UK Gas Assets

HIGHLIGHTS

Shale Gas

RPS, an independent expert, reported the unrisked P90 Resource Volumes of Shale Gas in the Numurian Measures on 7 Petroleum Exploration and Development Licences (PEDLs) in South Wales in which Eden holds a 50% interest (covering a prospective area of 806 square kilometres) are:

Coal Bed Methane

RISC reports that estimated Gross Contingent Resources of Coal Bed Methane contained in the 10 PEDLs in South Wales (covering a prospective area of 247 square kilometres) in which Eden holds an interest are:

RISC, an independent expert, reported that the estimated Gross unrisked Prospective Resource of Coal Bed Methane contained in the 17 PEDLs in South Wales, Kent and Bristol Somerset (covering a prospective area of 1068 square kilometres) in which Eden holds an interest are:

UK Gas Market

OVERVIEW

Eden's UK gas assets, which comprise in total joint venture interests in 17 PEDLs and 100% interest in a further 3 PEDLs in South Wales, Kent and Bristol/Somerset covering a total area of more than 2,100 square kilometres (approximately 510,000 acres)


(Figure 1) and taking in very large portions of the coal fields and surrounding basins in these three areas of the UK.

INDEPENDENT REPORTS

Shale Gas- RPS

RPS has reported that the 806 square kilometres of the 7 PEDLs in South Wales where the Namurian Measures are interpreted as occurring (covering a prospective area of 806 square kilometres) contains the following estimated gas based on the Petroleum Resource Management System:

Unrisked P90 Resource Volume Estimates of Namurian Hosted Shale Gas:

These estimates were calculated by RPS:

Coal Bed Methane - RISC

RISC has reported that the 17 PEDLs in South Wales, Kent and Bristol/Somerset in which Eden holds an interest (covering a total area of more than 1,800 square kilometres and of which approximately 1315 square kilometres are prospective for coal bed methane) contain the following estimates:

Gross Contingent Resource of Coal Bed Methane in the 10 PEDLs in South Wales (covering a prospective area of 247 square kilometres) in which Eden holds an interest:

• A 1C to 3C range of 687-1,363 BCF with a 2C estimate of 980 BCF

Gross Unrisked (P90) Prospective Resources of Coal Bed Methane contained in the 17 PEDLs in South Wales, Kent and Bristol Somerset (covering a prospective area of 1068 square kilometres) in which Eden holds an interest are:

• A low to high estimate of 1903- 4,990 BCF with a best estimate of 3,088 BCF

RISC compiled these resource estimates based on the SPE PRMS definitions and guidelines. In doing so:

Eden's calculation of its share, based on percentage interests in each PEDL, in the total Coal Bed Methane resources detailed in the RISC report is:

• Gross Contingent Resource, with a 2C estimate -332 BCF

• Gross Unrisked (P90) Prospective Resources - a low to high estimate of 848 -2,271 BCF with a best estimate of 1,382 BCF

UK GAS MARKET

The reports from RPS and RISC follow the previously announced (Eden's ASX announcement 26 May 2011) public release on 23 May 2011 of a UK Government report that supported on-going shale gas drilling in UK.

The UK Government report states that in 2009, the UK total demand for natural gas was equivalent to approximately 100bcm, or 3.6 TCF. In this context, the estimated unrisked P90 Resource Volume of Shale Gas Initially in Place (GIIP) – 34.198 TCF, and estimated unrisked P90 Recoverable Volume – 12.799 TCF are very significant numbers.

The UK is now a net importer of natural gas and the price of natural gas in the UK is relatively high, and in 2009 the average industrial price of natural gas was 58% higher than in US. According to figures published by the UK Government (www.decc.gov.uk), the 2009 average industrial price of natural gas including taxes in the UK (in pence per kWh) was 1.78 whilst in US for the same quantity of gas the equivalent price was 1.12.

GLOBAL SHALE GAS ACTIVITY

Shale gas exploration and development has been increasing rapidly in many parts of the world, particularly in US. In Europe most activity has been in Poland to date.

Many of the major energy and resource companies have during the past five years acquired significant positions in shale gas exploration and production around the world and a number of multi-billion US dollar acquisitions have occurred over the past two or three years for large producing or advanced stage shale gas projects.

Most recently, BHP Billiton reported (bhpbilliton.com/bb/investorsMedia/news/2011) in February 2011 having acquired 100% of Chesapeake Energy Corporation's upstream and midstream Fayetteville shale gas interests in the US for US$4.75 billion. This included:

This represented a purchase price of US$1.77 per MCF (thousand cubic feet) for proved reserves or US$0.43 per MCF for total risked resources.

Whilst the Eden shale gas project is still in its very early stages, nevertheless the level of global interest in this sector is encouraging.

For the latest updates on the progress on this project please refer to the Company's latest announcements here.