Ann: Australia Update - PEP 167 Project Status , page-2

re: Ann: ITR: Australia Update - PEP 167 Proj... ""29 November 2010
AUSTRALIA UPDATE:
PEP 167 PROJECT STATUS
Interra Resources Limited (the Company or Interra) wishes to inform shareholders that the PEP 167 joint venture plans to drill a new well to follow up on the 1987
Windermere-1 oil discovery in the onshore Otway Basin, near Portland, in Western Victoria. PEP 167 is jointly held by Interras wholly owned subsidiary, Interra Resources (Australia) Pte. Ltd. (50%) and Bass Strait Oil Company Ltd (BAS) (50% and operator).
The 1987 Windermere-1 well produced oil on test but was not developed for production given the low oil prices and the available technology at that time. The joint ventures April 2010 3D seismic survey has provided a high resolution image of the subsurface structure and confirms closure at the Windermere oil reservoir level.
Planning has commenced targeting a drilling project in the second quarter of 2011, subject to approval by relevant local government agencies.
Given the recovery of oil from the 1987 well and the new 3D seismic interpretation, many of the risks usually associated with exploration drilling are significantly reduced at the Windermere project. A series of technical studies has also been conducted focused at applying careful well design and modern drilling and completion
techniques and thereby enhancing the chance of a successful project. Success at the Windermere closure would likely lead to development wells on the Windermere
structure as well as possible appraisal drilling of other newly mapped structures.
Windermere is located on easy terrain and with good all-weather road access. PEP167 also benefits from local infrastructure and support and a relatively short transport
distance via sealed highway to the Geelong refinery. Therefore, if oil production is established at Windermere, a relatively short development schedule is anticipated.""

All sounds good to me