Melbourne, Jan 6, 2009 AEST (ABN Newswire) - Marion Energy Limited (ASX:MAE)(PINK:MAEJF) respond to a second ASX Price Query in two months, 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:
RE: PRICE QUERY
I refer to your letter dated 6 January, 2009 regarding the change in the price of the Company's securities from $0.31 on 2 January, 2009 to a high of $0.45 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 continues to experience 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 announcements made to the ASX during the last two months. These highlighted the steady progress being made in the development of its two gas projects located in Utah, USA and for which the Gas Resource in Place and the 1P and 2P Reserves have been independently assessed by the independent consulting engineering firms of Ryder Scott Company, L.P. and William H. Cobb and Associates (Cobb). Ryder Scott completed the 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 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.
We have also noted that the prices for oil and gas commodities has strengthened considerably in the USA during the last two weeks and also that market interest in USA Oil and Gas companies has strengthened in this period as reflected by increased share prices.
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.
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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