The Company, "TME", reports that it has acquired a one-percent working interest in an onshore lease in South Australia. This huge lease contains 1,230,000 acres and is located in the prolific Cooper-Eromanga Basin. Recent wells in the Basin have flowed up to 6,000 barrels of oil per day. The lease contains at least 20 structures. The Eucalyptus-1 is currently being drilled to test the first of these structures. The well is targeted to a depth of an (est.) 8,700 feet and will penetrate the Tinchoo and Pollawanna formations. The Operator, Cooper Energy NL, reports a drill bit change at 7,021 feet. The well is expected to T.D. and log in 10 to 12 days. This structure is projected to have recoverable reserves of 9 million barrels of oil. A Santos discovery well the James-1, located 8.6 miles to the west, had a combined flow rate of 3,210 B.O.P.D.

Therefore, TME becomes a partner in one of the largest exploration permits in the Basin and benefits from the advanced geological expertise of Cooper. Cooper Energy has discovered six important fields as a result of their last seven wells drilled.