Avery Resources Follows Up Santos Letter of Intent with Formal Joint Exploration and Development Agreement

    CALGARY, Oct. 17 /CNW/ - Avery Resources Inc. (TSX-V: ARY) ("Avery" or
"the Company") is pleased to announce that, further to its press release of
August 27, 2007 wherein a Letter of Intent with Santos Ltd. (ASX: STO, NASDAQ:  
STOSY) ("Santos") was announced, Avery has entered into a formal agreement
with Santos to jointly explore and develop the Barta Block (631,000 acres) and
the Wompi Block (222,000 acres) in the Queensland sector of Australia's Cooper
Basin. The initiative involves a capital program of up to A$18.5 million
($16.3 million) to complete 300 square kilometres of 3D seismic surveys and to
drill up to seven wells over the next 18 months. Avery will be responsible for
A$4.4 million ($3.9 million) of the full program, which it will fund from its
current cash position, with the remaining A$14.1 million ($12.4 million)
funded by Santos. As a result, Avery will have earned a 30 percent interest in
the Wompi Block and a 25% interest in the Barta Block, with Santos earning 40%
and 45% interests respectively. Avery's current partners in the blocks, Bow
Energy Limited and Victoria Petroleum Limited, will be entitled to the
remaining interests.
    "This agreement with Santos, a major Australian oil and gas exploration
and production company, will enhance our Cooper Basin exploration and
development program while reducing the risk of unsuccessful wells," said David
Little, CEO of Avery. "We believe that Santos' application of large 3D seismic
programs and their proven track record of finding and developing commercial
discoveries in the Cooper Basin will greatly improve our success rate and add
value for our shareholders going forward."
    The Barta and Wompi Blocks are adjacent to lands held by Santos which are
the subject of an accelerated exploration and development program being
undertaken as part of the Santos Cooper Oil Project.

    About Avery

    Avery Resources is an international junior oil and gas exploration
company based in Calgary, Alberta that trades on the TSX Venture Exchange
under the symbol ARY. It is committed to growing shareholder value through
international acquisitions and exploration. Avery's primary interest is in
Australia, where it is building a significant presence through partnerships,
drilling and acquisitions. Avery has plans to drill up to ten wells over the
next year.

    Forward looking statements: Except for statements of historical fact, all
statements in this press release, without limitation, regarding new projects,
acquisitions, future plans and objectives are forward-looking statements which
involve risks and uncertainties. There can be no assurance that such
statements will prove to be accurate; actual results and future events could
differ materially from those anticipated in such statements.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    %SEDAR: 00003559E

For further information:

For further information: Avery Resources Inc., David Little, Chairman &
CEO; Richard Edgar, President; John Carruthers, Executive Vice President;
(403) 205-2526, Email: info@averyresources.com, Website:
www.averyresources.com; Bryan Mills Iradesso, Ken Wetherell, Investor
Relations, (403) 503-0144 x224, Email: kwetherell@bmir.com

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