Rawson said this monring it would pay 20% of the well costs to earn a 10% interest in any production licence that results from a commercial discovery.

The Udacha prospect is a Permian oil play that is downdip from and similar to the Sellicks and Christies oil fields.

Rawson executive chairman John Conolly said the farmin would enable Rawson to accelerate its program and participate in wells even earlier than anticipated in its prospectus.

"This will be the first well for Rawson following its IPO and is following the company policy of diversifying exploration risk," Conolly said.

"It also demonstrates that we plan to be an aggressive explorer and to take advantage of the expanding market place and the resultant partnering opportunities. In a vibrant oil and gas market our listing means that we are well-placed to identify and move swiftly when the good opportunities arise. Our growth will be by a combination of successful drilling and sensible asset management."

This is Rawson’s third farmin to a Great Artesian permit. It has also done deals covering the western portion of PEL 107, also in the South Australian portion of the Cooper, and ATP 552P in the Surat Basin, Queensland.

Rawson will begin its exploration program in late October with a soil gas survey in the Appadare Farmin block in the western portion of PEL 107 in the Cooper Basin.

This will enable Rawson to high grade the area and select a prospect for drilling in the first half of 2006. The joint venture has allowed for a drilling slot in this period with rig availability.

Rawson will also drill the Bellbird West well in ATP 552P Surat Basin in Queensland in the first quarter of 2006, where Rawson will earn a 50% interest in the permit by paying 100% of the cost of the well.

These two wells along with the Udacha farmin should result in Rawson participating in three exploration wells in its first six months as a listed company.