The well is expected to spud in mid December 2001.

Longreach Oil Ltd will earn a 10 per cent interest in the joint venture by contributing 13.33% of the dry hole costs of the Carnarvon-1 well. First Australian Resources also wants to participate in the drilling but only if the well spuds before the end of the year. Operator of the joint venture is Empire Oil Company (WA) Ltd.

In other Longreach news, the company has decided not to proceed with its conditional agreement in connection with oil exploration in the onshore Taranaki Basin in New Zealand. "This decision does not reflect the quality of the project, rather the expenditure timetable would have interfered with the company's current exploration program," the company said.