This busy program proved highly successful with two commercial discoveries at Nutmeg-1 and Paranta-1, drilled in Great Artesian’s 100% owned PEL106. Both wells were cased and suspended as potential future hydrocarbon producers.

Subsequent seismic data has also confirmed the presence of at least four additional, follow-up, prospective structures in this core area of PEL 106. These are of similar size to the Nutmeg and Paranta structures and they will be pursued with priority in future PEL 106 exploration activity.

An extended production testing of Nutmeg-1 and Paranta-1 wells will commence in late May or early June, with both located within 2km of existing pipelines.

Additionally the company secured a number of innovative farmouts with Beach Petroleum and Enterprise Energy in blocks elsewhere in PEL 106 which will see both drilling and seismic acquisition during the second half of 2004.

Farmins by Beach will see it fully fund the acquisition of 150km of 2D seismic in the “Farmin Block” of PEL 106 and 220 km of 2D seismic in the adjacent PEL 91 during the third-quarter 2004.

A farmin by Enterprise will see it fund 50% of the cost of drilling the Smegsy-1 well in PEL 106 in order to earn a 25% interest in any subsequent production licence following a commercial discovery. If the well is plugged and abandoned Enterprise will retain no residual interest in the Smegsy Block exploration area.

Enterprise will also fund 50% of Great Artesian’s 33.33% of the cost of drilling of the Nulla Nulla-1 well in ATP 549 (West) in August to earn an 8.33% interest in the block.