In addition, the company has undertaken mapping in its 100%-held EPA 4/05-6, where it says it has identified several large structures near the Pinnacle Fault that “may host significant accumulations of hydrocarbons, some several times larger than the Stokes Bay prospect”.

Located in EP104, the Stokes Bay prospect is estimated to contain up to 10 million barrels of oil and 80 billion cubic feet of gas.

This prospect and the deeper Valentine prospect – estimated to hold more than 1 trillion cubic feet of gas – have been flagged for drilling by Arc in the second quarter of 2007.

As well as assuming operatorship, Arc also boosted its interest in the permit from 8% to 32.95%.

Aside from Arc and Emerald, which has an 18.75% stake, the other partners in EP 104 are Empire Oil & Gas subsidiary, Gulliver Productions (14.8%), Indigo Oil (5.5%), First Australian Resources (8%), Pancontinental Oil & Gas (10%) and Phoenix Resources (10%).

Back at EPA 4/05-6, Emerald hopes to soon start exploration work on the permit.

“The increased activity in the Canning Basin in the winter of 2007 through the presence of Arc’s Century 18 rig, will sharply reduce the crew equipment mobilisation costs for Emerald to commence exploration on the permit,” the company said.

United States

Outside of Australia, Emerald said it has agreed to take a working interest in two gas/condensate projects in south Texas. More specifically, it will acquire a 15% stake in the Glamour Girl project in Duval County and a 25% stake in the Steamboat Prospect in Jim Hogg County.

Also in Texas, the company said rig delays have meant the drilling of its Kathleen Marie-2 well at the Pandura Project has been pushed back until early January next year.

In North Dakota, Emerald says a 3D seismic survey has been completed at its Greenbush project.