MEDIA RELEASE 11 SEPTEMBER 2006 PURE ENERGY LISTS ON ASX...

MEDIA RELEASE 11 SEPTEMBER 2006

PURE ENERGY LISTS ON ASX TOMORROW
AGGRESSIVE PROGRAM OF CSG RESERVE CERTIFICATION TO COMMENCE IN QLD AND TASMANIA

· ASX listing scheduled for 12.00hrs (AEST) on Tuesday, 12 September 2006.
· Pure Energy joins the growing coal seam gas sector in Australia following its oversubscribed public offer of 25M shares at 20 cents to raise $5 million.

· Aggressive programs of reserve certification to commence immediately in Pure Energy’s CSG portfolio in Queensland’s Bowen Basin and eastern Tasmania.

Brisbane-based Coal Seam Gas (CSG) company Pure Energy Resources Ltd – (“Pure Energy”) will make its debut on the Australian Stock Exchange at 12.00 hrs (AEST) tomorrow (Tuesday, 12 September) following its successful $5 million Initial Public Offer (IPO) which recently closed oversubscribed.

Pure Energy joins a growing list of emerging and mid-tier Australia coal seam gas companies, and is itself backed by Arrow Energy NL, Australia’s largest CSG company, as a cornerstone shareholder.

Pure Energy’s Managing Director, experienced international oil and gas executive Mr Steve Beardsall, said he was delighted to see the Company make its debut on the ASX with strong backing from both retail and institutional investors for its growth strategy in the rapidly growing coal seam gas sector in Australia.

“Because of its potential to meet a significant proportion of eastern Australia’s energy requirements, CSG is increasingly being embraced as a competitive alternative energy source, particularly against the backdrop of high oil prices and rising energy costs,” Mr Beardsall commented.

“Pure Energy has successfully assembled an attractive portfolio of CSG properties in Queensland’s Bowen Basin and in eastern Tasmania, and the funds raised through our IPO will enable us to pursue focused and intensive programs of reserve certification on these properties with a view to bringing them into production as rapidly as possible,” he added.

The Company’s project portfolio comprises five Coal Seam Gas permits in Queensland’s Bowen Basin (two granted permits covering 13,000km2 and three permit applications covering 4,900km2), and a single Coal Seam Gas permit in eastern Tasmania, covering 12,000km2. The Company was formed by a consortium of experienced oil and gas executives to target Australia’s emerging CSG market.

Both the Queensland and Tasmanian project areas are located in close proximity to existing infrastructure and growing energy markets. The permits are adjacent to established commercial CSG projects including CH4 Gas Ltd’s Moranbah Project, Santos’ Fairview Project, Origin Energy’s Spring Gully Project and Anglo Coal’s Moura Project, and are located close to the existing Moranbah and Gladstone Pipelines.

Arrow Energy, which took up a cornerstone $1 million seed capital investment in Pure Energy, also has the option to farm into two of its Queensland projects. Arrow holds a 14% interest in the Company, which could increase to approximately 25% on a fully diluted basis.

Pure Energy closed its offer last month following a strong response from investors. The Company lodged a Prospectus for the Offer of up to 25 million shares at 20 cents, together with 12.5 million free attaching options on the basis of one attaching option for every two shares issued. The Lead Manager to the raising and Pure Energy’s Corporate Adviser is boutique investment advisory group and specialist small-cap fund manager, Cygnet Capital.