Marion Energy Limited (ASX:MAE) Successful Placement Raises A$2.8 Million To Advance Rehabilitation Of Gas Wells

Melbourne, Feb 25, 2010 AEST (ABN Newswire) - Marion Energy Limited (ASX:MAE) (PINK:MAEJF) is pleased to announce that it has received commitments of A$2.8m for a placement (before costs) to a range of sophisticated and institutional investors. Participants in the Placement will also be issued with an option to subscribe for ordinary shares on the basis of 1 option for every share subscribed for in the Placement. These options will have an exercise price of 10 cents and a two year exercise period. Application will be made for all the options to be listed.

The shares and approximately 33% of the options will be issued in one tranche under the Company's existing 15% placement capacity under ASX Listing Rule 7.1 with the balance of the options to be issued subject to Shareholder Approval.

The placement was well supported by institutional and sophisticated investors in Australia, Asia and Europe.

Marion's Chairman Mr Gregory Harvey said that "the immediate and positive response from sophisticated and institutional investors is extremely encouraging as the Company moves towards increasing gas production at its Clear Creek and Helper Operations in Utah".

The proceeds of the Placement will now be used by the Company to advance the operational rehabilitation program that is currently being undertaken by the Company and led by Jay Stratton Jnr. This program has already successfully resulted in the re-commencement of clean gas flows and sales from the RR 2-20 well since mid December and commencement of well rehabilitation of the RR 13-17 well approximately four weeks ago.

Over the next month the Company will accelerate the well rehabilitation work program at both the RR 11-17 and RR 2-19 wells. Both of these wells have previously undergone extensive production testing achieving flow rates of over 5MMscf/day and 2MMscf/day respectively. First gas flows are forecast in the second half of April 2010 with first sales into the existing pipeline and gas distribution networks commencing at that time.

Management Changes

The Board of Marion also announces that Mr Jeff Clarke has advised the Board that he wishes to pursue other corporate interests and, as a result, moves to a consultancy position with Marion given his in depth understanding of the Company's assets.

Day to day operations of the Company will be the responsibility of the Chief Operating Officer, Mr Jay Stratton Jr., with his primary focus being the implementation of the multi well rehabilitation with the immediate aim of achieving daily gas production in the range of 15-20mmscf by the end of the 2010 year. Corporate management of Marion Energy Limited will be headed by current Executive Director and Company Secretary, Mr Peter Collery whilst corporate finances will remain the responsibility of Marion's Chief Financial Officer, Mr Karel Louman.

Contact

Australia Mr Peter Collery Executive Director & Company Secretary Ph: +61-3-8862-6466 Email: peter@marionenergy.com.au