re: Ann: GRK: Lawford 1 in Canning hydrocarbo... HIGHLIGHTS FROM...

re: Ann: GRK: Lawford 1 in Canning hydrocarbo... HIGHLIGHTS FROM TODAY'S ANNOUNCEMENT

NSE'S FIRST DRILLING ACTIVITY IN 3 YEARS

The deepening of Lawford #1 will mark NSE's first drilling activity in Australia in almost three years and is the first activity testing a prospect with significant unconventional hydrocarbon potential.

Significant exploration activity including the drilling and appraisal of numerous wells is scheduled to be undertaken on this emerging play in 2011 and 2012.

INTERESTS IN EP-417 PERMIT

NSE: 50%
BRU: 35%
GRK: 15%

DRILLING SCHEDULE & PROCESS

- Century Rig #7 secured for Lawford #1 well drilling campaign commencing in September.

- Deepening of the well will take 2-3 weeks to reach the revised target depth (TD) of approximately 2,800m.

- Buru will operate the rig for the deepening of the Lawford #1 well, providing the intellectual property and experience recently gained from the company's successful Yulleroo #2 and Valhalla #2 wells, which also targeted the Laurel formation.

- Lawford #1 was partially drilled to a depth of 1,325m metres by New Standard and Buru in late 2008 but the onset of the wet season in the Canning Basin prompted the drilling partners to suspend operations.

HIGH CHANCE OF SUCCESS

Buru's recent Laurel formation exploration success provides promising signs.

"The Laurel formation's geological and geophysical indicators for unconventional gas have been enhanced by recent drilling and testing programs undertaken at Yulleroo 2 and Valhalla 2 so we are very pleased to be able to revisit Lawford #1 on the back of having significantly expanded our Laurel Project footprint," Mr Willis said.

HIGH CHANCE OF SUCCESS

- Primarily targeting the tight gas sands and shales of the Laurel formation within a large conventional structure with the potential host significant quantities of hydrocarbons.

- Both unconventional and conventional hydrocarbons targeted in well deepening

"The major target horizons in the well are the lower Anderson sands and the tights sands and shales of the Laurel formation. The primary objective of the well is to encounter to Laurel formation and obtain sufficient information from logging and coring of this formation to ascertain the potential for these sands and shales to host significant quantities of hydrocarbons."

EXPECTATIONS

- New Standard does not expect hydrocarbons to flow freely from these formations but in the event encouraging results are evident, the joint venture has the ability to test any zones of interest.

- Results from the drilling, coring and logging of the Lawford #1 well will be used to formulate any subsequent reservoir analysis and testing program and will help establish the potential for hydrocarbon resources to be pursued further in the region.

- In addition to the unconventional resource play emerging in the region, New Standard estimates that Lawford #1 could also host in excess of 500Bcf of gas in place within the large conventional structure forming the Lawford prospect. Numerous other prospects that are also present across EP417 provide numerous large opportunities for New Standard to assess in the event the Lawford #1 results provide encouragement.

CASH ($450.000) FLOWS from GRK TO NSE AGAIN
The successful securing of Century Rig #7 also triggers the payment of a further $250,000 in back costs to New Standard by Green Rock under the terms of the EP417 farm-in agreement, with a further $200,000 becoming payable upon commencement of drilling at Lawford #1.


"The deepening of Lawford #1 will provide an exciting exposure for New Standard shareholders on multiple fronts and some positive results could provide the impetus for further work in the region," Mr Willis said.