Melbourne, Oct 1, 2008 (ABN Newswire) - Marion Energy Limited (ASX:MAE)(PINK:MAEJF) is pleased to advise of the following Progress Report regarding the treatment of its Clear Creek, Utah wells to eliminate the formation of hydrates in the wells. The presence of hydrates and the steps being taken to eliminate them were advised to the ASX in an announcement dated 12 September, 2008.

HIGHLIGHTS:

- All four Ridge Runner (RR) wells at Clear Creek currently being treated with glycol/methanol with completion of process expected by end of this week

- Assuming treatment is effective, all wells will be gradually brought back onto production during next 2 to 3 weeks

- Early indications from treatment are positive but caution needed as it is too early to conclude treatments have been fully effective for all the wells. Some additional follow up treatment may be required.

DETAILS:

- RR 11-17 well. Treatment completed. Preliminary indications are treatment has been effective. Production has re‐commenced and will be very gradually brought back fully on line over next 2 to 3 weeks.

- RR 2-19, 11-20, 1-30 wells. Treatments to be completed by end of this week. Wells expected to be gradually brought back on line over next 2 to 3 weeks.

- RR 13-17 well. Treated with glycol (methanol not required). Well being gradually brought back on line over next 2 to 3 weeks.

- Alpine School District (ASD) 3-17 and 6-17 wells. Previously treated with glycol (methanol not needed), no evidence of hydrates, commissioning largely complete and wells expected to be brought on to full production over the next 6 weeks.

- RR 8-19 well. Fracture stimulation operations to commence once the treatment of all the RR wells for hydrates is complete. Well will be treated at this time to prevent hydrate formation.