announcement ....... oil

Announcement out:

Gujarat will pay to Rey $250,000, provide detailed seismic interpretation and spend $4.85 million to earn a 90% interest in the two oil exploration tenements.

The above oil exploration tenements are located south of the Arc Energy oil tenement EP 371 on which the Valhalla-1 well drilling commenced on 15 November 2007.

The oil exploration leases occur over the extensive mineral leases covering the Canning Basin coal deposits that Rey holds for coal exploration and which Rey retains 100% ownership. The mineral leases are not part of the Gujarat Joint Venture.