try again..:)3 February 2006 DRILLING AND OPERATIONS UPDATE,...

try again..:)
3 February 2006 DRILLING AND OPERATIONS UPDATE, HELPER, UTAH AND CORPORATE UPDATE 1. Progress Report - Cordingly Canyon 15-1 Well Marion Energy Limited (ASX: MAE, MAEO) as Operator is pleased to announce the successful drilling of the Cordingly Canyon 15-1 well to its targeted depth of 5,050 feet. Initial indications are very encouraging with numerous gas shows encountered during drilling. This well is the fourth well in a 10 well program currently planned for the Helper project in Utah. This well will be completed and flow tested over an extended period to establish a stabilised flow rate, following the drilling of the Ball Park Canyon #1 well (refer below). 2. Spudding of Ball Park Canyon #1. The Company is also pleased to advise that the Ball Park Canyon #1 well was spudded on 2 February, 2006. This well is the fifth well in the program. After the Ball Park Canyon #1 well is drilled, completion and flow testing operations will then commence for the three recently drilled wells, the Cordingly Canyon 15-2 well (ASX Announcement of 18 January 2006) and the Cordingly Canyon 15-1 and Ball Park Canyon #1 wells. Further details on these operations will be provided to the ASX as warranted by progress. In the absence of encountering any unforeseen operational difficulties, it is anticipated that all three new wells will be completed and tested in the March 2006 quarter. 1
In the Helper project, to date, Marion has drilled and completed the KRR #1 well which tested 1.3 million cubic feet of natural gas per day and which is over 4 times the average flow rate for the area and is currently in the process of completing and testing the KRR #2 where it is making good progress. The Helper project comprises approximately 5,000 acres located along the northern edge of the Helper Field which is part of the substantial Drunkards Wash complex, the largest producing gas field in Utah. Working interests in the Cordingly Canyon 15-1 and the Ball Park Canyon #1 wells are as follows: Marion Energy (ASX: MAE, MAEO) 63.75% Odyssey Energy (ASX: ODY) 15.00% Pegasi Energy 10.625% Private Interests 10.625% Working interests in the Cordingly Canyon 15-2 are as follows Marion Energy (ASX: MAE, MAEO) 47.8125% Odyssey Energy (ASX:ODY) 11.25% Stone Energy 25.00% Pegasi Energy 7.96875% Private Interests 7.96875% 3. Changes to Board of Directors During the transition year from its Australasian operations as Carpenter Pacific to its current USA based oil and gas operations, the Company has benefited by having a Board of seven members representing a wide range of skills and experience. We now feel a smaller sized Board membership of five is appropriate to the scale and complexity of our operations. In order to achieve this outcome, the Board has accepted the resignations of Michael Atkins and Bill Burdett, whose effective contributions over this challenging period are gratefully acknowledged. The continuing Board comprises: Greg Harvey Non executive Chairman Jeff Clarke MD/CEO Alan Edgar Non executive Karl Louman Exec Dir/CFO Peter Collery Exec Dir/Company Secretary Marion Energy Limited is aggressively pursuing a low risk strategy to increase reserves and production of non-conventional natural gas in the onshore USA. The company plans to
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develop low cost reserves by exploiting mature reserves and finding new reserves in existing producing areas. Favorable industry fundamentals, including record high natural gas prices, advances in drilling, completion and fracture stimulation techniques, coupled with ready access to infrastructure have allowed the company to pursue several attractive investment opportunities. The company currently has in its portfolio an inventory of two to three years of drilling opportunities, which if successful could create a substantial reserve base. For further information contact: North American Contact: Mr Jeff Clarke Managing Director & CEO Ph: +0011 214 244 7690 Email: [email protected] Australian Contact: Mr Peter Collery Executive Director and Company Secretary Ph: 03 8862 6466 Email: [email protected]