Eneabba potential to rival Gorgon domgas

Eneabba Gas claims there is as much gas in one of its Mid West tenements as set aside by the Gorgon gas project partners for the domestic market, as it releases a maiden resource for one tenement.

The announcement is below:

Australian energy company Eneabba Gas Limited (ASX: ENB) ("EGL") has now received the first detailed resource statement from its coal tenements in the Perth Basin in Western Australia (see the attached Map of Sargon Group Target Area), which confirm the presence of a significant coal resource with considerable energy potential.

The attached Report from leading independent consultants Xenith Consulting Pty Ltd is the third in the series. The first was 5 August 2009, which delineated the initial "sweet spot" in tenement E 70 / 2758. On 19 August 2009 the second Report covered the whole of the Sargon Tenements and reported

"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."

Due to the nature of coal, all data includes the total potential energy as PJ in this part of the Sargon tenements. As indicated in the attached Xenith report, the Sargon coal has an average insitu energy content of 16 MJ/Kg (arb), and an average ash content of 20% (arb) and appears consistent throughout the tenement. As per the second paragraph, this initial area may well, as reported by Xenith, be one of many such areas across the Sargon tenements.

Exploration within the Sargon target area for this year is due to be completed within a week or so and as such the final data, including laboratory analysis and reports will take time to be completed. This final JORC Resource report is likely to be available in late October 2009.

To place this JORC compliant resource in perspective 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 whole life of the Gorgon Project.

Insitu coal in various operations within Australia and overseas, suitable for UCG, have yielded a potential range of recoverable energy of some 50.0% - 58.0 % plus.

Eneabba Gas is focused on the development of the 168MW gas-fired Centauri 1 Power Station on Company-owned land near Dongara in the Mid West of Western Australia. Eneabba Gas proposes to market power from Centauri 1 to the fast growing Mid West region of Western Australia.