The agreement involves Oilex and India’s Videocon Industries and state-owned Gujarat State Petroleum farming-in to Great Artesian’s Otway Basin permit EPP 27.

Under the new deal, both Indian companies and Oilex would be entitled to each earn a 20% interest in EPP 27 by sharing the cost of a $A2 million 2D seismic program and drilling one exploration well. Great Artesian would keep the remaining 40% interest in the permit.

Great Artesian told the ASX this morning that the seismic acquisition was due to start in May or June, while the well was expected to be drilled during late 2006 or 2007, subject to government approvals and rig availability.

In December, Great Artesian advised that due to the unavailability of a suitable drilling rig, it had requested the Commonwealth-South Australia Offshore Petroleum Joint Authority suspend EPP 27 for up to 12 months. Having received approval, the current exploration phase is now due to end on February 21 next year.