interesting info....... From: Hayden Bairstow Sent: Monday, 16...

interesting info....... From: Hayden Bairstow
Sent: Monday, 16 January 2006 11:31 AM
To: EQUITIES; FUTURES
Subject: TRICOM RESEARCH: Marion Energy Limited (MAE $0.60) - First well at Helper flows at 1.3MMCF/D



TRICOM RESEARCH: Marion Energy Limited (MAE $0.60) – First well at Helper flows at 1.3MMCF/D



Key points:

MAE (formally known as Carpenter Pacific Resources Limited (CPC)) has announced that the first well at its Helper project in Utah has flowed at 1.3MMCF/D.
The well, Kenilworth Rail Road #1 (KRR#1) is the first of a planned 10 well program at Helper.
KRR#1 was completed following fracture stimulation in December 2005 and production tested over an extended period to determine the flow rate.
MAE has a 63.75% interest in the Helper project and is the operator.


Tricom Comments:

The result was better than expected and we note that our estimates assume that each well in the 10 well program at Helper flow at 0.6MMCF/D.
MAE has indicated that the completion of the next well, KRR#2, is expected in the near future and drilling of the third well, Cordingley Canyon 15-2, has also commenced.
The company has stated that its share of KRR#1 production should add over $2Mpa in operating cash flow.


Investment View:

This first well at Helper is encouraging, however, as this is only the first well of a 10 well program we are leaving our production estimates for the project unchanged at this stage.
We note that the tie in of the first well at Helper and the recent production test at Clear Creek has confirmed that MAE will source cash flow from three separate operations in 2006.
We have increased our valuation for MAE from $0.67/share to $0.71/share following this result to reflect the reduced risk attached to our production estimates for the Helper project now that an initial flow rate has been confirmed.
Upside to our valuation exists through the successful completion of additional wells that confirm flow rates in line with our expectations at either of the company’s three projects; Clear Creek, Helper and Jefferson-McLeod.


HAYDEN BAIRSTOW

Equities Analyst
Office +61 3 8636 3310

Mobile +61 439 889 321
Fax +61 3 9600 2773 (general)
Tricom Equities Limited
Level 31
360 Collins Street
Melbourne Victoria 3000
Australia
www.tricom.com.au



Tricom Interest

Tricom has acted as co distribution agent for the institutional placements totalling $5 million. Tricom received a commercial rate of fees for performing these roles.



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