logs indicate oil play

ASX RELEASE
18 December 2006
Eureka Energy Limited (ASX:EKA, “Eureka” or “Company”)
KOYUNLU-1 WELL- LOGS INDICATE OIL PAY
Operations
The Operator reported that at midnight Eastern European Time on 17 December 2006, the well was waiting on cement to set after a remedial cement job to seal the base of the 7 inch casing prior to flow testing.
Since our last report on the 11 December 2006, swabbing operations to test the 41 metre interval of fractured Garzan Formation carbonates between 1,211 metres (depth adjusted after wire-line logging) and 1,252 metres (total depth) were terminated when water from an overlying formation was found to be entering the well-bore from behind the 7 Inch casing, thereby invalidating any test.
While preparations were made to re-cement the 7 Inch casing, wire-line logs were run over the 41 metre Garzan Formation interval which had oil and gas shows during drilling.
Interpretation of the logs by independent experts, indicated the full 41 metre fractured limestone interval was oil bearing, with net oil pay of 24 metres. There is no oil-water contact in the section logged. Reservoir characteristics, including porosity, are comparable to producing fields in the region.
After wire-line logging, remedial re-cementing of the 7 inch casing was carried out and at midnight the crew was waiting on cement to set. If pressure tests show that the remedial cementing is successful, the well will be cleaned out and the reservoir section flow tested.
The results of flow testing will be reported as they become available.
Background
Eureka has acquired farm-in rights to earn a 20% interest together with an option to increase its interest to 45%, in two adjoining exploration licences covering about 500 square kilometres in South East Turkey. This project is known as the Bismil Project. The Koyunlu-1 well is the first of two farm-in wells to be drilled in the licences.