Entek has finalized a farm-out of 50% Working Interest in GA A133 to Peregrine Oil and Gas. As planned Peregrine will become operator of the Block. Peregrine is an experienced Gulf of Mexico operator.

A Processing and Handling Agreement with the adjacent GA A155 Block and platform owners has also been executed. This allows Entek to process production from GA A133 through the GA A155 platform.

The hydrocarbon resource potential of GA A133 ranges from 2 BCF of 3P reserves (certified by Ryder Scott) up to 18 BCF of prospective resource. The initial well in GA A133 will target a prospect with up to 12 BCF of prospective resource. The proven reserves and associated prospective resource on the Block will be targeted for tie-in later.

The well is scheduled to be drilled in early June 2010 with Entek's share of costs for the initial well estimated at A$1,270,000.

Expected early revenue net to Entek of a successful first well on GA A133 is US$250,000 per month. First production is expected by year end 2010.

PN 975 Entek has also farmed in for a 25% Working Interest in a well being drilled from the PN 975 platform. Peregrine is the operator of the Block and platform. A Processing and Handling Agreement with the PN 975 platform owners has also been executed by the Company. This allows Entek to produce its gas through the PN 975 platform.

The well is targeting 4 BCF up-dip of wells that prove the accumulation. There is an additional 2 BCF of upside that can be produced later upon success.

The well is scheduled for mid April 2010 and should take around 30 days to drill and complete with Entek's share of costs for the initial well estimated at A$1,003,000.

Expected early revenue net to Entek of a successful well on PN 975 is US$100,000 per month. First production is expected by end June 2010.

This Block was not included in the valuation of the Company contained in the Investment Report prepared by Arrowhead BID, which was announced to the ASX on 30 March 2010.

Tags: Entek Energy Limited