more good news for new float Anyone else got any?PURE ENERGY...

more good news for new float

Anyone else got any?

PURE ENERGY RESOURCES LTD STRENGTHENS ALLIANCE WITH LEADING CSG PRODUCER ARROW ENERGY NL


One of Australia’s leading Coal Seam Gas (CSG) corporations, Arrow Energy NL (“Arrow”) (ASX code: AOE) announced today its election to farmin into the CSG rights of Pure Energy Resources Ltd’s (“Pure Energy”) Queensland tenement ATP 759P.



Pure Energy’s Managing Director Steve Beardsall said the farmin with Arrow will assist in the development of ATP759P, one of Pure Energy’s largest Queensland tenements (6,207 km2), and strengthens its strategic relationship with Arrow, one of Pure Energy’s largest shareholders. The area is close to existing infrastructure and growing energy markets and adjacent tenements to the north are well established to be rich in both coal and CSG.


“Arrow brings proven Queensland development experience to the joint venture. It is a big step for Pure going forward”, he said.

Arrow recently completed a merger with fellow Queensland based company CH4 Gas Limited to become one of Australia’s largest independent corporations in that sector.

“Pure Energy’s key objective is to add shareholder value through the discovery and development of commercial deposits of CSG. This means progressing our most promising assets to production as soon as possible whilst at the same time maintaining a balanced portfolio of exploration, appraisal, and development of assets including partnering through joint ventures so that Pure can continue to grow while generating revenue,” said Mr Beardsall.


Under the Farmin Agreement, Arrow has an option to earn up to 50% interest in the CSG rights in the tenement. Arrow must spend a minimum $400,000 in the first year of the agreement for which Arrow will be entitled to a 15% interest. A further 15% interest may be earned by Arrow spending a further $850,000 during the second year of the agreement and a final 20% (total 50%) interest by spending an additional $200,000 during the third year of the agreement.

ATP759P is located in the Bowen Basin and is adjacent to established, commercial CSG projects such as Arrow/AGL’s Moranbah Gas Project which is connected to Townsville by a gas pipeline and reputed to be Australia’s largest coal seam gas producing project. The northern end of this project lies 40km to the west of ATP759P. Refer to Page 3-Combined Tenure Map of Arrow, CH4 and Pure Energy’s tenements.

Arrow also has the option to farmin to one of Pure Energy’s application tenements in Queensland-either ATP831P, ATP756P or ATP806P once their application is granted.

BACKGROUND


Pure Energy Resources Limited’s (ASX code: PES) ultimate objective is to become a leading CSG producer in Queensland, and the primary CSG producer in Tasmania.
Projects consist of five coal seam gas permits in Queensland’s Bowen Basin (two granted permits covering 13,000 km², and three permit applications covering 4,900km²), and a single coal seam gas permit in eastern Tasmania, covering 12,000 km². Both project areas are close to existing infrastructure and growing energy markets. Arrow holds 9 million shares and 9 million 30 cent options exercisable any time before 31 December 2008 in Pure Energy through a seed capital investment prior to Pure Energy’s recent IPO. Two Arrow nominated Directors are on the board of Pure Energy –Dr Robert Day who is the non executive Chairman of Pure Energy and a former director of Arrow together with Mr Shaun Scott, who is a non-executive director of Pure Energy and is the Chief Commercial Officer of Arrow.