re: epr now up to .... .135....$$$ EPR now up to .355 with...

re: epr now up to .... .135....$$$ EPR now up to .355 with target price 14c soon to be hit. Last ann for those that missed it..........
Good trading
M2u


3 September 2004
Search for Otway Basin oil and gas set to surge
as offshore rigs move in during the summer season
The race for oil and gas discoveries in the waters off Victoria’s coastline is about to take off,
according to Otway Basin specialist, Essential Petroleum Resources Limited.
Essential Petroleum Managing Director, Mr John Remfry, said eight offshore wells were
scheduled in the 2004-05 summer season, compared to just one in the previous year.
This represents total exploration spending of about $120 million over the next few months in the
waters off Victoria’s south west coastline.
Melbourne-based Essential Petroleum is a specialist in oil and gas exploration in the Otway
Basin. It was among the first to recognise the potential of the region and acquired permits before
a rush of other explorers sparked by major offshore gas discoveries at Geographe and
Thylacine in 2001.
Mr Remfry said the urgency behind exploration in the offshore Otway Basin was driven by a
once-in-a-lifetime opportunity to fill a looming hole in gas-fired energy supplies to the eastern
states of Australia.
“Industry projections show that gas production will fail to meet demand as early as 2011, in just
seven years’ time, despite the major discoveries of Geographe and Thylacine in the offshore
Otway Basin in recent times.
“Given that offshore discoveries take five to six years to reach production, the eastern states of
Australia are fast-approaching a shortfall in their future energy supplies.”
Mr Remfry said explorers were focusing on the Otway Basin because it was only basin that was
big enough and prospective enough to meet the projected shortfall.
“The two mainstays of gas supply to the eastern states - Bass Strait gas from the Gippsland
Basin and the Cooper Basin – are fast depleting after decades of production.
“By contrast, the Otway Basin is still lightly explored, and has already produced some major
discoveries. It’s three times the area of the Gippsland Basin and rich with structures and
petroleum systems. It’s no surprise there is an expectation in the industry that whoever makes
the next big discovery is going to be in the box seat.”
While Essential Petroleum is not drilling any offshore exploration wells this season, shareholders
of the Company will be vitally interested in two offshore exploration wells about to be drilled in
permits adjacent to the Company’s offshore acreage.