The agreement with Matris will kick off Orchard's 2004 calendar year drilling campaign, encompassing the drilling of a minimum of six exploration wells.
Orchard, Matris and NEG's technical teams have ranked the Forbes Gas Play's prospects based on an extensive review and assessment of available 3D seismic data.
Once the relevant acreage has been leased, a well will be drilled on the Forbes prospect, subject to rig availability and weather conditions.
Orchard's independent technical consultant believes that within the targeted area there are multiple prospects with pre-drilling estimates of reserves ranging from 1bcf to 100bcf of gas with several high impact prospects at the top of this range.
Orchard's dry hole cost for the first well is estimated to be $US100,000 for a 50% working interest in the well.
The targeted acreage lies adjacent to areas where NEG and associated companies have achieved an 80% drilling success rate.
Orchard director Stephen Warrener said, "This represents an important step in Orchard's corporate development as the Forbes gas play is a proven geological play with excellent exploratory success."
