Avery Resources Signs Cooper Basin Agreement with Santos



    CALGARY, Aug. 27 /CNW/ - Avery Resources Inc. (Avery) (TSX-V: ARY) is
pleased to announce that it has entered into a Letter of Intent, to be
followed by a formal agreement, with Santos Ltd (Santos) whereby Avery and
Santos will jointly explore and develop, subject to certain terms and
conditions, two of Avery's large land blocks in the Cooper Basin of
Queensland, Australia. The blocks are currently held by Avery and its partners
Bow Energy Limited and Victoria Petroleum Limited (Partners). The lands are
located on the oily rim of the Basin and consist of the Barta Block and the
Wompi Block containing 631,000 acres and 222,000 acres respectively. The Barta
and Wompi Blocks are adjacent to lands held by Santos which are the subject of
the Santos Cooper Oil Project (COP). COP is the largest and most comprehensive
Australian Exploration and Development Program ever undertaken consisting of a
capital expenditure program in excess of $1.3 Billion and incorporating large
3D seismic surveys and large scale drilling programs (1,000 wells). The
program to date has an overall success ratio including new pool discoveries,
development wells and satellite pool discoveries of approximately 80%.

    
    The highlights of the Avery/Santos initiative are as follows:

    Total Program ((*)Australian $):

    Capital:                             $18.5 Million

    Cost Sharing:                        Avery 23.95% - $4.4 Million
                                         Santos 76.05% - $14.1 Million

    Operator:                            Santos Ltd.

    Components:

    Wompi Block:

    4 wells                              $6.8 Million
    200 Km(2) 3D Seismic                  3.4
                                          ---
                                         $10.2 Million
                                         -----

    Post Program Interests:              Avery             30%
                                         Santos            40%
                                         Partners          30%

    Barta Block:

    3 Wells                              $6.6 Million
    100 Km(2) 3D Seismic                  1.7
                                          ---
                                         $8.3 Million
                                         ----


    Post Program Interests:              Avery             25%
                                         Santos            45%
                                         Partners          30%

    (*) $1.00 Canadian = $1.16 Australian
    

    Santos Ltd is a major Australian oil and gas exploration and production
company based in Adelaide with interests and operations in every major
Australian petroleum province. Avery's association with Santos will assist in
reducing the risk of Avery's Cooper Basin exploration program through the
application of the above mentioned large 3D programs along with Santos'
expertise in all disciplines and its proven track record of finding and
developing commercial discoveries in the Cooper Basin. Preparation of the
program will commence immediately with the first wells being drilled during
the first quarter of 2008 followed by a rolling out of the balance of the
program over a period of eighteen months from the signing of the Letter of
Intent.
    The management of Avery believes this program will provide a significant
opportunity to add value for our shareholders over the near to medium term.

    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 is planning 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 A. Little, Chairman
& CEO, (403) 205-2526; Richard Edgar, President, (403) 205-2526; John H.
Carruthers, Executive Vice President, (403) 205-2526, Email:
info@averyresources.com, Website: www.averyresources.com

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AVERY RESOURCES INC.

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