The company yesterday said the program would enable a large drilling inventory to be established, particularly in the Beach Petroleum farm-in block and Energy Investments farm-in block portions of PEL 106.

It will focus on the western rim of the Patchawarra Trough and aid in the delineation of potentially large stratigraphic gas/condensate traps in a geological setting similar to the Raven gas field.

Great Artesian said this would include 3D coverage across the recent Udacha and Middleton gas/condensate discoveries to enable the company to plan for future development of these fields.

The company said the estimated $8 million survey, covering about 500 square kilometres of parts of PEL 106 and 91, would largely be funded by Beach and Energy Investments, as part of their respective farm-in obligations.

Some of the Spinel 3D survey will provide coverage across the Middleton, Udacha, Paprika, Rossco, and Smegsy fields in accordance with various joint venture arrangements, it said.

Beach will then have a commitment to fully fund two exploration wells and Energy Investments between one and four exploration wells, in their respective blocks, with drilling expected in the later half of 2007.

Great Artesian will retain a 50% interest in both farm-in blocks.

The survey is expected to take around four months to complete.

The company said the program would complement its oil-focused exploration program in PEL 91, immediately to the west.

“Interpretation of the recently acquired 325km 2D Cadulus seismic survey is expected to confirm up to 20 targets located in the highly prospective oil-prone fairway extending from Christies and Callawonga oil fields in PEL 92, northeastwards to Victoria Petroleum’s Growler-1 oil discovery in PEL 104,” Great Artesian said.

A multiple exploration well drilling program is expected to begin during the second quarter of 2007, the company said.