ATP 769P Awarded to Sunshine Gas

ATP 769P, covering approximately 4,780 square kilometers, has been awarded by the Queensland Government for 12 years commencing December 1, 2005.

The company considers that the permit, which is located adjacent to the Moura region, has significant coal seam gas (CSG) potential with prior testing having been carried out at Paranui.

Paranui, a small CSG pilot project carried out by Conoco in the late 1990's, is located within this permit (see map). Three CSG production wells were drilled, cased, cemented and fracture stimulated at Paranui. Flow testing was carried out and resulted in gas flows of ~200,000 cubic feet per day which is considered to be highly encouraging given the now outdated technology applied at the time.

Sunshine Gas is planning to drill in the permit in the middle of next year.

ATP 769P Interests: Sunshine Gas Limited (SHG) 100%

Sunshine Gas listed on ASX 3 July 2002 with a conventional gas, oil and coal seam gas focus initially on Queensland. More recently, the UK Continental Shelf has been added as a focus area.

The Company has interests in 16 Petroleum Leases (PL's) and 13 Authorities To Prospect for Petroleum (ATP's) in Queensland – including awarded permits and applications - covering an area of over 37,000 km2. In the UK Continental Shelf, the Company has a 50% interest in 9 blocks that are highly prospective for oil.

The Company has conventional gas / liquids reserves & production from the Roma Shelf as well as several projects in various stages of development. These projects are expected to lead to strong earnings growth in the future.