Spitfire Oil Limited says that the first-stage catalytic reactor, a purpose built vessel in which the L2V pyrolysis reaction for converting lignite into fuel oil occurs, has been delivered to the Company’s hydrocarbon process contractor, the Centre for Fuels and Energy at Curtin University of Technology in Perth. Drill core samples will be processed through the reactor to determine optimal reaction conditions for the lignite.

In addition, the Company is further pleased to announce that it is about to re-commence drilling at its Salmon Gums project in Western Australia. The Company already has a JORC standard Inferred lignite resource of over 500 million tonnes with an estimated extractable oil inventory of over 200 million barrels of liquid fuels. The drilling will focus on an extensive infill drilling programme in 2008 and 2009 to further refine the current JORC resource and a step out drilling programme to substantially expand the resource estimate and the recoverable oil inventory based on several unexplored zones identified recently by the Company’s consulting geologists, CSA Australia, after the completion of an airborne Electromagnetic (SkyTem EM) survey in October 2007.

Chairman, Mr Mladen Ninkov, commented “with drilling recommencing at Salmon Gums and the on time delivery of the reactor facility, the Company has made a wonderful start on completing its feasibility study and thereby bringing this significant resource project into reality. This is even more pleasing with the current world-wide demand for oil which is being reflected in an extraordinarily buoyant oil price. This can be only be very good news for Spitfire shareholders”.

Tags: Salmon Gums, Spitfire Oil Limited