drilling plans exmouth plateau permits

UPDATE ON DRILLING PLANS FOR EXMOUTH PLATEAU PERMITS
KEY POINTS
? OMV, as the Operator of the WA-362-P and WA-363-P exploration permits, has advised Octanex that final processing of the seismic data obtained from the Schiele 3D survey is almost complete.
? A decision concerning the location of the well OMV and Eni have committed to drill is expected to be made during December 2010.
? Subject to receipt of all required regulatory and joint venture approvals, including settling on the choice of rig, drilling operations are now expected to commence within the first quarter of 2011.
Octanex N.L. (ASX Code: OXX) (?Octanex?) is pleased to provide a report updating shareholders on the progress of the exploration of WA-362-P and WA-363-P and ongoing drilling preparations.
Since acquisition of the ~3950km2 Schiele 3D seismic survey over portions of WA-362-P and WA-363-P was completed in July 2010 (see map below), the Operator of the permits, OMV Australia Pty Ltd (?OMV?), has made good progress with the processing of the seismic data. The final processing sequences are underway and the fully processed data set is expected to be available for final mapping and interpretation before the end of the month. OMV has advised that the quality of the seismic data is good to excellent.
At this point, the joint venture has not made a decision as to which of the various features identified from the Klimt 2D survey acquired in 2008 is to be drilled nor in which of either WA-362-P or WA-363-P such well is to be drilled. A decision is expected to be made during December 2010. Further announcements will be made about the drilling target once a drilling location has been determined.
OMV, in its capacity as Operator for WA-362-P and WA-363-P, has further advised that drilling operations are expected to commence during the first quarter of 2011. This will require OMV and Eni to have decided on the choice of a rig, to have settled on a drilling location and for all regulatory approvals to be in place. No firm date for drilling can be advised at this point, until all of these steps have been completed.
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Under the terms of its contractual arrangements with OMV and Eni, Octanex is not required to make any financial contributions to the costs of the 3D seismic survey or the well that OMV and Eni have committed to drill in either of WA-362-P or WA-363-P. Octanex currently has a 40% interest in each of these permits, which interest will reduce to 20% in respect of the permit in which the well is to be drilled.