Melbourne, Aug 26, 2008 (ABN Newswire) - Marion Energy Limited (ASX:MAE) advises that the drilling rig which will commence the recently announced infill drilling program at Clear Creek, Utah (ASX Announcement 13 August, 2008) is currently being moved to the drilling location and the Company is preparing to commence drilling operations.

The rig is currently being set up to commence directional drilling of the Oman 10-19 well to an approximate depth of 5700 feet and will test the Ferron sandstone reservoir as its primary target. This well is the first of a planned three well infill drilling program in the central part of the Clear Creek Unit acreage where several of the original wells were drilled in the 1950's and 1960's. A total of 17 wells were drilled in the Clear Creek Unit during that period and produced 126 Bcf of gas in total with well production rates averaging in excess of 3 million cubic feet of gas per day. This well will be the first well drilled in this part of the Unit by the Company.

The Company believes that because the original wells were drilled on 1000 acre spacing units substantial reserves are yet to be recovered from this part of the Unit. This drilling program will help to quantify the extent of reserves yet to be recovered.

Marion is currently in the process of undertaking an independent update of its reserves and it is important to drill wells in this part of the Unit to establish both the reserves to be recovered and importantly, to also better define the level of proved (1P) reserves in the Unit. Marion's proved and probable (2P) reserves at Clear Creek currently stand at 236 Bcf of gas. This program is planned to increase the 1P reserves by upgrading some of the 2P reserves to 1P and to also increase the aggregate reserves attributable to the Unit.

The Company is also planning to commence the recently announced drilling program at its Helper project in the near future.