Drilling Commenced

5 Nov 2007 07:00

Spitfire Oil Limited05 November 2007 60 St James's Street, London SW1A 1LE, United Kingdom Telephone: + 44 (0)20 7629 7774 Facsimile: + 44 (0)20 7629 7773 COAL-TO-LIQUIDS CONVERTER DELIVERED RESOURCE DEFINITION DRILLING COMMENCED Spitfire Oil Limited ("Spitfire"or the "Company") is pleased to announce thatthe first-stage catalytic reactor, a purpose built vessel in which the L2Vpyrolysis reaction for converting lignite into fuel oil occurs, has beendelivered to the Company's hydrocarbon process contractor, the Centre for Fuelsand Energy at Curtin University of Technology in Perth. Drill core samples willbe processed through the reactor to determine optimal reaction conditions forthe lignite. In addition, the Company is further pleased to announce that it is about tore-commence drilling at its Salmon Gums project in Western Australia. TheCompany already has a JORC standard Inferred lignite resource of over 500million tonnes with an estimated extractable oil inventory of over 200 millionbarrels of liquid fuels. The drilling will focus on an extensive infilldrilling programme in 2008 and 2009 to further refine the current JORC resourceand a step out drilling programme to substantially expand the resource estimateand the recoverable oil inventory based on several unexplored zones identifiedrecently by the Company's consulting geologists, CSA Australia, after thecompletion of an airborne Electromagnetic (SkyTem EM) survey in October 2007. Chairman, Mr Mladen Ninkov, commented "with drilling recommencing at Salmon Gumsand the on time delivery of the reactor facility, the Company has made awonderful start on completing its feasibility study and thereby bringing thissignificant resource project into reality. This is even more pleasing with thecurrent world-wide demand for oil which is being reflected in an extraordinarilybuoyant oil price. This can be only be very good news for Spitfire shareholders". Further information Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7774Roger Goodwin - DirectorSpitfire Oil Limited Adrian Hadden Telephone: +44(0)20 7523 8350Collins Stewart Limited Spitfire Oil Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol SRO) The Company's news releases are available on the Company's web site: www.spitfireoil.com This information is provided by RNS The company news service from the London Stock Exchange