innamincka doubles share price

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    Innamincka doubles share price
    By Jane Williams
    December 29, 2003
    JUNIOR oil and gas explorer Innamincka Petroleum Ltd more than doubled its share price today after the company announced a new gas find in the Cooper/Eromanga Basin.

    Innamincka shares closed up 19c at 33c after it reported a significant new gas discovery at its second exploration well on the PEL 103 joint venture, 90km north of Moomba in South Australia.

    The discovery by the Yarrow-1 well penetrated a gas column of about 46m with the lower limit of the gas accumulation yet to be defined.

    Earlier reports estimated the Yarrow resource to hold 72 billion cubic feet of gas.

    Going on average finds in the basin about half of this should be recoverable, Intersuisse analyst Gavin Wendt said.

    Mr Wendt said the sudden surge in Innamincka's share price reflected market confidence in the Cooper Basin and the company's previous disappointments in the region which resulted in it being considerably under-priced.

    "There's been a lot of success over the last 12 months in the basin and Innamincka's initial wells have not been very successful," he said.

    "In terms of its location this discovery (is close to existing infrastructure) so it won't take long to get into production and its capital costs will be low."

    Innamincka, a 35 per cent stakeholder and operator of the venture, said a portion of the find had tested at a rate of up to 3.87 million cubic feet a day.

    A preliminary estimate of recoverable gas is expected to be made in the week commencing January 5, 2004, following the evaluation of wireline log data currently being acquired.

    Innamincka's partner in the venture is Texas-based Vernon E Faulconer Australia Inc.

    Innamincka is an Australian based oil and gas exploration company with projects located in Queensland and South Australia exclusively within the Cooper/Eromanga Basin.

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