offshore gulf coast announcement.

OFFSHORE GULF COAST WELL
Drilling Permits have been issued, a location staked and pilings are being driven in
preparation for Todco Rig 57 currently scheduled to arrive in the Redfish Reef Area of
Galveston Bay State Tract 135, offshore Gulf of Mexico, between 11th and 15th of July 2006.
The ST135S #1 well, in which FAR has a 12.5% working interest (reducing to 9.375% after
payout), has a planned total depth of 9,900 feet and will test a multiple Frio Sand Prospect
supported and defined by 3-D Seismic and subsurface data. Planned drilling duration is
approximately 12 days.
The Prospect is adjacent to and across a saddle from the existing Smith Point Field that has
cumulative production of 6 million barrels of oil and 42 BCF of gas from multiple wells and
multiple normally pressured Frio Sands (from F-2 through the F-15 Sand). Three drilling
locations have been identified by Seismic mapping.
Portion of the play lies within the northeast half of Galveston Bay State Tract 135 where FAR
recently submitted the winning bid (US$169,500) with Genesis Production Co and others to
secure protective acreage now aggregating 640 acres offshore Gulf of Mexico.
An existing platform facility lies within 3 miles of the proposed location enabling use of spare
tankage for temporary flow through with favourable processing fees. From here gas and oil
may be pipelined to shore where gas goes into a trunk line and oil is trucked from a tank
facility.
FAR was attracted to this opportunity given the relatively low risk associated with the
prospect, the multiple Frio Sand targets, the quality technical control, the attractive indicated
profitability (for only one or two sands from a possible 6), the nearby platform facility and the
potential for near term production.
The Operator is Genesis Production Co of Houston, Texas. All other participants are North
American entities.
Commenting on its US activities, executive Chairman Michael Evans said that:
“This offshore Gulf Coast project represents a ground floor opportunity with multiple
drilling objectives and potential for near term production and follows our winning bid for
acreage offshore gulf of Mexico. This is one of a number of initiatives now in progress likely
to further improve FAR’s growing reserve and production profile.”
For information on FAR’s drilling activities visit our website at www.far.com.au