Oil Basins has secured interim approval from the Department of Mines and Petroleum (DMP) for work related to the East Blina-1 petroleum exploration well within L6 block in the Canning Basin, Western Australia.

The approval allows the company to implement site clearing works, which began on 6 October 2010, and the installation of a cellar and conductor at East Blina-1 well.

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Oil Basins has been designated as the operator of the East Blina-1 well on behalf of the Backreef Area joint venture, in which Oil Basins has a net 80% stake and Green Rock Energy owns 20% beneficial interests.

The company has been trying to secure approvals for the drilling of the East Blina-1 petroleum exploration well since mid-August 2012.

DMP has yet to finalise the environment plan for the well, which is expected soon.

The environmental plan has been delayed due to the newly introduced environment legislation which became law early in September 2012, and seeks the knowledge of mud and additives properties and potentially proprietary commercial formulae.

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Oil Basins has sought the approval of the mud company for the disclosure.

The company said the East Blina-1 is the first onshore exploration well in Western Australia to be impacted by this new legislation.

Oil Basins said it will replace synthethic mud additives and modern polymer mud with natural muds and additives and re-submit the drilling application and finalise the EP.

The company has also mobilised the dynamic drilling rig #17 from Chinchilla, which is expected to arrive on 14 October 2012.

Oil Basins said it plans to drill the East Blina-1 well on 16 October 2012 to a total depth of 1,210m and will target the Basal Yellow
Drum dolomites Laurel oil play.

Drilling is expected to take 11 days to complete.