mae ann .progress report.. help., page-4

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10 JANUARY 2006
PROGRESS REPORT ON WELL COMPLETIONS AND
SPUDDING OF THIRD WELL IN HELPER PROJECT, UTAH.
1. KENILWORTH RAILROAD #1 AND #2 WELL COMPLETIONS.
Marion Energy Limited (ASX:MAE, MAEO) as Operator is pleased to advise that the
completion process of the Kenilworth Railroad #1 and #2 wells is progressing as
expected. Initial indications from the wells are very encouraging. The two wells have
been tied into existing infrastructure and production should commence as soon as the
completion is finalised. It is anticipated that a sustainable flow rate of gas from the
wells should be determined in mid January 2006 at which time the results will be
announced to the ASX.
These are the first two of a planned 15 well drilling and completion program in the
company’s 63.75% owned Helper Project.
The Helper Project comprises approximately 5,000 acres located along the northern
edge of the Helper Field in the same Ferron CBM trend as the substantial Drunkards
Wash CBM Field in Utah, USA. Drunkards Wash is the largest producing gas field in
Utah, currently averaging 5.4 Bcf per month.
An agreement with Anadarko Petroleum Corporation is in place to sell gas through its
existing infrastructure.
Participating working interests in the KRR #1 and #2 wells are:
Marion Energy Limited (ASX:MAE, MAEO) 63.75%
Odyssey Energy Limited (ASX: ODY) 15.00%
Pegasi Energy 10.625%
Private interests 10.625%ഊ2. SPUDDING OF CORDINGLEY CANYON 15-2 WELL IN THE HELPER
PROJECT, UTAH.
Over the weekend of January 8/9, the Company has spudded its third well in the
Helper Project, the Cordingley Canyon 15-2. Further details will be provided to the
ASX as warranted by the progress made on this well. It is anticipated that this well
will be drilled, completed and tested by mid to late February, 2006.
Participating working interests in the Cordingley Canyon 15-2 well are:
Marion Energy Limited (ASX:MAE, MAEO) 47.81%
Stone Energy 25.00%
Odyssey Energy Limited (ASX: ODY) 11.25%
Pegasi Energy 7.97%
Private interests 7.97%
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
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]