NON-RENOUNCEABLE RIGHTS ISSUE The Board is pleased to announce a...

NON-RENOUNCEABLE RIGHTS ISSUE The Board is pleased to announce a fully underwritten non-renounceable rights issue to shareholders (Rights Issue), to raise $5,261,810 before costs Under the Rights Issue, the Company will offer its shareholders, whose registered addressed are within Australia and New Zealand (Eligible Shareholders) one (1) new fully-paid ordinary share for every one (1) fully paid ordinary share held as at 5:00pm on Thursday 26 August 2010 (Rights Issue Share) with one (1) free new option (each with an exercise price of $0.04 and an expiry date of 30 June 2014) (Rights Issue Option) for every four (4) Rights Issues Shares subscribed for. The issue price for the Rights Issue Shares will be $0.04. Fractional entitlements will be rounded down to the nearest whole number and the Rights Issue Shares will rank equally with the Companys fully paid ordinary shares on issue. The Rights Issue is fully underwritten by Patersons Securities Limited and will result in the issue of 131,545,267 Rights Issue Shares and 32,886,316 Rights Issue Options, to raise $5,261,810 before costs. The funds raised by the Rights Issue will be used for funding drilling and completion costs to earn a 90% interest in Backreef-1, exploration costs including CSG & Shale Gas assessment, advancing Native Title negotiations in Canning Basin permit 5/07-8 EP, and general working and administrative capital. In accordance with the ASX Listing Rules, the Company has decided that the Rights Issue will not be extended to shareholders with registered addresses outside Australia or New Zealand as the Company has formed the view that it would be unreasonable to extend the offer in such a way having regard to:
1. the number of shareholders outside Australia and New Zealand as a proportion of the total shares of the Company;
2. the number and value of securities to be offered to shareholders outside of Australia and New Zealand; and
3. the costs of complying with the legal requirements and requirements of regulatory authorities overseas jurisdictions.
The Prospectus will be lodged with the Australian Securities and Investments Commission at 5.00pm (AEST) and will be available on the ASX website at www.asx.com.au for inspection.
Timetable * The proposed timetable for the Rights Issue is as follows:
Initial announcement of Rights Issue, lodgement of Appendix 3B and Prospectus
Tue 17 Aug 2010
Despatch of letter to shareholders
Wed 18 Aug 2010
Ex Date (i.e. date from which securities commence trading without the entitlement to participate in the Rights Issue)
Fri 20 Aug 2010
Record Date (i.e. date for determining entitlement to participate in the Rights Issue)
Thu 26 Aug 2010
Despatch of Rights Issue offer document and personalised Entitlement and Application Form
Mon 30 Aug 2010
Closing Date
Mon 13 Sept 2010
Company notifies ASX of under subscriptions
Thu 16 Sept 2010
Allotment of Rights Issue Shares
Tue 21 Sept 2010
Despatch of holding statements
Tue 21 Sept 2010
* These dates are indicative only and subject to change. The Company reserves the right, subject to the Corporations Act, the ASX Listing Rules and other applicable laws, to vary the dates of the Rights Issue, including extending the Closing Date/s or accepting late applications, either generally or in particular cases, without notifying you. You are encouraged to submit your application as soon as possible. Any extension of the Closing Date/s will have a consequential effect on the date of the issue of the securities.