CALGARY, Aug. 27 /CNW/ - Avery Resources Inc. (Avery) (TSX-V: ARY) is pleased to announce that it has entered into a Letter of Intent, to be followed by a formal agreement, with Santos Ltd (Santos) whereby Avery and Santos will jointly explore and develop, subject to certain terms and conditions, two of Avery's large land blocks in the Cooper Basin of Queensland, Australia. The blocks are currently held by Avery and its partners Bow Energy Limited and Victoria Petroleum Limited (Partners). The lands are located on the oily rim of the Basin and consist of the Barta Block and the Wompi Block containing 631,000 acres and 222,000 acres respectively. The Barta and Wompi Blocks are adjacent to lands held by Santos which are the subject of the Santos Cooper Oil Project (COP). COP is the largest and most comprehensive Australian Exploration and Development Program ever undertaken consisting of a capital expenditure program in excess of $1.3 Billion and incorporating large 3D seismic surveys and large scale drilling programs (1,000 wells). The program to date has an overall success ratio including new pool discoveries, development wells and satellite pool discoveries of approximately 80%.
The highlights of the Avery/Santos initiative are as follows:
Total Program ((x)Australian $):
Capital: $18.5 Million
Cost Sharing: Avery 23.95% - $4.4 Million
Santos 76.05% - $14.1 Million
Operator: Santos Ltd.
Components:
Wompi Block:
4 wells $6.8 Million
200 Km(2) 3D Seismic 3.4
---
$10.2 Million
-----
Post Program Interests: Avery 30%
Santos 40%
Partners 30%
Barta Block:
3 Wells $6.6 Million
100 Km(2) 3D Seismic 1.7
---
$8.3 Million
----
Post Program Interests: Avery 25%
Santos 45%
Partners 30%
(x) $1.00 Canadian (equal sign) $1.16 Australian
Santos Ltd is a major Australian oil and gas exploration and production company based in Adelaide with interests and operations in every major Australian petroleum province. Avery's association with Santos will assist in reducing the risk of Avery's Cooper Basin exploration program through the application of the above mentioned large 3D programs along with Santos' expertise in all disciplines and its proven track record of finding and developing commercial discoveries in the Cooper Basin. Preparation of the program will commence immediately with the first wells being drilled during the first quarter of 2008 followed by a rolling out of the balance of the program over a period of eighteen months from the signing of the Letter of Intent.
The management of Avery believes this program will provide a significant opportunity to add value for our shareholders over the near to medium term.
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 is planning 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.
%SEDAR: 00003559E