FAR expects to start drilling its Eagle North-1 well in the San Joaquin Basin in early November. The well is about 1200 metres northwest of 2001’s Eagle-1 and has a planned total depth of 4200 metres, said FAR.

“After logging, provided the presence of oil in the target Gatchell sandstones is confirmed, the well will be cased and production tested for five days,” said executive Chairman Michael Evans.

“Following a successful test the well will then be plugged back to drill a side track horizontal lateral within the reservoir for a distance of 300 metres, which will then be completed for oil and gas production.”

He added that economic completion of the well would trigger an immediate 129 km2 3D seismic survey for planning of up to nine, 900-metre long in-situ horizontal wells in the reservoir to drain the field over a 15-year production period.

FAR said the Eagle Project contained a potential 13.48 million barrels of oil and 25.18 billion cubic feet of gas.

Current Eagle Oil Pool participants are: operator Victoria Petroleum (farming down from a 56.1% interest), Sun Resources NL (10%), FAR (15%), Lakes Oil NL (15%) and US private interests (3.9%).

Meanwhile, FAR said in south Louisiana its joint venture partners were seeking rigs to expand its Tete Project leases in Iberville Parish. Permits have been issued and location building has been completed for the drilling of the Schwing A-1 well – a planned 3551-metre test of the Upthrown Bolmex section of the South Grosse Tete Prospect. It contains an estimated potential of between three and five million barrels of oil, said the company.

“The Schwing well will comprise the first phase of a three year program designed to evaluate additional deeper seismically defined objectives – now referred to as the Baist 29-1 Prospect – at the Nonion Struma, Nodosaria and Deep Wilcox intervals,” Evans said.

“Subject to a successful exploration outcome, a prospect of this magnitude has the potential to make a significant impact on FAR’s reserve and production base, particularly given prevailing energy prices.”

FAR’s interest will reduce to 12.75 percent once cost recovery has been achieved on a project basis, while Amadeus Energy has reported a 50% working interest in the project.

Meanwhile, back in Texas, FAR said it had secured a workover rig for its Rainosek Project in Lavacca County.

With a 21.57% interest in the project, FAR reported the unit would perform an uphole completion of the existing Rainosek-1 wellbore in a series of potential Wilcox pay zones, expected to start in six to eight weeks.

Also in Texas, frac operations have begun on the Vaquero-2 well, said FAR, which has a 9% working interest.

The Vaquero-1 and 2 wells operated by Dune Energy are on an area of mutual interest comprising 1000 acres of the Welder Ranch lease in Victoria County, South Texas.

FAR has also undertaken a 11.375% farm-in to the drilling of the Loveless F-2 oil well in Hardeman County, Texas, said the company on Friday.

With a Paterson rig booked from the middle to the end of this month, FAR said the joint venture would drill the well 422 metres northwest of Loveless F-1, which has produced 897,103 barrels of oil and 837 million cubic feet of gas since it was drilled in 1990.

As this well is now a poor producer – 30 to 38 barrels of oil per day with associated water – a discovery at F-2 means F-1 would become shut-in. F-2 is aimed at intersecting the 18-metre high Chappel formation and recovering the remaining oil above the F-1 well, said FAR.

The company also announced that following the installation of a pump at the Loveless ‘E’ well, which was drilled in 1990, production has increased from 21 barrels of oil per day to 34bopd with associated water.

In its 15-year history, FAR said Loveless ‘E’ had produced about 1.1 million barrels of oil and 1BCF of gas, making it one of the most successful wells in the US program. The company has a 16.25% interest in the project.

Evans said the company believed the USA, particularly the gulf coast area, was the key to building a production and reserve base.

He added that FAR has issued expression of interest letters on three exploration projects and one possible production acquisition all located in South Louisiana.