Three farmin areas – the Aspen, South Candra and Turban blocks – are adjacent to the Flax-Juniper complex where substantial oil and gas resources are indicated.

By contributing to the cost of the Aspen-1 well, Avery will earn a 25% interest in the Aspen Block, a 55 square kilometre area in the south-eastern part of PEL 103.

On a nearby culmination, the Cummin-1 well was drilled in 2004 and had strong oil shows in Jurassic and Triassic sandstones, the main oil reservoirs in the region. The Aspen prospect is a large culmination centrally placed on the regional Innamincka High feature.

By contributing to the cost of two wells, Avery will earn a 25% interest in the South Candra Block, a 46 square kilometre area in the north-eastern part of PEL 103. The block includes the southern part of the Candra Dome feature and its southern flank. The Candra Dome hosts the Acrasia and Reg Sprigg oil fields, both within five kilometres of the South Candra Block boundary.

By contributing to the cost of a 3D seismic survey, Avery will earn a 35% interest in the Turban Block, a 46 square kilometre area in the eastern part of PEL 103.

The block encompasses a large part of the northwestern flank of the regional Innamincka High feature, updip from the Juniper oil and gas accumulation.

“The three wells in the South Candra and Aspen blocks are scheduled for drilling in the fourth quarter of this year and will largely fulfil the annual work commitment for PEL 103,” Innamincka said.

“The 3D seismic survey is planned for 2006 and aims to identify drilling targets in the broad area updip from the Juniper oil and gas accumulation. All three farmin blocks are considered to have exploration follow-up potential in a variety of plays.

“The farmins will allow the PEL 103 Joint Venture to continue the focus in evaluating the Flax-Juniper complex.”

Avery Resources (Australia) Pty Ltd is a subsidiary of Avery Resources Inc. which is an international oil and gas exploration company based in Calgary, Alberta that trades on the TSX Venture Exchange.

Upon completion of its earning obligations, the respective participating interests in the farmin blocks will be:

Aspen and South Candra: Innamincka Petroleum (operator) 26.25%, Vernon E Faulconer Australia Inc 48.75% and Avery Resources (Australia) Pty Ltd 25%.

Turban Innamincka (operator) 22.75%, Vernon E Faulconer Australia 42.25% and

Avery Resources (Australia) 35%.