CARNARVON BASIN CAMPAIGNSARTEMIS-1 ? DRILLING IN WA-360-PZEEBIES...

CARNARVON BASIN CAMPAIGNS
ARTEMIS-1 ? DRILLING IN WA-360-P
ZEEBIES 3D ? SEISMIC IN WA-409-P
Moby Oil & Gas Limited (ASX code: MOG) (Moby) is pleased to provide this update in relation to its exploration activities in its Carnarvon Basin permits, WA-360-P and WA-409-P. Reference to Moby includes a reference to its wholly-owned subsidiary, Rankin Trend Pty Ltd.
WA-360-P - Artemis-1 ? Drilling Underway
Moby holds a 10% interest in the WA-360-P permit. The permit contains the Artemis prospect, with the Artemis-1 well currently being drilled to test that prospect ? see the following Location Map. The well is planned to be drilled to a total depth of 3,525m.
Artemis-1 Progress
The Operator of the well, MEO Australia Ltd (ASX code: MEO), has advised that the Artemis-1 well had reached the intermediate casing point and 13-3/8? casing had been run and cemented in to a depth of 1,860m. Installation of the blow-out-preventer and marine riser have been completed and the equipment pressure tested. Drilling of the 12-1/4? hole is expected to re-commence later this evening.
The WA-360-P permit and the Artemis Prospect
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WA-409-P - Zeebries 3D Seismic Survey Underway
Farmout to Apache
Moby previously advised that it had entered into a farmout agreement with Apache Northwest Pty Limited (Apache) in respect of Moby?s 50% participating interest in the WA-409-P permit. Apache Northwest Pty Limited is a wholly-owned subsidiary of Apache Corporation.
As part of the same overall transaction, Apache also entered into an agreement with third parties in respect to WA-359-P, a permit in which Moby has no participating interest, but which is juxtaposed with WA-409-P as shown in the following Location Map.
While each transaction remains subject to receipt of various regulatory approvals, including a successful outcome to an application to vary the terms applying to WA-359-P, Apache has already commenced seismic work.
Location Map of the WA-409-P and WA-359-P permits
Apache?s Seismic Obligations
Under the terms of the farmin agreements relating to each of WA-409-P and WA-359-P, Apache has agreed to fund the acquisition, processing, mapping and interpretation of a 3D seismic survey across each permit. This commitment will earn Apache a 40% equity interest and operatorship in each of WA-409-P and WA-359-P, with Moby?s interest in WA-409-P reducing to 30%.
Apache, in furtherance of its farmin arrangements, has now commenced a new 3,783 km? 3D seismic survey, called Zeebries, incorporating the entire 566 km? area of the WA-409-P permit - see Location Map below showing Zeebries 3D outline. Moby will have a 30% free carried interest in the Zeebries 3D survey in WA-409-P. The whole 3,788 km? survey will take approximately three months to acquire. The aim of the survey is to define several new, potentially drillable, leads and prospects.
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Apache?s Right to Elect to Drill ? WA-409-P
Apache has a further right to elect to earn additional interests in WA-409-P and WA-359-P by funding up to 100% of the costs of the first well to be drilled in either of the permits. If Apache elects to drill a well in WA-409-P, Moby will be free carried through the costs of the well but will retain a 15% carried interest.
If Apache drills a well in the adjoining permit, WA-359-P, Apache will have completed its right to acquire a 70% interest in each of WA-359-P and WA-409-P, with Moby retaining a 15% interest and an obligation to fund its participating interest share of any well the parties subsequently agree to drill within WA-409-P.
Moby? Right to Maintain a 20% interest in WA-409-P
Additionally, Moby has retained the right to elect to fund 5% of the costs of any well in WA-409-P and, by so doing, to maintain its potential interest in the permit at 20%.
The Zeebries 3D Seismic Program ? 3,783 km?
By Order of the Board
J.G. Tuohy
Company Secretary
3 December 2010