CALGARY, March 6 /CNW/ - Avery Resources Inc. (TSX-V: ARY) ("Avery" or "the Company") today announced its 3-dimensional ("3D") seismic survey of the Katandra Prospect in the Timor Sea, offshore Australia, is planned to begin this week. Avery has a 10% interest in the Katandra oil discovery, which is analogous to and lies on strike with the Jabiru oil field, 28 kilometers to the southwest. Jabiru has produced over 110 million barrels of oil to date.
In December 2004, the Katandra-1 discovery well, situated in approximately 100 meters of water, drilled a Vulcan Sub-Basin prospect at a depth of 1,450 meters and encountered a seven meter column of light, sweet, 48 degree API oil. Data has been reworked after the initial well was drilled, revealing the potential for further drilling.
The Schwarzer survey, which will be conducted by the operator, OMV Australia Ltd., using the recently-commissioned ship Veritas Voyager, will cover 681 square kilometers including the 272 square kilometer AC/P 24 Katandra permit. The seismic shoot is expected to be complete in six weeks, with processing and interpretation of the data expected within six months.
The partners have budgeted US$3.5 million (net $350,000 for Avery) for the ACP/24 portion of the survey. Completion of the survey satisfies the joint venture's commitment for the second year of the current five year lease on ACP/24.
David Little, Chairman and CEO of Avery, noted that the Katandra Prospect will be a very important asset for Avery if future drilling of the lease is successful. "The aim of the 3D seismic survey is to locate a well that would establish commerciality. Katandra could be the jewel in Avery's crown," he said. "We have been awaiting the commencement of this seismic study for some time and we are very excited to have it underway. Katandra's potential is significant."
This press release, including a map detailing the proposed 3D survey area and a diagram showing further potential drill locations, is available at www.averyresources.com.
About Avery
Avery Resources is an international hydrocarbon exploration and production company based in Calgary, Alberta. The Company is committed to growing shareholder value through international acquisitions and exploration in countries that provide significant exploration upside coupled with favorable fiscal and legal systems. Avery's primary interest is in Australia, where the Company is building a significant presence through production, partnerships, drilling and acquisitions. Avery is focusing its current drilling activity in the Cooper Basin region of Australia.
Disclaimers
Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects, acquisitions, and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
%SEDAR: 00003559E