Company Information for European Gas Limited

ASX-EPG

www.europeangas.fr

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Company Statement

European Gas Limited is a hydrocarbon producer/developer/explorer with projects in Western Europe. The strategy of the company is to develop Coal Bed Methane and Coal Mine Methane projects, in particular, in France where the company has major holdings under licence. The permit and application portfolio covers over 10,000 square kilometres in France, Italy and Belgium and contains the largest unconventional gas resources ever assembled in continental Western Europe.

Contingent resources have increased over eight fold to 8990 Petajoules (8.5 trillion cubic feet or 240 billion cubic metres) and work in progress will significant increase the company’s resource and reserve position.

The acquisition of Gazonor has launched the company into gas production which is sold principally into the French national pipeline network.

The western European natural gas market is substantial with advanced infrastructure, including extensive pipeline networks and a free and open market.

Operations and Technology

FRANCE

Gazonor
At the end of 2007, the company acquired 100 per cent of the issued capital of Gazonor S.A., a company incorporated in France (“Gazonor”). Gazonor was a wholly owned subsidiary of Charbonnages de France, the French state owned coal mining corporation.

Settlement of the purchase and handover occurred on 28 December 2007.

The purchase price for the Gazonor shares was €26.2 million (approximately A$43.7 million based on an A$/Euro foreign exchange rate of 1:0.60).

Gazonor is the owner of the Nord - Pas de Calais coal mine methane (“CMM”) production field and associated infrastructure situated in northern France.

European Gas is assessing several options for the continued development of the Gazonor assets.

Sud Midi
The French Government in July 2010 formally granted European Gas’s wholly owned subsidiary Gazonor a new exploration permit “Sud Midi”. The Sud Midi permit increases EGL’s portfolio and confirms its position among the largest CBM and unconventional gas permit holders in Western Europe. EGL has a 100 per cent working interest. This exploration permit is adjacent to EGL’s Gazonor Production concession, and together with the Valenciennois Exploration Permit, forms a contiguous permit area of 1,352 km2. The permit area covers 929 km2 and is located in the Nord Pas de Calais region.

Lorraine
The Lorraine Sud permit area covers the immediate southern extension to the Lorraine permit. The area contains several anticlinal axes which in places are at depths suitable for CBM development. Analysis of the structure as exhibited on the seismic data shows that there is strong horst/graben development which in turn should result in improved permeabilities in the coals and more importantly in the sediments. The area has excellent tight gas potential.

Lons Le Saunier
The Lons le Saunier applied permit area of 3795 km2, which was granted in July 2007, is centred on the township of Lons le Saunier, situated adjacent to the French-Swiss border.

The Jura Basin is potentially a substantial hydrocarbon province. The permit area covers the central part of the northeast - southwest oriented Basin which is approximately 250km in length with the width varying between 30 and 60 km.

Within the permit area, historical drilling and seismic work mainly completed from the 1950’s through 1980’s has demonstrated that the area contains significant hydrocarbon potential split into three target groups; CBM, conventional gas and conventional oil.

Gardanne
The Gardanne permit covers an area of 730 km2 and encompasses the coal basin and old workings of the L’Arc Basin, north east of Marseille. Historical coal production from the Basin is approximately 80 million tonnes of sub bituminous coal.

The coal-bearing sequence is up to 300 metres thick and contains up to 20 seams. The coal seams are Late Cretaceous in age. Available data has highlighted a considerable amount of methane within the coal mining complex. It is highly possible that the gaseous hydrocarbon present in the basin or at least a major part is being sourced from the underlying rocks. Mining records demonstrate that in some areas gas relief ahead of mining was undertaken successfully by drilling vertical holes from the surface.

In 2009, it is planned to drill at least one vertical appraisal well which if successful will be followed by at least two additional wells to form a pilot production pattern.

St Etienne
The Saint Etienne permit was granted in November 2004 and covers 563 km2 which includes the bulk of the Loire Basin, south west of Lyon. The Basin contains coal measures of up to 40 seams of Carboniferous age ranging in thickness from 1 to 15 metres. Historical production is approximately 600 million tonnes of bituminous coal with a long history of explosive methane being encountered during mining. Mine workings in areas of coal deposition are very extensive and comprise numerous shafts, development drives and extraction areas.

The area is mainly prospective for CMM production and to a lesser extent for CBM production due to the extensive nature of previous coal mining activity.

ITALY

Tuscany
Three permit areas covering 1,553 km2 in Southern Tuscany, Italy were granted during the 2007 financial year and are subject to the acceptance of submitted preliminary environmental impact studies. The permits are each for a period of six years and give the holder exclusive rights for the exploration for and production of hydrocarbons. All three areas are prospective for CBM.

BENELUX COUNTRIES

Benelux Joint Venture
During the 2008 financial year, the company entered into an agreement with Transcor Astra Group (“Transcor”), a subsidiary of Compagnie Nationale à Portefeuille S.A. (“CNP”) for the creation of a joint venture company (“Benelux JV”).

Benelux JV was created for the purposes of securing title, exploring, developing, extraction and marketing of hydrocarbons including coal bed methane, coal mine methane and conventional oil and gas within Belgium, The Netherlands and Luxembourg.

Benelux JV ownership is 50% European Gas and 50% Transcor, with European Gas as the operator.

Geographical Spread

Board of Directors and Key Management

Mr. Julien Moulin	Acting Managing Director
Mr. Rod Bresnehan	Non-executive Director
Mr. Sebastian Hempel	Non-executive Director
Mr Mark E Pitts	Company Secretary
Mr Nicolas Ricquart	General Manager
Mr Eric Allen	Head of Exploration

Company Address

47 Avenue de l’Opera
Paris, France 75002


Telephone:	+33 1 47 42 14 00
Facsimile:	+33 1 47 42 14 01
Email:	info[at]europeangas.fr
Website:	http://www.europeangas.fr

Additional Address/Key Contact

Operations Office
2 rue de Metz
Freyming-Merlebach
57800 FRANCE
Tel: +33 3 87 04 32 11
Fax: +33 3 87 91 09 97
E-mail: info@europeangas.fr
Website: www.europeangas.fr

Perth Office
Suite 4, 4 Ventnor Avenue
West Perth Western Australia 6005
AUSTRALIA
Telephone: +61 8 9226 0320
Fax: +61 8 9226 0309

Gazonor S.A. Office
Rue Ampère Billy-Montigny
62420 FRANCE
Telephone + 33 3 21 69 20 69
Fax + 33 3 21 69 20 70

Capital

Fully Paid Ordinary Shares on Issue 213,944,359

Major Shareholders

Merrill Lynch (Australia) Nominees Pty Limited	20.36%
Anz Nominees Limited	13.69%
Hsbc Custody Nominees (Australia) Limited - A/C 2	5.45%
Hsbc Custody Nominees (Australia) Limited	4.89%
National Nominees Limited	4.27%
Hsbc Custody Nominees (Australia) Limited-Gsco Eca	2.81%

Most Recent Statement

26/08/10 - Change in external auditors
26/07/10 - New Permit Granted in Northern France
08/07/10 - Appointment of New CEO and Managing Director
21/05/10 - Renewal of Exploration Permits
30/04/10 - March Quarter Activities Report
30/04/10 - March Quarter Cash Flow Report

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