CALGARY, Oct. 17 /CNW/ - Avery Resources Inc. (TSX-V: ARY) ("Avery" or "the Company") is pleased to announce that, further to its press release of August 27, 2007 wherein a Letter of Intent with Santos Ltd. (ASX: STO, NASDAQ: STOSY) ("Santos") was announced, Avery has entered into a formal agreement with Santos to jointly explore and develop the Barta Block (631,000 acres) and the Wompi Block (222,000 acres) in the Queensland sector of Australia's Cooper Basin. The initiative involves a capital program of up to A$18.5 million ($16.3 million) to complete 300 square kilometres of 3D seismic surveys and to drill up to seven wells over the next 18 months. Avery will be responsible for A$4.4 million ($3.9 million) of the full program, which it will fund from its current cash position, with the remaining A$14.1 million ($12.4 million) funded by Santos. As a result, Avery will have earned a 30 percent interest in the Wompi Block and a 25% interest in the Barta Block, with Santos earning 40% and 45% interests respectively. Avery's current partners in the blocks, Bow Energy Limited and Victoria Petroleum Limited, will be entitled to the remaining interests.
"This agreement with Santos, a major Australian oil and gas exploration and production company, will enhance our Cooper Basin exploration and development program while reducing the risk of unsuccessful wells," said David Little, CEO of Avery. "We believe that Santos' application of large 3D seismic programs and their proven track record of finding and developing commercial discoveries in the Cooper Basin will greatly improve our success rate and add value for our shareholders going forward."
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.
About Avery
Avery Resources is an international junior oil and gas exploration company based in Calgary, Alberta that trades on the TSX Venture Exchange under the symbol ARY. It is committed to growing shareholder value through international acquisitions and exploration. Avery's primary interest is in Australia, where it is building a significant presence through partnerships, drilling and acquisitions. Avery has plans to drill up to ten wells over the next year.
Forward looking statements: Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects, acquisitions, 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.
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