re: touch up!!!-q'tly highlights Important to note that due to...

re: touch up!!!-q'tly highlights Important to note that due to recent sucess----no of wells in current programme to be extendered-----simply put there is more gas here than originally estimated..

More flow resultd to follow
MILESTONES ACHIEVED
• The first well (Ridge Runner 13-17) in the program at the Company’s Clear Creek project in Utah was successfully tested at a flow rate of 3.1 million cubic feet of gas per day. The company has a 67.5% working interest in this project.
• Commenced the completion and testing of the KRR #1 well at the Helper project in Utah. This operation was successfully completed in early January 2006 with the well testing at a rate of over 1.3 million cubic feet of gas per day. The Company has a 63.75 % working interest in this project. The company is currently testing the KRR #2 well, has completed drilling the Cordingly Canyon 15-2 well and has spudded the Cordingly Canyon 15-1 well, as part of a 10 well program.
• Successful recompletion of the Harris #1-U well in East Texas with a flow rate of 1.1 million cubic feet of gas a day. The Company has a 30% working interest in this project.
• A significant infrastructure upgrade program was commenced in East Texas in early December 2005. This is expected to result in an increase in East Texas production, once all the wells are fully brought back into production. This program is expected to be completed in February 2006.
• Successfully placed 16 million shares at 32 cents each, raising $5.12 million.
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• During the March quarter the company expects to become cash flow positive from operations before capital expenditures
• In calendar year 2006, Marion Energy currently plans to drill a total of 28 wells and undertake 8 well re-completions.