Confirming the Gas Reserves Potential of both the Namoi and...

Confirming the Gas Reserves Potential of both the Namoi and Bohena Coal Seams

Eastern Star Gas Limited (ASX:ESG OTCQX:ESGLY), as operator of the Narrabri Coal Seam Gas Project, announces gas production from the Bibblewindi West tri-lateral production pilot is now in excess of 2.0 million standard cubic feet per day. Water production from the pilot continues at approximately 3500 barrels per day with in excess of 550 metres of head (water) pressure still to be
removed.

In announcing the flow rate Mr Casey, Managing Director of ESG, said that while early days, these results are not only an outstanding success for the Namoi Seam in its own right, but also augur well for the ongoing performance of the Bibblewindi multi-lateral pilot, where the Bohena coal seam is more than 5 times thicker, and where dewatering is actually at a less advanced stage.

Mr Casey added the remarkable rate of ramp up in gas production from the Bibblewindi West production pilot has been achieved following commencement of dewatering only one month ago.

Mr Casey concluded the performance already achieved at Bibblewindi West substantiates our decision to test the Namoi coal seam. We expect the Namoi coal seam will not only make an important contribution to future reserve upgrades but is again a strong indicator of the potential
performance of the more areally extensive and ignificantly thicker Bohena Seam.