quarterly report

QUARTERLY ACTIVITIES REPORT
March 2007
OPERATIONS
Cooper Basin PEL 106
During the period, approximately 70% of the 3D Seismic program on the Spinel Block within Cooper Basin PEL 106 was completed by operator Great Artesian Oil &
Gas Ltd.
The seismic acquisition program has focused coverage on the western rim of the Patchawarra Trough and aids in the delineation of both structural and potentially
large stratigraphic gas/condensate traps in a geological setting similar to that of the Raven Gas Field. The program is expected to enable a large drilling inventory to be established. The seismic acquisition program is the largest 3D seismic program ever undertaken onshore in Australia.
The program was completed in the current period and processing and interpretation of the data is expected to take another 3 to 6 months. This will be followed by a drilling program in which the Company expects to complete four wells thereby earning a 50% participating interest in the Block.
The geophysical data from the Survey will also provide valuable information for the commercialisation and development of the Company’s existing gas / condensate discoveries, Rossco, Paranta, Papr ika, Nutmeg and Cadenza. Great Artesian Oil & Gas Ltd are continuing the technical study to determine the most economic method of connecting and producing gas/condensate from these discoveries.
Energy Investments Limited holds a 37.5% working interest in the Rossco and Papr ika gas/condensate discoveries and a 50% working interest in any production within the Paranta Block, including the Cadenza gas/condensate discovery and has
an agreement to earn a 50% interest in the Spinel Block.
Cooper Basin, Qld: ATPA 656/657/658/660
Discussions with Native Title Representative Bodies were continued in the Period.
No field activities were undertaken and the compilation of regional data continues.

Coal Bed Methane (CBM) JV: ATP 613/674/733
The Joint Venture with Magellan Petroleum Australia Limited (Magellan) for the completion of a two stage CBM exploration program on the ATP’s initially involved
the drilling of two core wells within the Burrum Coal Measures of the Burrum Syncline, in the Maryborough Basin, QLD.
The wells were designed to evaluate the coal seam potential of the previously unexplored Burrum Coal Measures in the northern portion of the Burrum Syncline.
Drilling of the Burrum No 1 CBM well with the Depco Rig 22-UDR 1200 was completed in ATP613P to a total depth of 438 metres. The well was fully cored to TD and wireline logs run to further evaluate the coal seams intersected, particularly those in the open-hole section. Several coal seams were intersected and sampled
for desorption analysis. 11 metres of net coal were intercepted by the well, and significant quantites of methane gas were desorbed. EIV awaits final quantitative
and qualitative testing of the gas from the cores.
The second well in the program, Burrum No 2 was spudded on 4 March 2007 and drilled in open hole to a depth of 115m. The well was fully cored from 115 m to 390 m in the Burrum Coal Measures and three DST’s were run. The well was then open holed to a TD of 545 m and wireline logs run. Coal seams with a total net thickness of approximately 17 meters were cored and sampled for desorption analysis.
Significant quantities of methane gas were desorbed, and evaluation of the coal seams’ gas potential is continuing.
The Operator is currently assessing the development of a 5 spot pilot over the project area, with geological and structural interpretation continuing, and assessment of appropriate completion methods.
Coal Bed Methane: ATP 813/814/817/818/819
No field activities were undertaken on these properties in the Period. Review of regional geology and related data continues. Planning has commenced for
appraisal drilling and pilot development in the 100% owned ATP817P in the Bowen Basin, west of Santos Limited’s Fairview Field and in 100% owned ATP818P in the Surat Basin east of Queensland Gas Company’s and Arrow Energy’s Walloon CBM projects.
The Company signed a Heads of Agreement with CSM Energy Limited in the previous period for the joint development of a Coal Bed Methane (CBM) pilot
program on the Eastern Block of the highly prospective ATP 814P license. Further negotiations with CSM Energy has resulted in an extension of the work
program to include the funding of up to 2 four-well pilot CBM project developments, estimated at approximately $6 million, for CSM Energy to earn a 50% working
interest in 7 graticular blocks within ATP 814P.
CORPORATE
Board Changes
Messrs Doherty, Meagher and Dewhirst retired from the Board on 16 February 2007.
Capital Raising
The Company engaged BBY Limited to manage a proposed capital raising in February however this was postponed due to the change in market conditions at the time. Melbourne based investment banking group Chimaera Capital have provided a loan facility to the Company of up to $4.6 million which will be applied to the Company’s JV commitments and CBM development programs.
General Meeting
A general meeting of Shareholders was held on 30 March 2007.
END
For further information please contact:
Sharif Oussa, Managing Director/ CEO
Energy Investments Limited
Tel: +61 2 9279 0873
Em: [email protected]