FAR is the holder of a 0.09375% royalty interest over Bass Basin (Offshore Tasmania) Permit T18P where the Trefoil-1 wildcat well was drilled and production tested during the final quarter of 2004, confirming a new gas-condensate field discovery. As a royalty holder FAR does not receive information on activities within the block other than for data lodged with the ASX.

According to reports lodged with the ASX, a significant volume of gas has now been proven at Trefoil. The most likely “in-place” resource has been reported to lie in the range of 200 to 300 billion cubic feet of gas and 14 to 21 million barrels of liquids.

ASX reports state the nearby Yolla field has been designed to allow the easy tie-in of Trefoil. The White Ibis gas and condensate field (also within T18P) is a potential “add on” in an overall development. Several exploration prospects within T18P have also reportedly been upgraded.

The royalty interest was created by a Deed of Assignment and Grant of Royalty dated 19 March 1986 made between First Australian Resources NL et al and Amoco Australia Petroleum Company (“Amoco”) and South Australian Oil & Gas Corporation Pty Limited (“SAOG”) pursuant to which a participating interest in T18P was assigned in exchange for an over-riding royalty interest.