Planet Gas Executes Native Title Agreements

Planet Gas Limited has executed native title agreements with parties that were laying claim to areas within the boundaries of PELA 514. This facilitates the issuance of the petroleum exploration license and subsequent commencement of fieldwork.

In August, the Company signed a Heads of Agreement with Senex Energy Limited. Under the executed agreement, Senex is to farm-in to PELA 514 and will assume Operatorship of the permit. Senex will fund 100% of the cost of three wells in exchange for a 50% interest in the northern and a 70% interest in the southern part of the license.

The northern area of PELA 514 adjoins Senex permits PELs 90, 100 and 110. The license area includes Birkhead time structures capable of hosting Birkhead channel oil plays such as those discovered at Growler and Snatcher. Oil discoveries in licenses neighboring PELA 514 also support the potential for hydrocarbons in the area.

The southern area of PELA 514 is prospective for unconventional gas, containing measures of coal, tight sands and the Murteree member of the REM shales. Significant thicknesses of coal in

the Patchawarra and Toolachee formations have been recorded from wells drilled adjacent to and within the PELA 514 permit boundaries. Small structural, and potentially large stratigraphic conventional gas prospects, are also mapped.

Recent tests by Beach Energy Limited, in the Nappamerri Trough, indicate that not only the Murteree shales, but also the Patchawarra, Epsilon and possibly the Toolachee formations are prospective for shale gas. PELA 514 is some 20 kilometers north of Beach’s successful Holdfast-1 shale gas well.