Speaking yesterday at the 2007 Paydirt South Australian Resources and Energy Investment conference in Adelaide, Eden chairman Greg Solomon said the company’s adjacent PELA 183 and adjoining PELA 240 tenements were “interesting hydrocarbon plays”.

“This is a conceptual exploration focus, as both of these tenements north of Olympic Dam and Andamooka are in Proterozoic rocks,” Solomon said.

“There has previously not been any successful oil and gas exploration in such structures anywhere in Australia, although there are a number of similar, successful projects in other countries.

“Yet a seismic survey by Geoscience Australia revealed, on our examination, several standout anticlines, which have never been tested for hydrocarbons.

“We are close to concluding negotiations with native titleholders and expect to be drilling by the end of this year.”

Solomon said any commercial oil or gas discovery on either of the licence application areas, which are only 60km north of BHP Billiton’s huge, energy-hungry Olympic Dam mine, would “significantly change the economics” of the expanding number of mining projects in the region.

“These projects would have for the first time, a ready local fuel supply source that could contribute positively to feasibility studies for future mines in the province,” he said.