Enterprise Energy NL
ACN 009 356 665
Level 11, 50 Pirie Street
Adelaide SA 5000
Telephone (08) 8231 4944
Facsimile (08) 8231 7233
For Immediate Release
Thursday, 1 September 2005
Australian Stock Exchange Limited
Companies Announcement Office
Electronic Lodgement System
SMEGSY GAS SALES AGREEMENT
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
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.
Warren C. Leslie