Perth-based First Australian yesterday said it had purchased the 10% working interest in the West Andrews Prospect located on a 400-acre (905-hectare) lease block in Vermillion Parish, South Louisiana.

The prospect was supported by subsurface well control and 3D seismic data, and was ontrend with the prolific Camerina formation that had produced over 1.7 trillion cubic feet of gas.

The Lucy B. Thomas-1 well is scheduled to evaluate the three-way dip fault closure and is likely to spud before November. It is expected to take about 48 days to reach the planned total depth of 14,000 feet (4281m).

First Australian said sand maps of the area showed the West Andrew Prospect could have about 60ft of pay in the Camerina-1 sands and 40ft in the Camerina-2 sands, with total potential reserves estimated at 20 billion cubic feet of gas and 200,000 barrels of oil.

Existing nearby infrastructure provided for quick sales turnaround in the event of a successful well, with possible production exceeding 7 million cubic feet per day.

“This onshore South Louisiana project represents an attractive opportunity with multiple drilling objectives in a prolific trend, adjacent to production and has potential for early sales,” executive chairman Michael Evans said.

Houston’s Sandalwood Exploration is operator of the project and other North American participants include the Reeder Energy group, which participated with First Australian in other joint ventures. First Australian’s working interest will reduce to 7.5% after casing point has been reached in the well.

First Australian also reported that the Todco Rig 57 had been delayed and was now expected to arrive next week in the Redfish Reef Area of Galveston Bay State Tract 135, offshore Gulf of Mexico, to drill the ST135S-1 well, in which the company has a 12.5% working interest (reducing to 9.375% after payout).

That prospect is adjacent to, and across a saddle from, the existing Smith Point Field, which has cumulative production of 6 million bbl of oil and 42Bcf of gas from multiple wells and multiple Frio Sands.

First Australian said it was attracted to this opportunity, given the relatively low risk associated with the prospect, the multiple Frio Sand targets, the quality technical control, the attractive indicated profitability (for only one or two sands from a possible six), the nearby platform facility, and the potential for near-term production.

Operator of the ST135S-1 well is Genesis Production of Houston, with all other participants being North American entities.

First Australian also said progress had been made in a lease acquisition program, in which it had a 34% working interest, in an onshore Texas Gulf Coast exploration opportunity. The operator had signed up 10,194 gross and 7404 net acres and was advancing arrangements for permitting and seismic data acquisition.

The area to be evaluated by a 3D seismic survey is on depositional strike with several nearby fields that had produced over 250Bcf of gas and more than 30MMbbl of liquids, with most of the sands being condensate rich.

Prospect generation is likely to be completed during the last quarter of 2006, with primary drilling objectives being prolific Eocene-aged sands in structural traps. Additional objectives are productive Miocene, Oligocene and Upper Eocene sands. A nearby ontrend field has produced almost 30MMbbl of liquids and 20Bcf of gas from these shallow sands.

Lastly, First Australian said a coiled tubing unit had arrived on location to resume production testing at the Kakwa exploration well, onshore Alberta, Canada.

The well is located on Suncor acreage in the Kakwa area on the flank of the Peace River Arch. The test will evaluate the deep Wabamun formation and, providing testing is successful, the well will be completed for production.