Announcement

Monday, September 19, 2011

MEC Resources Study points to significant shale gas potential in Advent onshore fields

MEC Resources has provided the following advice from its investee company Advent Energy Ltd regarding its permits in the onshore Bonaparte Basin, Western Australia.

Advent has now completed an initial study of shale gas potential in EP386 and RL1. The results indicate significant potential upside in prospective shale gas resources for Advent with estimated unrisked OGIP for EP 386 & RL 1 in the range from 19 TCF to 141 TCF. The thickness of the prospective shale gas play varies from 300m to over 1500m.

The study key findings are

Multiple petroleum targets are present in EP 386 & RL1:

1. Proven conventional gas charged sandstone reservoirs in nearshore marine area of the Milligans Formation

2. Unconventional gas-condensate shale plays in the shallow marine areas of Lower Milligans Formation

3. Unconventional tight gas sandstone and limestone reservoirs in the Langfield, Ningbing & Cockatoo groups below the Milligans Formation

4. Lower Milligans Formation shale is prospective for shale gas play with considerably large upside potential

5. Marine shale with moderate organic richness: TOC of up to 2.2% from samples in wells within or in close proximity of EP 386. Higher TOC could be present in the deeper offshore area north & east of EP 386

6. Source rocks are mature for gas and oil generation: Ro range 0.44% to 2.42% & Tmax range from 430 to 480

7. Limited geochemical data indicates source rocks at depth shallower than c 1400 meters are mature for gas/wet gas and oil generating windows, but over mature and in the dry gas generating window at depth below 1400 meters

8. The thickness of the prospective shale gas play is varied from 300 meters to over 1500 meters. This would provide significant upside in prospective shale gas resources

9. Unrisked OGIP for EP 386 & RL 1 could be in the range from c 19 TCF to 141 TCF.

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