an introduction to european gas ltd, page-9

re: commencement of operations france 11 July 2006
COMMENCEMENT OF OPERATIONS
LORRAINE, FRANCE
HIGHLIGHTS
�� Landholder access agreements finalised.
�� Government approvals achieved for the Folschviller program.
�� Drilling contract finalised.
�� Site works complete at Folschviller and have commenced at Diebling.
�� Two core well drilling program to commence the week of 24 July.

INTRODUCTION
European Gas Limited (“European Gas”) is pleased to announce the commencement of operations at its
75% owned Lorraine Project in eastern France. The principal target is Coal Bed Methane (“CBM”).
The initial program comprises two vertical core wells enabling definition of parameters for the two
subsequent under balanced lateral development/production wells.

The program is in preparation for the development of the large Gas in Place Resource which to date totals
28.1 billion cubic metres (“Bcm”) (991.2 billion cubic feet (“Bcf”)) within approximately 7% of the
Company’s permit and application areas.

PROGRAM
The first well at Folschviller in the Saint Avold block (see Figure 1.), is scheduled to commence on or about
24 July. Upon completion the rig will then be used to drill the second well at Diebling in the Alsting block.
The drilling program will take approximately ten weeks to complete.
The first well “Folschviller St1” is to be drilled at a site 850 metres east of the town of Folschviller. The
planned Total Depth (“TD”) is 1300 metres and three major packets of coal are targeted to be intersected
between 870 and 1300 metres from surface. The Westphalian D coal bearing sequence should be
encountered at 700 metres where HQ core will be cut through to TD.

The second vertical well “Diebling St1” is to be drilled at a site 2.1 kilometres south west of the town of
Diebling within the Alsting block. The planned total depth is 1500 metres and six major packets are
targeted. The Westphalian D coal bearing sequence should be reached at 880 metres and coring will be
continuous from that point through to TD.
The primary objective is the Westphalian D and C sequences with approximately 30 metres of net coal
targeted in each well".









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