Amadeus told the stock exchange that the leasehold area consists of eight wells currently producing a gross average of 180 barrels of oil per day and 190 bcf of gas per day, thereby taking Amadeus' total daily production to around 1000 bopd or $US50,000 a month after costs, according to Amadeus director, Mr Geoff Towner.

The acquisition will also take Amadeus' proven reserves to 2.14 million barrels of oil equivalent with total proven/probable reserves at 4.28 mmboe.

Amadeus said an economic engineering review on the project indicated there was a reserve base of about 1 million bbls with an economic life of 32 years, which was expected to pay out in four years, based on current economics and production.

News of the deal sent Amadeus' shares up 0.5c to 11.5c this afternoon.