The basis of the Moby issue will be 36.88 million ordinary 20c shares, together with 18.44 million 31 December 2004 options and 18.44 million 30 June 2008 options.

Moby plans to drill one well, Moby-1, in the offshore Gippsland Basin prospect to test a structure in which hydrocarbons were encountered in wells drilled a number of years ago, the potential of which has been reconfirmed by 3D seismic imaging.

Following the drilling of this well Moby will hold a 35% working interest in VIC/P47 with Eagle Bay Resources (EBR) maintaining a 25% free carried interest through the drilling and the remainder belonging to private company Bass Strait Oil (BSOC).

As part of the negotiation EBR also successfully negotiated the right for its shareholders to be offered priority in the Moby's issue.

The Ocean Patriot oil rig planned for the well is currently under tow from Cape Town, South Africa, and is expected on site in New Zealand in the first week of September to drill Galleon South-1 for Tap Oil, which has an option to drill a further well.

The timing of Moby-1 depends Tap’s drilling schedule, with current expectations being it will be drilled in early October or November.