Shell to Spud Palta Well within Days, WHL Says (Australia)

In response to numerous shareholder and market enquiries and continued speculation, WHL Energy Ltd is providing an update on activities related to the WA‐460‐P exploration permit in which the Company holds a 33.3 per cent interest.

Industry reports and field monitoring anticipate that the Palta‐1 exploration well, located in adjacent Exmouth sub‐Basin permit WA‐384‐P, will spud within the next seven to eight days.

Semi submbersible drilling rig, “Noble Clyde Boudreaux” ‐ which has been contracted by Shell to drill a test of the large Palta prospect ‐ is currently under tow and heading to the Palta‐1 site with two contracted support vessels.

Palta‐1, which is expected to take approximately 60 days to drill in a water depth of 1350 m, is targeting the very large Palta prospect, estimated to contain upwards of 13.5 trillion cubic feet (tcf) of gas if hydrocarbons are in place.

An estimated 2.5 tcf of the Palta gas is mapped by WHL Energy to be located within the WA‐460‐P permit, which was awarded to a consortium of WHL Energy, Strike Energy Limited and Cottesloe Oil & Gas Pty Ltd in November 2011.

“There is growing interest from the industry and investors in the start‐up of drilling at Palta ‐ recently reported to be potentially one of the most expensive wells drilled in Australian waters to date,” WHL Energy Managing Director, Steve Noske said.

Mr Noske added: “Thankfully for our shareholders, we are being taken along for this exciting ride at no cost.”

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Press Release, October 9, 2012