The company had shipped the mobile rig to Turkey for its 2003 and on-going drilling programs after it had been stacked unused in Perth for 2(1/2) years, as it is not capable of drilling the deep Whicher Range-5 well.

Although there is no shortage of drilling rigs in Turkey, almost all are large deep-hole rigs, which are slow to move and are not cost effective for most of the wells that Amity has drilled, or intends to drill.

However, with the costs and administration necessary to manage and staff a drilling rig in Turkey, with a different culture and significantly different regulatory system to Australia, Amity decided to negotiate the sale of the rig to the Turkish drilling company, Dynamic Drilling.

The sale price is $3.6 million, to be repaid over 3(1/2) years or earlier as agreed by the parties. Amity intends to apply the funds from the sale to advance its exploration and production programs in Turkey.