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Avery Resources Follows Up Santos Letter of Intent with Formal Joint Exploration and Development Agreement
Avery Resources Follows Up Santos Letter of Intent with Formal Joint Exploration and Development Agreement.
About this update from Bengal Energy Ltd.
[{"type":"text","content":"\n\n\n\nCALGARY, Oct. 17 /CNW/ - Avery Resources Inc. (TSX-V: ARY) ("Avery" or\n"the Company") is pleased to announce that, further to its press release of\nAugust 27, 2007 wherein a Letter of Intent with Santos Ltd. (ASX: STO, NASDAQ:\nSTOSY) ("Santos") was announced, Avery has entered into a formal agreement\nwith Santos to jointly explore and develop the Barta Block (631,000 acres) and\nthe Wompi Block (222,000 acres) in the Queensland sector of Australia's Cooper\nBasin. The initiative involves a capital program of up to A$18.5 million\n($16.3 million) to complete 300 square kilometres of 3D seismic surveys and to\ndrill up to seven wells over the next 18 months. Avery will be responsible for\nA$4.4 million ($3.9 million) of the full program, which it will fund from its\ncurrent cash position, with the remaining A$14.1 million ($12.4 million)\nfunded by Santos. As a result, Avery will have earned a 30 percent interest in\nthe Wompi Block and a 25% interest in the Barta Block, with Santos earning 40%\nand 45% interests respectively. Avery's current partners in the blocks, Bow\nEnergy Limited and Victoria Petroleum Limited, will be entitled to the\nremaining interests.\n\n\n"This agreement with Santos, a major Australian oil and gas exploration\nand production company, will enhance our Cooper Basin exploration and\ndevelopment program while reducing the risk of unsuccessful wells," said David\nLittle, CEO of Avery. "We believe that Santos' application of large 3D seismic\nprograms and their proven track record of finding and developing commercial\ndiscoveries in the Cooper Basin will greatly improve our success rate and add\nvalue for our shareholders going forward."\n\n\nThe Barta and Wompi Blocks are adjacent to lands held by Santos which are\nthe subject of an accelerated exploration and development program being\nundertaken as part of the Santos Cooper Oil Project.\n\n\nAbout Avery\n\n\nAvery Resources is an international junior oil and gas exploration\ncompany based in Calgary, Alberta that trades on the TSX Venture Exchange\nunder the symbol ARY. It is committed to growing shareholder value through\ninternational acquisitions and exploration. Avery's primary interest is in\nAustralia, where it is building a significant presence through partnerships,\ndrilling and acquisit...