tintsfield pilot update and reserves assessmen, page-3

And here it is:

"Sydney, Australia ? 10 August, 2011 ? Eastern Star Gas (ASX:ESG; OTCQX:ESGLY), today provided
an update on its Tintsfield pilot and the next reserves assessment. The Tintsfield pilot commenced
operation in April 2011, targeting the Hoskissons coal seam which to date has not been included in
gas reserves assessments. In May 2011 ESG indicated that, unforeseen circumstances aside,
sufficient data would be available from Tintsfield by the end of June to form a view on its
production performance and gas reserve potential. However, while production from Tintsfield has
increased steadily from the onset of gas production the Company?s independent Reserves Certifier
(Netherland, Sewell and Associates, Inc.) has confirmed that there is not yet sufficient data
available from the Tintsfield pilot alone to warrant an updated reserves report.
Mr David Casey, Managing Director of ESG, said ?Commencement of operation of the Tintsfield
Pilot was an important step forward for the Narrabri Gas Project because the pilot opens up a
whole new gas reserves horizon. But initial production rates have not turned out to be sufficient
to support a meaningful review of gas reserves. A steadily increasing production profile and
evidence of good connectivity between the wells is encouraging, but it is too early to say
more.?
In addition to the gradual production start at Tintsfield, delays in NSW Government drilling
approvals have meant that ESG has not been able to drill wells critical to the anticipated August
reserves upgrade. As a result of these delays, ESG has demobilised both corehole and pilot
production drilling rigs.
Per the current timetable, in mid-September 2011 an Independent Experts Report will be included
in the Scheme Booklet for consideration by Shareholders voting at the Scheme General Meeting to
be held in mid-October. The Independent Experts Report is expected to include a third party
review of reserves and resources based on all available data at that time. This will be the next
independent review of ESG?s reserves."



Have to run now.

Cheers