Entek yesterday said the well – in State Lease M-106410, Block 24-L S/2 SW/4 – would be drilled to a target depth of about 4326m subsea and would take about 40 days to drill.

In April, Entek said it was paying about $US52,000 ($A69,000) for a 20% stake in the lease operated by an unnamed but prominent and experienced Gulf of Mexico-focused company, which owned the other 80% of the lease. Entek said the tract consisted of 720 acres (291 hectares) located about 10 miles (16km) offshore in 37 feet (11.3m) of water.

Entek said this purchase further demonstrated its intentions to seek participation in low-risk oil and gas targets in the shallow waters of the Gulf and followed on from the February farm-in to Gulf of Mexico properties, South Marsh 138 and South Marsh 152.

Yesterday, however, Entek said it was farming out its 20% interest in Block 24-L S/2 SW/4 to unnamed US-based independents for a “free carry” in the well, but that it would retain a 5% working interest before royalty burden.

Company chairman Russell Brimage said Entek remained committed to increasing its interest and activity in the Gulf of Mexico and was rapidly assembling a portfolio of interests in Gulf acreage with exciting low-risk exploration targets for drilling in 2006 and 2007.

Further announcements on the Block 24-L S/2 SW/4 well would be issued during drilling.