OilVoice - European Gas Announces Resource Upgrade and Expansion of Lorraine Project, France

European Gas Announces Resource Upgrade and Expansion of Lorraine Project, France

Thursday, October 09, 2008

HIGHLIGHTS
• Coal bed methane Contingent Resources upgraded and expanded to 2010 Petajoules (“PJ”) (1899 billion cubic feet (“Bcf”) or 54 billion cubic metres (“Bm3”)).
• The Contingent Resources estimate is a 92% increase over previous Gas in Place estimates.
• The Contingent Resources lie within the company’s Lorraine permit areas covering 20% of the Company’s permit and application areas in the north eastern region of France.

RESOURCES EXPANSION
European Gas Limited (“European Gas” or “Company”) is pleased to announce the completion of estimates of coal bed methane (“CBM”) Contingent Resources within its 100% owned Lorraine project in north eastern France.

Recent work programs by European Gas have further delineated the extensive nature of the coal bearing sequences. Coupled with evidence of flow capability and adjacent coal mine methane production, the work programs have facilitated a comprehensive expansion of the resource areas. The Contingent Resources are contained within the eastern blocks of the Lorraine permit (Saint Avold and Alsting Development Areas). The whole Lorraine permit covers 460 km2.

The Contingent Resources exclude the Lorraine Nord application area (360 km2) while estimates for the Lorraine Sud permit (528 km2) are currently in process.

The Company expects the Contingent Resources estimates to significantly increase with the current assessment of Lorraine Sud permit and then with the granting of the Lorraine Nord application area.

The estimates were conducted by the European Gas technical group under Society of Petroleum Engineers (‘SPE”) and Petroleum Resource Management System (“PRMS”) guidelines. The study allows for the planning and commencement of moving the Contingent Resources to Reserve categories and the assessment of development and production options.