Melbourne, Nov 27, 2008 AEST (ABN Newswire) - Marion Energy Limited (ASX:MAE)(PINK:MAEJF) respond to an ASX Price Query, following an increase in the share price. Marion Energy Executive Director Peter Collery maintains that all information has been fully disclosed to the market and the increase in share price reflects investors' increasing awareness of the value of the gas assets and company production milestones.
The Response to the ASX Price Query is reprinted below:
I refer to your letter dated 27 November, 2008 regarding the change in the price of the Company's securities from $0.19 on 26 November, 2008 to a high of $0.255 today and reply to your queries as follows:
1. The Company is not aware of any information that has not been announced which, if known, could be an explanation for recent trading in the securities of the Company.
2. The Company has noted a recent increase in the level of interest in the Company and its activities from the wider investment community which we assume to be as a result of a number of recent announcements to the ASX which have highlighted the following:
- ASX Release dated 3 November, 2008 which announced that the independent consulting engineering firms of Ryder Scott Company, L.P. and William H. Cobb and Associates (Cobb) have concluded their preliminary analyses of the Company's non producing Gas Resource in Place from its coal and shale assets at its Clear Creek and Helper projects in Utah, USA. The Gas Resource in Place has been estimated at 33.5 trillion cubic feet (Tcf) of gas and based on management estimates of recovery factors, the recoverable gas is estimated at between 2.4 and 4.3 Tcf of gas. In addition, the Company has 312 billion cubic feet (Bcf) of 1P and 2P gas reserves in its conventional reservoirs at Clear Creek as assessed by Cobb in June 2007.
- ASX Release dated 13 November, 2008 which announced that the Company had reached the production milestone of in excess of 5 million cubic feet of gas per day from its projects with an ultimate production target of 20 million cubic feet of gas per day from its current and completed wells.
- ASX Release dated 14 November, 2008 which advised that the drilling of the Oman 10-29 well at Clear Creek had reached total depth and that completion and testing operations would commence once the drilling rig was moved off location.
- ASX Release dated 17 November, 2008 which advised of the purchase by a Director of 500,000 shares in the company.
3. Apart from possible interest caused by the above factors, we have no other explanation for the price change.
4. We confirm that the Company is in compliance with the listing rules and in particular Listing Rule 3.1.
Yours sincerely
Peter Collery
Director and Company Secretary
Contact
North American Contact:
Mr Jeff Clarke
Managing Director & CEO
Ph: +1-214-244-7690
Email: jclarke@marionenergy.com
Australian Contact:
Mr Peter Collery
Executive Director and Company Secretary
Ph: +61-3-8862-6466
Email: peter@marionenergy.com.au
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