more oil.. carter lease trifecta

TRIFECTA FOR CARTER LEASE
Date: 24th August 2007
To: Companies Announcement Office, ASX
By Electronic Lodgement Number of Pages: 1
The Company is pleased to announce that its’ wholly owned subsidiary Sunset
Energy LLC has completed the third of its wells on the Carter Lease (Carter #21)
as an oil producer.
The well reached a total depth of 310 feet (95 metres) and encountered oil at
281ft (86.5 metres) which continued for a further 27 ft (9 metres) to 308 ft (94
metres). Drilling ceased at 310 ft (95 metres) with oil being blown to surface
during drilling. No water was encountered during drilling after setting surface
casing. The well is now being completed as a producer and is being fitted with a
pump and tank. Pumping will commence as soon as possible.
The producing horizon is the Granville Sand and was delineated using results
from the seismic survey recorded late last year. The Granville Sand is known to
produce oil in the range of 5 to 10 barrels per day with the occasional well over
30 barrels per day. This geological formation is well known for producing over
many years in fact several have produced for over thirty years although only at
one barrel per day at the end of their lives.
Shallow Granville wells cost the company in the vicinity of US$12,000 to drill and
complete, and with a US oil price of $70+ per barrel the Company will most likely
recover its initial drilling costs within two months of the commencement of
production.
The contracted drilling rig has now been released for maintenance for 10 days
which gives the Company’s workers time to set up the successful wells on pump
and attend to further maintenance of the existing producing wells
The Company is delighted with this recent drilling success, which supports the
concept of oil farming. The aim is to establish a significant number of small
producers, which will maintain a constant cash flow for its’ ongoing exploration
and development in Cumberland County Kentucky. The Company believes it well
on track to achieve this in the very near future.
Stephen Thomas
Managing Director