West Oil said the Crackling South Prospect has potential for estimated recoverable reserves of 20 million barrels if hydrocarbons are discovered and if the structure is full to spill point.

It is located in 12m water depths and the prognosed depth to the main objective sands is 400m. "The well will be drilled to a total depth of 500m with the main objective being the Birdrong Sandstone with good porosity and permeability," West Oil said.

Apache has the option to acquire an 11.25% interest in the permit from West Oil for a period of 90 days from the time that Apache is in receipt of the results of the Crackling South-1 well. In exchange, Apache will fund West Oil's share (11.25%) of the appraisal and feasibility costs up to a capped amount of $2.5 million.

Interest holders in EP-341 are West Oil (22.5%), Apache (22.5%), Tap Oil 50% - operator and Strike Oil (5%).