read announcement just out unbelievable

""read announcement just out unbelievable""

""Initial gas production rate is expected to be in excess of 20 million cubic feet per day from the first two wells.""

""Levels of condensate and oil production are expected to increase to in excess of 1,500 barrels per day over time from the field""

Telephone: +61 8 9420 9300 Facsimile: +61 8 9481 2690 23 February 2007 Company Announcements Office Australian Stock Exchange Limited By e-Lodgement High Island Project – Acceleration of Development Plan Gawler Resources Ltd (ASX: GRL) (Gawler or Company) is pleased to advise that following the successful drilling of the High Island 1 well, located off-shore Texas, the joint venture partners are currently evaluating opportunities to fast track project development with a view to commencing production before the fourth quarter 2007. Previous ASX releases have referred to the construction of new production facilities and drilling of wells two and three before calendar year end, with production forecast to commence in approximately February 2008. Plans currently under consideration would see the acquisition of an existing platform, drilling of the second development well and start of production near the end of the third quarter 2007. Initial gas production rate is expected to be in excess of 20 million cubic feet per day from the first two wells. The third development well would be drilled and if successful, added to production in 2008. Levels of condensate and oil production are expected to increase to in excess of 1,500 barrels per day over time from the field. As previously advised, the High Island -1 well has confirmed the presence of good quality gas and condensate in high quality reservoir sands in both the shallower zone, top at 6,823 feet Measured Depth (“MD”) and the deeper zone, top at 9,704 feet MD. Reservoir thicknesses are broadly in line with pre–drill expectations. Both zones correlate with hydrocarbon bearing sands in the six earlier drilled penetrations of these sand units and are consistent with the pre-drill mapping of the 3D seismic data. Pre-drill reserve potential based on the 3D and existing drilling data was 3.2 million barrels of oil and 38 billion cubic feet of natural gas, potentially recoverable from three new wells. Federal and other royalties on production equate to 25% giving a Net Revenue Interest (NRI) to Gawler of 22.5% (75% of 30%). In addition, the 30% WI is subject to an arrangement allowing certain USA based private interests to “back-in” for 5.4% after the interest holder has recouped its initial investment.

Ownership As previously announced, Gawler has made an offer to acquire a 30 per cent working interest (30% WI) in the High Island oil and gas exploration-development project in the Texas Gulf Coast region. The offer to acquire the interest in High Island has been made to ASX listed Aurora Oil and Gas Limited (ASX: AUT), a company focused on major onshore US oil and gas opportunities. Subject to shareholder approval at a meeting convened for this morning Western Australian time, completion of this transaction would result in Gawler acquiring the interest in High Island and potential future opportunities in the shallow water of the Texas Gulf Coast identified by Aurora. In return Aurora would become a major shareholder of Gawler with Board representation. There are no other Australian companies participating in the project Yours sincerely GAWLER RESOURCES LTD David Steinepreis Chairman In accordance with the Australian Stock Exchange requirements, the technical information contained in this report has been reviewed by P D Allchurch, BSc, FAIMM, MPESA, a consultant to Aurora. Mr Allchurch has in excess of 5 years experience in his field of activity and he consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. Mr Allchurch holds shares in Gawler Resources