Avery has the opportunity to drill up to five wells and acquire 100km of seismic data to earn up to 50% direct working interest in the Barta and Wompi blocks in Queensland permit ATP 752P, Bow said this morning.

Bow will be carried through five exploration wells and the 100km seismic program if the farmin is completed.

Avery recently farmed into South Australian Cooper Basin permit PEL 103, operated by Innamincka Petroleum. It also has a 10% stake in Timor Sea permit ACP 24 where the Katandra oil discovery was made last December.

In ATP 752P, Avery will pay an option fee of $A300,000 to be spent on seismic reprocessing and technical work as required to confirm drilling prospects.

The company has until December 31 2005 to exercise its option to acquire 100km of seismic data and drill three exploration wells to earn 30% equity in the blocks, according to Bow managing director Ron Prefontaine.

“Avery’s aggressive exploration farmin program in the Barta and Wompi blocks in the Cooper-Eromanga Basin in Queensland demonstrates their recognition of the excellent oil prospectivity of the area,” Prefontaine said.

“This is due to the blocks’ location adjacent to commercial oil fields and infrastructure in the Cooper-Eromanga Basin, and the 18 prospects and leads identified to date in the blocks, which have an estimated total recoverable oil potential in excess of 100 million barrels.”

Avery’s aggressive drilling program increases the chances for commercial oil discoveries by five times compared to Bow’s original program, according to Prefontaine. The Avery farmin also frees up capital previously budgeted by Bow for ATP 752P to be used to explore for oil elsewhere.

Bow is currently acquiring 100% of Ocellaris Oil Pty Ltd and will transfer some of Bow’s equity in ATP 752P and other Cooper-Eromanga Basin blocks to Ocellaris once the transaction is completed.

On completion of the Avery farmin, Bow and Ocellaris will retain a combined total of 25% direct working interest in the permit. Operator Victoria Petroleum will also have 25%, with Avery holding the remainder.

ATP 752P is to be granted following a successful conclusion of a right to negotiate agreement with traditional owners. Assuming agreement can be reached quickly, drilling in ATP 752P could begin in the first half of next year, according to Bow.