🕐30.10.09 - 06:05 Uhr

Eneabba confirms significant stand-alone fuel energy projects in Western Australia’s Mid West



ENEABBA GAS LIMITED: ASX / MEDIA RELEASE 30 October 2009
Eneabba confirms significant stand-alone fuel energy projects in Western Australias Mid West Highlights: Independent analysis confirms substantial JORC compliant coal resource of 194 million tonnes in the first of the Companys ten Western Australia Mid West tenements; This analysis confirms coal contains insitu energy of approximately 3,037 PJ of energy, which is equivalent to the power needs of the Companys proposed Centauri-1 Power Station, operating at a level of 365 MW energy delivery, for over 100 years; and Fuel energy to be extracted using UCG technology, which is already in use world-wide.

Australian energy company Eneabba Gas Limited (ASX: ENB) ("EGL" or "the Company") can now confirm, what it believes to be, one of the most significant stand-alone energy projects in Western Australias ("WA") Mid West region ("Mid West").

Independent analysis by Xenith Consulting Pty Ltd ("Xenith"), now confirms that the first of the Companys ten Sargon Tenements contains 3,037 PJ of insitu energy.

Xenith is regarded as a coal resource specialist with experience in classifying coal resources both in Australia and worldwide. The final JORC resource result in this section of the Sargon Tenements (see Figure 1) was determined by Xenith, having increased by 20% on the Maiden JORC result as reported on 24 September 2009; On the basis of its analysis and understanding of the nature of coal, Xenith has determined the total estimated energy (in PJ) in this section of the Sargon Tenements.

It has found that, as the Sargon coal is running at an average of 16MJ/kg, the in-situ resource (averaging some 20% of ash) would yield 194 million tonnes of coal, translating to 3,037 PJ of energy. The Company is aware that in-situ coal in various operations within Australia and overseas, suitable for UCG, has yielded a potential range of recoverable energy of some 50.0% - 58.0% plus of the insitu energy. >From its evaluation, Xenith concluded (ASX 24 September 2009): "The large size of the overall Sargon group tenements when combined with the encouraging exploration results from tenement E 70/2758 suggest that the Mid West area could host a number of coal mineralisation targets suitable for Underground Coal Gasification ("UCG") technology." The Company believes the confirmation of this substantial coal resource and the overwhelming size of the energy potential of this project, is likely to represent a key milestone in the Companys elevation to a major Australian energy producer and should also underpin the timely development of a range of Mid West resources projects. "We recognise that, even at such an early stage, the energy potential of our project is enormous.

To put this into context, the amount of energy that has been delineated by the independent consultants would power our proposed Centauri-1 Power Station of 365 MW for over 100 years at full capacity.

In addition to this, the Xenith Report attached also advises that the western area adjacent to the 2009 exploration target zone has a high likelihood of further potential resource and it is recommended that further exploration be conducted to target this area " Eneabba Gas Managing Director Mr Mark Babidge said. "To place some perspective on these JORC results and standardised energy estimate the publicly announced details of the Gorgon Project under the Barrow Island Act (WA) 2003 State Agreement" reserves 2,000 PJ total, for the Domgas market over the life of the Gorgon Project" Mr Babidge added. Centauri-1 Power Station Since 2005, the Company, and its technical consultants, have diligently progressed plans for its proposed initial 168MW Centauri 1 gas-fired Power Station, located on Company‐owned land eight kilometres east of Dongara, and about 365 kms north of Perth in Mid West WA.

Generation capacity for the Centauri 1 Power Station can easily be increased to 365MW under the proposed plants existing technical specifications. In the past twelve months the Company has stepped up its activities regarding the development of its Centauri 1 Power Station.

To date it is the ONLY energy company in the Mid West to receive all the various Government approvals needed for the rapid development of this vital piece of infrastructure, including Planning Approval approval from the Shire of Irwin, the Environmental Protection Authority (EPA) and the Department of Industry and Resources (DoIR).

The Company is also the ONLY holder of an Economic Regulation Authority (ERA) generation licence in the Mid West for projects planned to support Oakajee Deep Water Port.

The Company is also the only energy company in the Mid West to have finalised all technical aspects associated with its Centauri 1 Power Station, and has also reached agreement to acquire four GE LM 6000 gas‐fired turbines.

This allows construction to commence on site immediately.

The Company expects its Centauri 1 Power Station to be operational in approximately 14 months, or as soon as take or pay contracts for Mid West iron ore customers are confirmed. These activities have, at all times, centred on the objective of becoming the leading supplier of cost effective, low carbon emission, "clean" energy to companies and organisations wishing to develop major mining and industrial projects in Western Australias rapidly developing Mid West, not limited to, but likely to include, a range of iron-ore mining companies developing projects in the Mid West. The Company strongly believes the recent announcements regarding the allocation of energy contracts by Synergy confirm the inability of others to demonstrate the capability to have project readiness in the Mid West. "All the building blocks are in place to ensure that Centauri 1Power Station is able to meet the needs of the Mid West companies, not least all necessary approvals, finalised technical plans and an MoU for a gas supply agreement with a dominant operator in UCG development.

More than that, we are also able to bring our power station on line within any timeframe required from any end users, at a cost that is significantly less than any current or potential energy competitors" Mr Babidge said. "We are also talking about real technologies, not technologies that may be in effect in the next 10‐15 years as we strongly believe that these are of no practical use to mining companies wanting to get projects up and running within the next five years.

The miners will not only have the ability of local generation, but power at much reduced price to assist in their projects economic benefit, thereby supporting the State Governments desire and vision for the Oakajee Port to commence" Mr Babidge added. Unique Location The Companys substantial energy resource and Centauri 1 Power Station are uniquely placed, both being adjacent to a major gas pipeline (Dampier Bunbury Natural Gas Pipeline access and the Parmelia pipeline runs through the Companys freehold land), rail (250 metres from the Companys property boundary), major State highways (Brand & Midland Highways border the Companys property), port facilities (Geraldton port and proposed Oakajee deep water port 65kms and 85 kms respectively), power (within 18 kms of the existing 132 kV line), and within delivery proximity of mining resource projects. Companys Environmental Credentials The Company is a Greenhouse Challenge Plus Member, which means that, in addition to the strong technical and economic credentials of the Centauri-1 Power Station, the Company has also focussed on ensuring the Centauri 1 Power Station will be a carbon neutral site.

This has an initial major offset via the conservation of some 3,000 acres of remnant bush, which has been confirmed by the Greenhouse Office to offset some 30.5 MW equivalent of carbon credits. The full Xenith JORC Report # 4 is attached to this Media Release.
To view this release online use this link: http://esp.gewru.com/download/files/12414/976690/Eneabba%20confirms%20Fuel%20energy%20source%20in%20WA%20mid%20West.pdf Mark Babidge Managing Director (08) 9321 0099 For further information please contact David Tasker, Group Director, Investor Relations PPR Tel (08) 9388 0944 Mob 0433 112 936 EM P.O.

Box 772 West Perth, Western Australia 6872 Phone: +618 9321 0099 Fax: +618 9321 0299 www.eneabbagas.com.au ABN 69 107 385 884 This message has been sent to you as a subscriber of the PPR mail service. If you no longer wish to be a part of the service, please email with the word "REMOVE" in the Subject line.
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