Drillsearch has agreed to pay certain OMV subsidiaries $1 million for the 95% interests in Retention Lease NT/RL3 covering the Barnett oil discovery and 94.1% working interest in Retention Lease WA-13R covering the Turtle oil discovery. OMV will be granted a 5% gross royalty on oil produced subject to standard industry adjustments.

“The Turtle and Barnett properties represent a major appraisal/exploration opportunity which will complement Drillsearch’s other exploration permits in the southern Bonaparte Gulf,” managing director Philip Kelso said.

“Two appraisal wells are being planned for mid 2005.”

Drillsearch said its seismic interpretation and reservoir studies indicated there were multi-zone stacked reservoirs with several oil pools in several structures.

The company’s target estimates of oil in place were a high of 124 million barrels, a low of 38 million barrels and a best estimate of 91 million barrels

There were a potential 43 million barrels in place of 14°-20° API oil in the Keyling zone updip from the Turtle 1 well and a potential 55 million barrels in place of 38° API oil in the Top Lower Treachery zone, according to Drillseach.