Avery Spuds First Well in Cooper Basin Agreement with Santos
Avery Resources Inc. announced the start of its 2008 Australian drilling program with the spud of Cuisinier-1 on April 21 as part of a Joint Venture with Santos Ltd. ("Santos"), Bow Energy Limited and Victoria Petroleum Limited on the Cooper-Eromanga Basin permit ATP 752P located in Queensland, Australia. This dual target well will test the hydrocarbon potential within the Hutton Sandstone and the Doonmulla Member (Tinchoo Formation) in a structural high located approximately 6 km west of the Santos operated Cook oil field. Avery entered into a formal agreement with Santos in October, 2007 to jointly explore and develop the Barta Block (631,000 acres) and the Wompi Block (222,000 acres) within ATP752P. The Barta and Wompi Blocks are adjacent to lands held by Santos which are the subject of an accelerated exploration and development program being undertaken as part of the Santos Cooper Oil Project.
Avery has the option to drill up to 3 wells to earn up to 25% interest in the Barta Block. Avery will be carried on 100 sq km of 3D seismic and will pay the costs equivalent to 1.45 wells to earn its interest. The Cuisinier 1 well is the first well of this program. The second well, named Hudson 1, is scheduled to spud by the end of June. Avery has the option to drill up to 4 wells on the Wompi Block to earn up to 30% interest. Avery will be carried on the first three wells and on 200 sq km of 3D seismic and pay only 0.45 of one well to earn its interest. The first well on the Wompi Block is expected to be drilled in the 3rd quarter of 2008. Total capital exposure to Avery for the Santos Joint Venture is estimated at $4.2 Million.
Avery's association with Santos will assist in reducing the risk of Avery's Cooper Basin exploration program through the application of the above mentioned large 3D seismic programs. Avery will also benefit from Santos' expertise in all disciplines and its proven track record in finding and developing commercial discoveries in the Cooper Basin.
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Company: Avery Resources more info
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