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19 September 2011

The Company Announcements Office ASX Limited

Drilling Report

Siphon-1 Exploration Well, PPL 269, PNG

Preliminary Drilling Results

New Guinea Energy Limited reports that at 0600 PNG time, 19 September, the Siphon-1 well had reached a depth of 3863.7 m MD in basement.

The primary Toro Formation reservoir target was intersected at 3831 m MD.

Preliminary results from logging while drilling (LWD) showed elevated resistivities within the primary Toro Formation reservoir target, indicating the presence of hydrocarbons over an approximate 11 m gross (drilled) interval.

Overlying the Toro Formation an unexpected Elevala sand was encountered with elevated resistivities, indicating the presence of hydrocarbons over a gross (drilled) interval of
approximately 12 m.

Detailed wireline logging including density-neutron logs, fluid sampling and pressure measurements will be acquired to interpret the significance of these hydrocarbon indications.

Results of the further drilling and analysis will be announced as they come to hand.

The Siphon - 1 prospect is a wet gas prospect located in PPL 269 in Papua New Guinea. It is a fault-bounded, north-south elongated basement drape structure, adjacent to the Stanley gas field in PRL 4.

The participants in PPL 269 are:
Talisman Niugini Pty Limited (Operator) 50%
(a wholly owned subsidiary of Talisman Energy Inc)
Kirkland Limited 50%
(a wholly-owned subsidiary of New Guinea Energy Limited (ASX:NGE)