Company Information for Syngas

ASX-SYS

www.syngas.com.au

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ASX; SYS

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Company Statement

Syngas... Fuelling a Cleaner, More Secure Transportation Fuel Future

Syngas is an Australian oil and gas company listed on the Australian securities exchange (ASX: SYS). Syngas plans to establish a large scale, long life, ultra clean diesel production facility in South Australia generating significant returns at current oil prices and beyond. Coal, supplemented with non-food biomass to reduce carbon emissions, will be used as feed to the production facility, comprising the Clinton Project.

Operations and Technology

Flagship Project – Clinton Project, South Australia

Project Highlights:

1. Strong project development progress has been achieved:

Drilling program completed delivering a JORC classified coal resource totalling 558 mt
(273 mt Indicated and 285 mt Inferred) in December 2008;
Pre-Feasibility Study completed April 2009;
Agreements and relationships in place with core technology providers (gasification, gas/steam turbine, Fischer-Tropsch);
Bankable Feasibility study including environmental impact and engineering work underway; and
Access to additional Clinton coal secured June 2009, potentially extending project life and lowering operating costs.

2. Carbon Management options are being progressed:

Chaff and residual straw Memorandum of Understanding with local farmers group signed in May 2009; and
Plant carbon footprint review completed by independent consultants setting out benefits of carbon neutral/biomass use.

3. Increasing oil prices combined with premium prices for ultra clean diesel and increasing diesel import levels/increased local demand presents a favourable outlook for Clinton Project returns.

4. Highly attractive project location with existing installed infrastructure including rail line, roads and power network.

The Clinton Project is located approximately 120 km northwest of Adelaide city, in South Australia. The Project involves the development, commissioning and operation of a large scale, long life ultra clean diesel production facility. Syngas is targeting bringing the Clinton Project online in 2015 and operating it for 40 years. The Project has the potential to generate significant returns for shareholders over this time frame, within an increasing oil price context.

The Clinton Project's primary feed material is the Company's 100% controlled feedstock within Mineral Exploration License (MEL) 3896. This coal (lignite) feedstock is currently expected to be supplemented by non-food biomass sourced from surrounding wheat and barley growing areas, as part of the Company's carbon management strategy. Technically, the Clinton Project is what is called a Coal-Biomass-to-Liquid (CBTL) project.

Utlilising 285 mt of JORC classified resource.
Averaging 5.4 mt per annum of coal feed to plant.
Non-food biomass (chaff and residual straw) comprising a further 10% of feed.
1.14 tonnes of coal (lignite) yields 1 barrel of oil equivalent.
170 million barrels product over PFS base case of 33 years life.
Potential for over 40 year life and 200 million barrels production including extensions.
Operating cost of US$33/bbl (PFS base case) with potential to improve.

Additional Assets

Syngas’s granted mineral exploration licences (MEL 3896) covers an area of 288 km2 north west of Adelaide, over the known coal deposits within the Clinton Coal Measures which is located in the Northern St Vincent Basin Coalfields, north of the Gulf of St Vincent. Syngas also holds a granted mineral exploration licence (MEL 3585) over a 143 km2 area, south-east of Adelaide, covering the known coal deposit of Moorlands. Syngas also holds a petroleum exploration licence (PEL 219) over the Moorlands deposit and surrounding area. In September 2009 Syngas entered into a Joint Venture with Resolve Geo Pty Ltd over two mineral exploration licences (ELA 5210 and ELA 5212) covering a total area of 79km2 within the Gippsland Basin, a prospective coal area, in Victoria.

The Company has identified potential for a further, post Clinton Project CTL project in the Victorian Gippsland Basin Coal Fields. Further work to investigate this is to be undertaken.

Syngas is constantly looking for other opportunities to deliver the Company’s long term strategy of becoming a 30,000 bbl/d producer.

Geographical Spread

Board of Directors and Key Management

Managing Director	Merrill Gray
Chairman and Non-Executive Director	Phil Thick
Legal and Commercial Non-Executive Director	Ernest Boswarva
Company Secretary	Ian Gregory

Company Address

Suite 8, 1327 Hay Street,
West Perth, Western Australia, Australia WA 6005


Telephone:	+61 (8) 9226 4959
Website:	http://www.syngas.com.au

Capital

A$1.32 million cash in hand 1 October 2009 (September 2009 quarter end)

Annual General Meeting

17 November 2010, Adelaide, Australia

Year End

30th June

Major Shareholders

Shareholder	%
Swann & Jenkins Pty Ltd	15.60%
Viotek Pty Ltd	14.31%
Valentino Nominees Pty Ltd	3.42%
Citicorp Nominees Pty Ltd	3.26%
UBS Wealth Management Australia Nominees Pty Ltd	3.21%
Arredo Pty Ltd	3.08%

Most Recent Statement

23/11/09 - Rentech engaged for work on the Clinton Project
17/11/09 - Chairman`s Address to Shareholders
17/11/09 - AGM Presentation
17/11/09 - Results of Meeting
29/10/09 - Quarterly Activities and Cashflow Reports

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