Success with this well will result in five producing gas/oil wells in the field with a forward program of three additional wells into proven undeveloped reserves, the Canadian-based company said today.

The first of the three additional wells is expected to be drilled later this year and drilling on the remaining two wells is planned for 2007.

Fall River, which is listed on the Australian Stock Exchange and the Canadian TSX Venture Exchange, said the Sprowl Gas Field had an anticipated field life in excess of 40 years.

The drilling program for the current well proposes drilling into the Middleburg Amber trend, which produces primarily from Red Fork fluvial channel sandstones.

Net pays are in the order of 40-80 feet (12.2-24.4m) thick with a drilling depth of around 10,000 ft.

Fall River and its joint venture partners have identified four additional field margin locations to be considered for drilling into both probable and possible reserves in the field. These locations will be assessed more fully upon completion of the current drilling program.

Production data from the current four wells is being collated and assessed in conjunction with operator Kaiser Francis and Fall River’s JV partners.

Cash flow to Fall River from the current producing wells, including anticipated cash flow from the wells proposed to be drilled this year, is expected to be about $A1.4 million over the 12-month period.

Fall River Resources holds a 20% interest in the Sprowl Gas Field.