The company committed to field work and development and has now been forced to call a general meeting of the shareholders (30th September) seeking approval for an issue of 14 million shares at 12 cents per share and 20 redeemable convertible notes with a face value of $50,000 each to raise $2.68m finance for the project.

The venture's first discovery at Sellicks' in July 2002 was followed by the Christies discovery in July 2003. The next well is Brighton, also located within PEL92.

The partners have agreed to fast track development of Christies, which will entail the acquisition of 3D seismic followed by the high probability of drilling two or three development wells which may result in Christies producing up to 1,000bopd.

The Christies result has also increased the possibility of a pipeline being laid to link Christies and Sellicks to the Tantanna to Moomba pipeline, cutting a significant amount from transport costs.

This, together with Brighton becoming an extra well in the program, has made it necessary for the company to source further capital.

The partners have also planned to carry out a re-completion of the Sellicks well to lift production beyond 800bopd, if possible.