CALGARY, July 9 /CNW/ - Avery Resources Inc. (TSX: ARY) ("Avery" or "the
Company") today provided an update on its operations in India and Australia.
Avery's wholly owned subsidiary, Bengal Energy International Inc.
("Bengal"), along with its two joint bidding partners, has received the
Seventh New Exploration Licensing Policy ("NELP VII") provisional award of
Block CY-ONN-2005/1 (the "Block"). The Block is a 946 square kilometer
(233,761 acre) land block located in the Cauvery Basin, a Category 1 proven
producing basin in southeast India. Avery has a 30% interest in the Block. The
operator of the Block, GAIL (India) Limited ("GAIL"), holds a 40% interest and
Gujarat State Petroleum Corporation ("GSPC") holds a 30% interest. NELP VII
bids closed on June 30 and the formal award of blocks is expected by the end
of August, after verification of data in the submitted bid documents. The
formal government signing ceremony is expected to take place by the end of
The bidding process featured 57 blocks - 28 offshore and 29 on land.
There were 181 bids in total from 75 Indian and 21 foreign companies. Of the
21 foreign firms, only four, including Bengal, were successful.
"The NELP VII provisional award is a tremendous accomplishment for us,"
said Bradley Johnson, Chief Executive Officer of Avery. "We believe the Block
may contain over four times the potential resources of all of the Company's
existing on-shore and off-shore interests. As well, we have strengthened
relationships with some very large key players in India, and we believe we can
add value for them by applying our strong technical and operational
experience, as well as our access to Canadian practices and technologies, not
only to the Block, but also to other oil and gas properties that they own and
Avery has established two valuable alliances through the NELP VII bidding
process. GAIL controls 78% of India's gas infrastructure and has interests in
27 oil and gas and three coal bed methane (CBM) blocks in India, operational
presence in China, Egypt, Oman and other countries, and interests in liquid
natural gas (LNG) facilities. GSPC has interests in 42 oil and gas blocks in
India, interests in oil and gas blocks in Yemen, Egypt and Australia, and
jointly developed the Hazira oil and gas field with Niko Resources.
Total budgeted capital expenditures for the exploration of the Block over
the seven-year exploration period are US$18.1 million, of which Bengal will be
responsible for 30% (US$5.4 million). In the initial four year phase, Bengal
and its partners intend to undertake 2,000 kilometers of airborne magnetometry
(aeromag) survey, reprocess 1,000 kilometers of 2D seismic survey, shoot 500
square kilometers of 3D seismic survey and 75 square kilometers of high
resolution 3D seismic survey on three key prospects, and drill three wells. A
minimum of one well is planned in the final three year phase.
Avery's focus on India is driven by several key factors. India is a net
importer of oil and gas, producing only 25% of its petroleum requirements, and
is the world's fourth largest consumer of energy. As a Commonwealth country
and the world's largest democracy, it has a long-established history of
British common law and an attractive fiscal environment. NELP bidding rounds
are generally held every year, and over the last six years some of the world's
largest oil and gas discoveries have been made in India.
In Australia, the second well in a seven-well drilling program with its
Australian joint venture partner Santos Ltd. commenced drilling on July 7.
This well was originally planned for mid-June, but was delayed due to heavy
rains and resultant road damage. In addition, the Subzero-1 well (Avery 35%
Working Interest) operated by Stuart Petroleum Limited will be plugged and
suspended. Based on well logs and pressure data two thick tight gas zones in
the Patchawarra sands are believed to hold potential in the well. The
operation as planned will enable a subsequent completion and stimulation
attempt and/or the potential to side track to a more optimally located
structural position to fully evaluate the upside potential of this play.
Avery Resources is an international junior oil and gas exploration and
production company based in Calgary, Alberta. The Company is committed to
growing shareholder value through international exploration, production and
acquisitions. Avery trades on the TSX under the symbol ARY.
Except for statements of historical fact, all statements in this press
release, without limitation, regarding new projects, acquisitions, and 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.
For further information:
For further information: Avery Resources Inc., Bradley Johnson, Chief
Executive Officer, Chayan Chakrabarty, President, (403) 205-2526, Email:
email@example.com, Website: www.averyresources.com