On February 16, 2009 the Company advised the ASX that it had mandated Goldman Sachs & Co to commence a process that may possibly result in a sale of the Company and/or its assets. Since the Announcement the Company has already received inquiries of a preliminary nature from a number of industry parties. Once the updated Reserve Report (refer above) is available, Goldman Sachs will commence the formal process relating to this matter.
The December 2008 Quarterly Report for the Company contained a very comprehensive report on field operations that had been undertaken during the previous twelve to eighteen months. Despite the major challenges faced due to size and complexity of operations, in the December 2008 Quarter the Company reached a point where it was confidently able to state that its wells collectively had reached a level of operations at which they were capable of producing 5 million cubic feet of gas per day, that it would in the near term be able to sustain this level and increase it and that it remained confident of ultimately reaching its targets for production.
Since the last production announcement, the operating environment has remained challenging due to the impact of severe weather and necessary resultant infrastructure upgrades. This has resulted in significant downtime and which in turn significantly curtailed production during the period. All of the Clear Creek wells are currently being brought back onto normal production operations successfully with more sustained run time also now being achieved. Further updates will be provided as milestones are achieved and material information becomes available.
About Marion Energy Limited
Marion Energy Limited is following a low risk strategy of pursuing gas reserves and associated production in the Rocky Mountains and Mid-Continent regions. The Company's activities are generally within the geographic confines of or adjacent to known production and within easy access of existing pipeline infrastructure. We have been able to accumulate an enviable lease position where the company is undertaking a highly successful development drilling program.
Marion Energy Limited