SMEGSY GAS SALES AGREEMENT SIGNED

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SMEGSY GAS SALES AGREEMENT SIGNED Powered By Docstoc
					                               Enterprise Energy NL
                                     ACN 009 356 665
                                                                Level 11, 50 Pirie Street
                                                                Adelaide SA 5000

                                                                Telephone (08) 8231 4944
                                                                Facsimile (08) 8231 7233



                                ASX RELEASE
For Immediate Release
Thursday, 1 September 2005

Australian Stock Exchange Limited
Companies Announcement Office
Electronic Lodgement System

Dear Sir/Madam,


            SMEGSY GAS SALES AGREEMENT
                      SIGNED
      Enterprise Energy NL (ASX code: EPE) as a member of the Smegsy Block
      Joint Venture, wishes to advise that a Gas Sales Agreement has been
      successfully negotiated.

      This agreement, between the Smegsy Block Joint Venture parties and the
      South Australian Cooper Basin Producers (SACBP), is for the purchase of
      gas to be produced from the Joint Venture’s Smegsy-1 gas discovery well,
      located in PEL-106.

      The contract provides for the purchase of gas, liquefied petroleum gas
      (LPG) and condensate for a period of up to 3 years. Specific commercial
      details of the contract remain confidential. However, the contract does
      provide for flexible production as Smegsy is a single well head gas field.

      This is the first Gas Sales Agreement entered into by the SACBP for
      purchase of third party Cooper Basin gas. The agreement to purchase gas
      at Moomba makes it clear that junior explorers can discover and
      commercialize gas accumulations in the Cooper Basin.
       This contract creates a starting point for future negotiations that could be
       used for commercializing any further discoveries that are made. The Joint
       Venture parties are pleased with the contract terms and the outcome of
       negotiations has clearly demonstrated the sincerity of the SACBP to foster
       third party gas exploration within the region.

       The Smegsy Joint Venture parties expect contracts for the pipeline
       construction (which entails only a 4 km tie-in line) to be let within the next
       month and hopefully revenue from the first production to commence by the
       end of the year.

       The initial production into the pipeline from the Smegsy field will facilitate
       further testing and fine tuning to determine optimal flow rates, following
       which the Joint Venture will be in a position to forecast future revenue
       earnings from this gas production.

       Interests in the Smegsy Block Joint Venture are:

              Great Artesian Oil and Gas Limited                    75%
              Enterprise Energy NL                                  25%

       For further information or explanation please contact : -

       the undersigned at telephone                (08) 8231 4944

       or go to the Enterprise Web-site,           www.enterpriseenergy.com.au.



Yours faithfully


Warren C. Leslie
Managing Director