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Avery Resources Prepares for Australian Production Startup and Provides Exploration Update
Avery Resources Prepares for Australian Production Startup and Provides Exploration Update.
About this update from Bengal Energy Ltd.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Sept. 29 /CNW/ - Avery Resources Inc. (TSX-V: ARY) today\nannounced it has been advised by the operator that production startup\noperations have commenced at its Toparoa-1 oil discovery in the South\nAustralian sector of the Cooper Basin. Avery has a 32.67 percent interest in\nthe well. An arrangement was made to produce the Toparoa-1 oil into the\nrecently built-out pipeline system, rather than trucking the oil, and Avery\nhas received a $1.4 million cash payment as compensation for the necessary\ntimeline revision. With regard to exploration activity, Avery is planning a\nthree-well back-to-back drilling program in December 2006 in the Queensland\nsector of the Cooper Basin, and an additional seven wells are planned in the\nCooper Basin throughout 2007 and into the first quarter of 2008.\n\"Avery is looking forward to a busy and exciting fourth quarter in\nAustralia,\" said David Little, Chairman and CEO of Avery Resources. \"With our\nfirst Australian production coming on-stream and a busy seismic and drilling\nprogram planned, we are working hard to add value for our shareholders.\"\n\nProduction\n\nProduction from Toparoa-1, located in the Murteree Block of PEL 113\n(Avery 35%) in the South Australian sector of the Cooper Basin, is expected\nimminently, subject to crew scheduling by the field operator, Santos Ltd. In\nrecognition of the Toparoa-1 production delays and in accordance with the\nproduction arrangement, Avery negotiated and received a payment of\n$1.4 million CDN. Production via pipeline will eliminate the increased risk of\ndown-time associated with trucking, including adverse weather and difficult\nroads, in this outback location.\nToparoa-1 drill-stem tested at 1,814 barrels of oil per day (bopd). The\nwell will initially free-flow into an onsite storage tank, prior to diverting\nto the flow line. An ESP (electric submersible pump) is planned to increase\nproduction by late October. It will produce from the Hutton sandstone\nformation similar to the adjacent Derrilyn oilfield, 1.3 km to the northeast,\nwhich is also operated by Santos. With approximately the same net pay\ninterval, Derrilyn-1 produced approximately 500,000 barrels of oil from the\nformation in its first 12 months of production.\n\nExploration\n\nAvery is planning substantial fourth quarter 2006 seismic and drilling\nactivit...