The two wells are located approximately one mile apart, testing two separate plays in the Midcox producing trend, five miles south of Halletsville, in Lavaca County, Texas.

Both wells have potential for reserves in the range of 5-10 billion cubic feet of gas per well, with Scheinemann South being a two-well play and Gerdes expected to require 2-3 wells for development, in the event of success.

The Midcox formation in the immediate vicinity of these two wells, has demonstrated reserves of up to 20 billion cubic feet of gas and 500,000 barrels of oil per well, from overpressured channels and point bars, at depths on the range of 9,500 - 11,000 feet. At current oil and gas prices, each such well has the potential to yield over $US75 million in future operating revenue, during the course of its life.

The three closest such wells, all of which are within two miles of the current drilling activity, have now been on production for over 26 years and appear to have at least 5-10 years of remaining reserve life.

Amadeus is funding three separate programs of prospect development in the Midcox trend, all of which are based on the use of detailed geology and 3D seismic data to try to delineate the objective gas-bearing sands.

In addition to the Scheinemann South and Gerdes prospects, a further 6-8 prospects have been identified. The program will see at least two more exploration wells drilled during the balance of the year.

Given some level of early commercial success, it is anticipated that the program will last for at least 3-5 years and will be one of the cornerstones of the company's US exploration and development program for the medium term future.

Amadeus' working interest is 25%, with potential to increase this in the event of success.