Covering an area of about 500 square kilometres in portions of PELs 106 and 91, it is the largest exploration 3D seismic program ever undertaken in this region of the Cooper Basin.

“The Spinel 3D survey will provide an extremely valuable data-set to explore for significant gas/condensate and oil accumulations in sand bodies flanking the western rim of the Patchawarra Trough,” managing director Ray Shaw said.

It will also provide control for future development plans for the Middleton, Udacha, Paprika, Smegsy, and Rossco gas discoveries.

“The importance of this data-set to Great Artesian’s ongoing exploration and development for years to come in this region cannot be understated,” Shaw said.

The company said Beach and Energy Investments, as part of their respective farm-in obligations, would largely fund the $7.6 million survey.

Processing and interpretation is expected to take about five-to-six months after field acquisition is finalised around mid-April.

Great Artesian said after interpretation, between three and six exploration wells will be initially drilled in the Spinel 3D survey footprint, all fully funded by farminees.

Beach will fully fund two exploration wells in the Beach Farmin Block portion of PEL 106, following which it will have earned a 50% participating interest.

In the Spinel Block portion of PEL 106, Energy Investments will fully fund between one and four exploration wells, the latter of which will result in the company earning a 50% participating interest in the block.

Great Artesian will retain 50% interest in both blocks.

The company said the program would complement its oil-focused exploration program in PEL 91, immediately to the west.

“Interpretation of the recently acquired 325km 2D Cadulus seismic survey is expected to confirm up to 20 targets located in the highly prospective oil-prone fairway extending from Christies and Callawonga oil fields in PEL 92, north-eastwards to Victoria Petroleum’s Growler-1 oil discovery in PEL 104,” it said.

A multiple exploration well drilling program is expected to begin in mid-2007.