EDEN INNOVATIONS LTD — Capital/Financing Update 2007

Apr 18, 2007

FOR IMMEDIATE RELEASE Thursday 19 April 2007

AUSTRALIAN FOCUS ON U.K. COAL BED METHANE

WITH MAIDEN DRILLING PROGRAMME IN WALES

An Australian company has embarked on its maiden international drilling programme to unlock Coal Bed Methane (CBM) resources in Wales, United Kingdom.

Eden Energy Limited (ASX code: "EDE") announced today it was mobilising a drill rig onto site between Cardiff and Swansea next week to commence the Company's first multi-hole CBM exploration programme in the South Wales region.

The UK gas objective was outlined in Eden's prospectus when the Company floated on the ASX last year. Its commencement will see a minimum of three holes drilled in Petroleum Exploration and Development Licence 100 (PEDL100).

Eden has interests in three licence areas covering 430 square kilometres in South Wales and all are close to high demand, high price gas markets and pipeline infrastructure. All of the acreage is effectively unexplored for coal bed methane gas, with the Australian explorer planning to drill each area during 2007.

"The UK energy market – is now annually a net importer of hydrocarbons – it has a strong natural gas price environment with prices higher than Australian prices." Eden's Executive Chairman, Mr Greg Solomon, said today.

"It also exhibits strong market fundamentals with a large population base generating both short-term major local customers and long-term opportunities," Mr Solomon said.

"Any successful commercial outcome will also meet preferred environmental guidelines for new energy projects in the UK – production of low carbon emission fuels and new gas supply sources which are low impact developments.

"Our maiden drilling objective in 2007 is to quantify the critical parameters of gas content and seam permeability needed to prove up the potential of methane volumes trapped in the coal seams."

Eden is earning a 50% interest in the coal bed methane (CBM) in PEDL100 from licence holder, Coastal Oil and Gas, a wholly-owned subsidiary of UK Onshore Gas Group.

Drill results will determine the location of Eden's first pilot CBM projects.

The first exploration well, Port Talbot 1, will be drilled 650 metres into the highly gaseous Westphalian coal seams of the South Wales Coal Basin, 220 kilometres from London. Significant coal seams intersections are expected between 350-640 metres.

The PEDL100 licence area hosts old mine workings and unworked coal seams occurring immediately under and/or adjacent to several large industrial plants, including a steel works, insulation manufacturer, paper mill and industrial estate.

"There are very significant amounts of coal remaining in PEDL100 and at optimal depth for CBM gas extraction, that are more than sufficient to underpin a number of individual CBM projects," Mr Solomon said.

The total Welsh drilling schedule, gas content analysis and in situ permeability testwork is expected to take until at least October this year.

"CBM has made enormous inroads in the past decade into gas supply worldwide, and accounts already for 10% of the US gas market," Mr Solomon said.

"In Australia, its impact as a new fuel source in Queensland is highly significant, as it is both replacing gas supply from dwindling conventional sandstone reservoirs, and fuelling new electric power generation plants.

"Eden Energy sees the UK has highly attractive for CBM projects as the region hosts favourable geology with a number of prospective coal basins, of which South Wales is possibly the most attractive".

"A planned major high pressure gas pipeline from the LNG terminal at Milford Haven in West Wales runs just to the north of Eden's licence area and there is already an extensive local gas pipeline infrastructure in place".

"Any CBM commercial developments there by Eden will enter a market where energy supply security is a strategic issue for the UK which has only limited storage capacity – about two weeks supply - for natural gas, and relies on European imports".

"Domestic gas projects which can value add to this equation, are attractive options for UK energy managers."

Eden has other interests in hydrogen storage and transport fuel systems, including the low emission Hythane® hydrogen-methane blend, conventional natural gas exploration assets in South Australia and low temperature pyrolysis research into hydrogen production and geothermal energy production.

MEDIA CONTACT:

Greg Solomon Eden Energy Ltd (08) 9282 5889 0402 060 000

Kevin Skinner Field Public Relations (08) 8234 9555 0414 822 631

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