permit area.

Discovery Geo made application for the permit in late August 1996 and was notified by the Queensland Department of Mines and Energy of Discovery Geo's selection as the "preferred explorer" on Dec. 19, 1996. Notwithstanding such notification, the formal award of the Permit was indefinitely delayed as a result of native title claims. After negotiations and ultimately hearings before the Native Title Tribunal, the Federal Court of Australia denied the native title claims in February 2007 thereby clearing the way for Discovery Geo to be awarded the permit free and clear of any native title claims for the duration of the ATP.

ATP-634 covers lands located in the Cooper-Eromanga Basin in southwest Queensland, Australia, and comprises approximately 965,000 acres or 3,885 square kilometers. Approximately 2,200 miles (3,540 kilometers) of digital 2D seismic data of 1980s to early 1990s vintage has been acquired over portions of the permit area as well as other geological and geophysical data. Discovery has identified multiple geological structures on the acreage block which Discovery believes to be prospective and to warrant exploration, drilling and testing.

Historical oil and gas production from existing fields surrounding or nearby the Permit has exceeded 70 million barrels from 1980 through mid 1998. In addition, new activity in these fields is either under way or has been announced. This activity coupled with the exploration program that will be implemented by Discovery and its partners has the potential for mirroring the success that explorers on the South Australian side of the basin have experienced since 2003.