Entek Energy Limited has received notice from the United States Department of the Interior -- Minerals Management Service, that its bid offered March 19, 2008 for Main Pass Area, South & East Addition, Block 252 (MP-252), has been accepted.

MP-252, located in 77 metres (253 feet) of water, contains a proven, but incompletely produced natural gas reservoir (El Capitan Prospect) at the relatively shallow depth of approximately 2,438 metres (8,000 feet), plus a second proven natural gas reservoir, but in this case never before developed, at approximately 2,103 metres (6,900 feet).

The Company's geological and geophysical consultant estimates recoverable proved, probable, and possible remaining reserves in MP-252 at approximately 45 BCFG from the incompletely produced reservoir, with a further 6.9 BCFG in the shallower undeveloped reservoir.

Entek is in the process of appointing a respected international petroleum reservoir evaluation consulting firm to evaluate MP-252 and independently certify the reserves quantities. This work is expected to be completed within 30 days.

Entek's Working Interest in MP-252 is currently 75% and therefore its portion of any and all future costs of drilling and production will be 75% unless the Company decides to modify its interest. Previous successful field drilling allows for a knowledgeable risk assessment for new drilling of MP-252 and the Company will incorporate this information into drilling and development decisions.

In-ground developed proven gas reserves in the Gulf of Mexico Outer Continental Shelf have traded in the recent past in the range US$2,500,000 to US$3,500,000 per BCFG.

The incompletely produced reservoir in MP-252 will require compression as part of any future redevelopment. Certified reserves quantities will therefore likely be valued in the lower half of this trading range.

Natural Gas spot prices at the Henry Hub transhipment point were traded at US$ 10.56 per MMBtu on April 22nd, 2008 and averages US$9,967 per MMCFG for the month of April 2008 to date.

Tags: Entek Energy Limited