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Bandanna Energy Limited (ASX:BND) Announces Approval Of Application For New Coal Exploration Permit In Bowen Basin

Friday May 15 2:47 PM

Brisbane, Australia, May 15, 2009 - (ABN Newswire) - Bandanna Energy Limited (ASX: BND.AX) is pleased to announce that its application EPCA 1189, through its wholly owned subsidiary Carnarvon Coal Pty Ltd, has now been approved by the Queensland Government authorities. The new permit, EPC 1189, is located in the southern Bowen Basin and is contiguous with EPC 1195 awarded to Bandanna in February 2009.

EPC 1189 covers an area of 230 km2 and lies approximately 75 km to the north of the township of Injune. The Charleville - Brisbane railway is located approximately 145 km from the EPC.

The permits, EPC 1189 and EPC 1195, are located in the southern Bowen Basin approximately midway between Blackwater and Roma. The area encompassed by these tenements has received very little attention from coal exploration companies in the past, although there is considerable geological and geophysical control available from exploration by petroleum companies. Review of historical data indicates that areas within EPC1189 that have the potential to contain Bandanna Formation coals in excess of 3.0 metres thick, and several areas, over which seismic data exists, indicate that the coal seams within the Bandanna Formation may lie at depths of less than 60 metres in some areas of the tenement, depths compatible for open-cut mining projects.

Bandanna is planning to undertake a reconnaissance drilling exploration program in the permits during Q3 of 2009.

About Bandanna Energy Limited:

Bandanna Energy Limited holds 11 Exploration Permits for Coal (EPC's) with applications for a further five (EPCA's), in the Bowen and Galilee Basins in Queensland. In addition the Company has conventional oil and gas exploration interests in the Cooper Basin of South Australia and Queensland and mineral exploration licences, primarily for oil shale in Queensland. Formerly known as Enterprise Energy Limited, in early October 2008 the Company completed a transaction involving the acquisition of the issued capital of Bandanna Coal Pty Ltd, a capital raising and a 1 for 10 share consolidation. The name change to Bandanna Energy Limited reflected the future emphasis on coal, the Bandanna Formation being a well known coal bearing geological unit within the Bowen Basin.

Contact:

Dr Ray Shaw
Managing Director
Tel: +61-7-3041-4400
Fax: +61-7-3041-4444
 

Source:

Bandanna Energy Limited

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