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Friday, 09 January, 2009, 01:40 GMT | more >>

Avery in Oz farm-in deal



By Upstream staff 

Canadian junior Avery Resources has signed a letter of agreement with Brisbane-based Magellan Petroleum to farm into a 2650 square-kilometre permit area in the Cooper-Eromanga basin of south-east Queensland, Australia.

The company has agreed to the broad terms and conditions of a farm-in on the ATP 732 permit, whereby Avery may earn a 35% working interest in return for spending A$3 million ($2.1 million) on exploration. Avery would be required to access additional capital to meet the financial requirements of the farm-in.

Avery chief executive David Little said: "The Cooper-Eromanga basin is highly prospective. This large permit is not only underexplored, but what little exploration has occurred is several decades old."

Existing 2D seismic shot on the 1 million-plus acre permit is generally sparse. Eight wells have been drilled on ATP 732, which is less than one well per 80,000 acres. Significant hydrocarbon occurrences, primarily light gravity crude oil, lie on trend to most of the permit to the north-east and south-west.

The initial exploration phase of the project is anticipated to start once the Queensland authorities give the official green light.


Thursday, 08 July, 2004, 13:51 GMT  | last updated: Thursday, 28 April, 2005, 12:01 GMT

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