**Good report from where i stand.Exerpts as...

**Good report from where i stand.
Exerpts as follows............................



Oklahoma - .5mcf per day

Clear Creek -
The Ridge Runner 13©\17 was pumped down (see an
explanation below) and tested at 1.7
million cubic feet per day for 10 days on a 24
hour basis.
The Ridge Runner 11©\17 was pumped down
and produced at 7 million cubic feet per day for
two months during daylight hours only, due to the
danger of night time flaring of such a large gas
flow.


Compression:
There is a major trunk line crossing the middle of the Clear creek unit which has historically taken and will continue in the future to take the gas to market. This line
gathers gas from many producers in the area and is considered a ¡°high pressure¡± line, carrying from 450©\600 lbs of pressure. In order for Marion to put its gas into
the line, the gas has to be compressed to overcome the line pressure. A certain amount of duplicate compression is also required to make allowance for down time
and maintenance. The installation of the equipment was not totally in Marion¡¯s control since most of it was being installed by the shipper of the gas, Questar Corporation. This also resulted in further significant delays.

Rather than be totally dependent on Questar for compression, during the summer of 2008 Marion rented and installed its own main compressor, and housed the
compressors in winterized huts. This was finalized by the middle of December of 2008. A second compressor was also set to provide redundancy/backup. Up to the time of these installations being completed, the wells produced into temporary compressors with uninterrupted run time often no longer than approximately 48 hours. The compressors now installed give the Company greater confidence in
achieving uninterrupted run time in the future.



Hydration:
Results to date have been successful with no evidence of any further hydrate re©\formation.


Conclusion:
Fluid levels at all wells are coming
down and the wells are getting ¡°gassier.¡± With 10 Clear Creek wells currently coming on production pretty much at the same time, we remain confident that the 20 million cubic feet of gas production target as disclosed in previous ASX Announcements and at this year¡¯s AGM will be achieved.
Throughout this two year plus period, Marion has been able to work effectively with the various Regulatory agencies, receiving all the permits necessary for operations in
Clear Creek, including building gathering lines, compression facilities and additional drilling permits where necessary. The current infrastructure is capable of easily handling daily production of our target of 20 million plus cubic feet of gas per day and the Company has well permits for future drilling. These two factors position the Company well for its future operations.




RESOURCE©\in©\GROUND:
Ryder Scott
has concluded its analysis of the resource potential of certain non producing reservoirs under Marion¡¯s Utah leases. This study¡¯s results indicate 32.5 trillion cubic
feet (¡°Tcf¡±) of potential resource gas in place in the Emery Coals and the Mancos Shale at Marion¡¯s Clear Creek and Helper projects.
A second resource study of the potential in the non producing Blackhawk Coals under Marion¡¯s leases in the Helper area has been conducted by the independent
engineering firm of William H. Cobb and Associates (¡°Cobb¡±). Results from this study indicate a potential resource in place of 1.0 Tcf of gas with an expected recovery of 603 Bcf of gas, a recovery factor of 60%.
Based on these two reports, the estimated potential recoverable resource from currently non©\producing reservoirs on the leases owned by the Company is between
2.4 and 4.3 trillion (Tcf) of natural gas. This estimate is a substantial increase of the previous estimate of 1.4 Tcf potential resource in place and a potential recoverable
natural gas resource of 0.96 Tcf at Clear Creek from the Emery and Ferron coals.

Ryder Scott Company, L.P.
The preliminary potential resource estimates as determined by Ryder Scott Company, L.P.
:
Emery Coals at Clear Creek: 814 Bcf of gas in place
Emory Coals at Clear Creek: recoverable resource 407©\651 Bcf of gas
Mancos Shale at Clear Creek: 5.5 Tcf of gas in place
Mancos Shale at Helper: 26.2 Tcf of gas in place
Mancos shale a Clear Creek and Helper: recoverable resource 1.55©\3.11 Tcf of gas.

The report prepared by Cobb & Associates estimates the resource potential as follows:
Blackhawk Coal in place: 1.0 Tcf of gas
Blackhawk Coal recoverable resource: 603 Bcf of gas
These resource estimates are in addition to the 2P Ferron sandstone reserves at Clear Creek and other reserves at Helper. Potential resources are not certifiable reserves and have more risk associated with their size and commerciality than reserves.

Reserves...
Based on the reservoir characteristics, the areal extent defined by the original wells, the performance and data of the old wells, and data (such as pressure and log information) from the new wells, in June 2007 Cobb & Associates assessed reserves in the field as 236 Bcf of 2P (proven and probable) with 125 Bcf of 1P (proven only) reserves. It should be noted that with the exception of the Ridge Runner 11©\17 well (which tested over 7 million cubic feet per day ¨C see below), the assumption regarding initial production in the Cobb report for all present and future wells is 4 below 1.5 million cubic feet per day, which is close to the low end of historical results.


**No need to ramp this stock!