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The Directors of Oil Basins Limited (OBL, ASX codes OBL, OBLOA and OBLOB, or the Company) are pleased to make the following ASX announcement relating to the commencement of drilling operations at Backreef-1, Backreef Area Canning Basin, onshore Western Australia (WA):
1. Early on 11 October 2010, the Hunt Energy and Mineral Co. Rig 3 (Hunt Energy Rig 3) rig-up was complete and all systems were tested and commissioned.
2. Following the Pre-spud Meeting, the Backreef-1 well was spudded at 2:30pm WST 11 October 2010.
3. As at 6:00am WST 12 October Backreef-1 was at a depth of 204m RT and drilling ahead in the Noonkanbah Formation with a 311mm (12-1/4 inch) diameter hole to 650m RT. No coals were observed in the Liveringa Formation.
4. The updated Backreef-1 time versus depth curve is attached (Figure 1).
In accordance with ASX Listing Rules, during the conduct of Backreef-1 drilling operations, OBL will advise the market weekly (on Thursdays), or after concluding an important well drilling operation and/or obtaining an important assessment or result.
By funding 100% of the drilling and completion costs of Backreef-1, OBL is earning upto 90% of Backreef-1 and the Backreef Area.