Great Artesian: two farmin agreements for PEL 10612:38,...

Great Artesian: two farmin agreements for PEL 106
12:38, Thursday, 1 June 2006

Sydney - Thursday - June 1: (RWE Aust Business News) - Great
Artesian Oil and Gas Ltd (ASX:GOG) and Kompliment Pty Ltd - a subsidiary
of Energy Investments Ltd (ASX:EIV) - have entered into two farmin
agreements which will see a significant boost to exploration within Great
Artesian's PEL 106.
In the first farmin agreement EIV will participate in the
drilling of Paprika-1 well in PEL 106.
In return EIV will obtain a 37.5 per cent participating interest
in any subsequent production licence resulting from a commercial
discovery by that well and will get an exclusive right to explore within
the Spinel Farmin Block, the subject of the second farmin agreement.
Paprika-1 will target a fault related structural trap on the
western flank of the Patchawarra Trough in PEL 106.
The Paprika Prospect is located in a geological setting similar
to that containing the 80 BCF Raven Gas Field and the Middleton
structure, located some 15 kms to the south.
The second farmin agreement relates to the Spinel Block, which
comprises a 360 sq kms portion of PEL 106.
Coupled with EIV's participation in the adjoining Paranta Block,
the Spinel farmin will give it access to 450 sq kms of 3D seismic
coverage in an area which is increasingly being recognised as having the
potential to accommodate Raven Gas Field "look-a-likes", immediately to
the north and east of an area where Beach Petroleum last week signed a
farmin agreement with Great Artesian to undertake 3D seismic acquisition
and fund three exploration wells.
The combined committed expenditure by Energy Investments for both
farmins amounts to between $7.1 million and $7.4 million, and if all
options are fully exercised represent a total of $13 million to $14
million, of which Great Artesian will have a 50 per cent carried
interest.
Shares of Great Artesian slipped 0.5c to 32c today while those of
Energy Investments were unchanged at 19c.
ENDS

Copyright © 2006 RWE Australian Business News. All rights reserved