update

ASX ANNOUNCEMENT AND MEDIA RELEASE
ACTIVITY UPDATE
Highlights
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Senegal – farm-in offers received and under review
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NE Waller – rig due on location for Pitchford #1 well 15 October 2008
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NE Waller - Pitchford #2 expected to follow on from Pitchford #1
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Canning Basin - Stokes Bay well testing planned for October 2008
Offshore Senegal, West Africa (FAR 30%).
During September, a meeting was held by the Joint Venture in the United Kingdom to review the progress of farmout marketing. FAR is pleased to advise that written offers to participate in the drilling of a well from two parties were presented with a third offer pending.
To enable these offers to be fully considered and a farm-in partner or partners chosen to enable the drilling of a well the co-venturers, Senegal Hunt Oil Company (Operator) 60%, FAR 30% and Petrosen (Senegal’s National Oil Company) 10% have requested the current phase of the license be extended by one year. The application for the extension has been based on the following:
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farm in offers have been obtained from industry participants with access to rigs and proven capacity to operate deepwater wells;
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the joint venture has met all their obligations under the first renewal period and have spent US$17 million being twice the minimum amount specified under the Contract;
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in doing so the JV has acquired one of the largest 3D surveys off the northwest coast of Africa covering an area exceeding 2000 square kilometers resulting in a high quality data set that has been processed into a world class seismic volume;
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the work has been accomplished as quickly as possible with due care and attention to detail and resulted in offers being generated.
FAR is seeking to be free carried through the drilling of one well.


NE Waller, Onshore US Gulf Coast (FAR 34%)
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Progress Drilling Rig expected on location for first Frio test well (Pitchford #1) 15 October 2008.
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Black Creek Drilling Rig expected on location following the Pitchford #1 well to drill Yegua test well (Pitchford #2)
The operator, AYCO, has advised a likely spud date for the Pitchford #1 as 15 October 2008. The well, a planned 4500’ Frio test will be drilled on a turnkey basis by Progress Drilling of Luling, Texas utilising a truck mounted rig. Positive results from this drilling will focus attention on the program’s many shallow prospects and leads at Frio level.
The Pitchford #2 well, a planned 7100’ Yegua test, will be drilled by Black Creek Drilling, Inc and is expected to follow the drilling of the Pitchford #1 well.
Surface pipe for the Yegua test as well as production strings for both holes has been secured despite a tight market for these steel based products. Pipeline facilities exist within one mile of the proposed drill locations.
These first two wells have been selected from a large drilling inventory of shallow horizons. Evaluation of deeper horizons, particularly Wilcox and Midcox continues, and plans for a 15,000’+/- test will be presented during the 4th quarter. Details concerning the two prospects selected as early drilling targets follow:
The first is a primary Frio target, F1, at a measured depth of 3,850 feet. Over 440 acres of
closure are mapped at this level. The F1 zone displays a seismic amplitude anomaly believed
to be a gas indicator. The Frio horizon immediately above the primary target, F2, also displays an amplitude anomaly. This location will test the edge of the F2. The well will be drilled to 4,500 feet to evaluate additional potential reservoirs still under closure.
The second prospect is mapped as a counter regionally dipping fault with a significant upthrown structural closure in the Eocene Cockield and Yegua interval. Both horizons are important oil and gas producers in the immediate area. Reservoir quality and thickness are assured at this location. Both sand sequences are regional in deposition and are present in nearby wells.
Stokes Bay Well – Canning Basin, Western Australia (FAR - 8%)
Testing of the Stokes Bay-1 well that was drilled by the Joint Venture in 2007 is planned to resume during October 2008.
The testing will attempt to provide a positive test of the reservoir fluid and character and flow capacity of the cavernous reef system in the Nullara Formation encountered by the Stokes Bay-1 well. With large mud losses in the Stokes Bay-1 well, the reservoir potential and fluid character was not positively defined during the 2007 drilling program.
Interpretation of the pressure data obtained during and after the drilling of the Stokes Bay-1 well, indicated a reservoir pressure of up to 140psi above the regional water gradient which could be indicative of a hydrocarbon column, although other interpretations are possible. This anomalous pressure is from a zone over 80 metres higher than a 0.134 mmcfd gas flow with some minor oil shows in Point Torment-1, 4.5 kms to the south east.

This trend could also extend up to 3kms to the north west of the well where the Pinnacle Fault curves to the west. For the trap to be effective, the Nullara trend must also be stratigraphically trapped updip to the north east by either tight limestones or lagoonal shales. If there is closure of the cavernous trend around the well it is possibly in order of some 7 km2, based on current seismic mapping, but being a stratigraphic feature, it could extend over a much larger area.
A 40 to 45 metre intersection of the Nullara limestone has been drilled to date in Stokes Bay-1. Buru (the Operator) interprets areal closure has the potential to be up to 17 km2.