November 3, 2008

TRUenergy to Drill in Queensland for Coal Seam Methane

Integrated energy company TRUenergy has announced that it will commence the drilling of up to five coal seam methane coring wells on two tenements in the Surat Basin, Queensland.

In November 2007, owners of the sites, Rawson Resources and Energetica Resources had agreed to a farm-in agreement, allowing TRUenergy to explore for coal seam methane (CSM) in two permits, ATP837P and ATP 873P, in exchange for 70% of the CSM rights.

TRUenergy will use the Ancon Rig 1 to drill, core and test the coal seam gas (CSG) exploration wells. Wells will be drilled to depths of up to 700m to test the Walloon Coals which are productive for CSG in the adjacent Lacerta CSG Field operated by Sunshine Gas.

Cores from these wells will be gathered and tested to gather data on coal seam methane potential within the permits. Assessment of further work requirements followed by examination of pilot production options will be assessed in early 2009.

Securing upstream gas supplies is a key component of TRUenergy's business and climate change strategy, with the company currently directing significant investment towards transforming its portfolio to a lower emissions-intensive operation.

Following completion of the farm-in commitment work the CSM joint venture will comprise TRUenergy holding 70% interest as operator, Rawson Resources with 15% and Energetica with 15%.