Following this latest acquisition, Amadeus forecast its 2006 oil production would increase 120% and gas by 375% from this year.

The company said the leases, purchased from White Eagles Resources Corp for US$58.5 million, also included significant upside potential.

Amadeus will earn its 85% interest by funding 95% (US$55.6 million) of the deal, to be raised from a bank loan and placement of 23 million ordinary shares. Full details of the share purchase plan will be made available next Tuesday.

The company claimed the properties were currently producing 740 barrels of oil equivalent per day, and the 113 leases contained 300 producing wells across 16 counties, covering 18,240 acres. They have a cumulative production history of 72 million barrels of oil and 4.4 billion cubic feet of gas, according to Amadeus.

The estimate of “significant” upside potential is based on 16 3D seismic projects shot on 32 of the leases, from which White Eagle identified 50 prospects. Fifteen of the 18 drilled prospects proved economically successful, Amadeus said.

“There is potential for similar 'attic' oil in the other 81 leases (about13,000 acres) which have not yet been shot with 3-D seismic,” Amadeus executive director, Caroline Bentley said.

“Based on results to date, the additional 3D coverage, which Amadeus will undertake during the current financial year, could add another 124 locations. No value was assigned for this potential in the purchase price.”

TNT Engineering - Amadeus’ managing operator based in Wichita Falls, Texas - will take the remaining 15% working interest in the project.

Amadeus has reported two previous oil and gas acquisitions costing a total of US$31.6 million in the USA in the past three months – the Shackelford/Stephens County deal and the Ford East Project.

Since acquiring the Ford East project in July, production has already increased through the successful drilling of five consecutive wells, said the company.