FIN RESOURCES LIMITED — Capital/Financing Update 2009

Sep 10, 2009

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**Monitor

farms
in
to
Cooper
Basin
oil
and
gas
licence**

**Key

points:**

• Monitor
  Energy
  to
  acquire
  up
  to
  75
  per
  cent
  interest
  in
  Victoria Petroleum’s
  PEL
  115
  in
  the
  Cooper
  Basin;

• PEL
  115
  has
  two
  drill-­‐ready
  prospects,
  Fury
  (1.5
  million
  barrels recoverable
  in
  the
  Jurassic
  and
  22.79BCF
  in
  the
  Permian
  with
  additional oil
  potential)
  and
  Airacobra
  (1.28m
  bbls
  recoverable
  in
  the
  Jurassic);

• Monitor
  will
  fund
  the
  first
  well
  to
  earn
  37.5%
  at
  an
  estimated
  cost
  of A$2.0
  million
  (dry
  hole
  costs);
  and
  has
  the
  option
  to
  increase
  its
  earning to
  75%
  through
  funding
  the
  second
  well;

• Drilling
  of
  first
  well
  expected
  to
  commence
  mid-­‐October;

• NPV
  A$26M
  on
  the
  first
  two
  prospects
  and
  EMV
  A$66M
  on
  remaining identified
  leads
  and
  prospects.

• Capital
  Raising
  underwritten
  by
  Patersons
  Securities

Australian
based
resource
company
Monitor
Energy
Limited
(ASX:
MHL)
(“Monitor”
or the
“Company”)
is
pleased
to
announce
it
has
today
reached
agreement
with
Victoria Petroleum
NL
(ASX:
VPE)
(“Vicpet”)
to
acquire
up
to
75
per
cent
interest
in
Vicpet’s
Petroleum Exploration
Licence
115
(PEL
115)
in
the
onshore
Cooper
Basin
in
Australia.

Under the HOA, MHL will by paying 100% of the cost of the exploration well, Fury-1 earning a 75% interest in the 3D defined Fury Prospect and any associated Petroleum Production Licence, if granted post drilling, in the event of an oil discovery and the right to earn a 37.5% interest in all of PEL 115.

By paying 100% of the cost of drilling a second exploration well in PEL 115 on the Airacobra Prospect, MHL completes the earning of a 75% interest in all of PEL 115 and earns a 75% interest in the 3D defined Airacobra Prospect and any associated Petroleum Production Licence, if granted post drilling, in the event of an oil discovery. If the second farmin well is not drilled, MHL retains its earned interest in the Fury Prospect only.

**Net

present
value
(NPV)
=
A$26m
on
a
US$60
per
barrel
basis** .

35 Richardson Street West Perth WA 6005 Australia PO Box 1440 West Perth WA 6872 Australia Ph: +61 8 9211 1555 Fx: +61 8 9211 1500 ABN 25 009 121 644

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The
highly
prospective
licence
PEL
115
(266km[2] )
contains
within
it
two
separate production
licences
over
the
Mirage
and
Ventura
oil
fields,
located
in
close
proximity
to
the
first two
prospects:
Fury
is
located
9.5Km
from
Ventura,
4.4km
from
Mirage,
and
663m
up-­‐dip
of the
suspended
oil
well
at
Lightning-­‐1
drilled
in
2006,
and
Airacobra
is
located
2.9km
from
the Santos’
Narcoonowie
Field.

PEL
115
contains
30
follow-­‐up
oil
and
gas
prospects
that
have
been
valued
by
the Company
at
over
A$66M
estimated
market
value
or
EMV.
The
historical
exploration
success rate
in
the
Basin
is
45
per
cent.
PEL
115
is
surrounded
by
producing
oil
and
gas
fields,
thus increasing
the
chance
of
success.
( see
attached
maps)

A
drill
rig
is
available
and
can
be
mobilised
at
short
notice.
Drilling
is
expected
to
begin by
mid-­‐October
and
is
scheduled
to
take
approximately
two
to
four
weeks,
depending
on testing
and
completion. Vicpet
will
remain
the
operator
of
PEL
115
throughout
the
period
of
the
farm-­‐in
and
has a
solid
track
record
of
drilling
on
budget
and
on
time.

Monitor
Energy
Managing
Director,
Jon
Roestenburg
said
“The
farmin
to
PEL
115
is
an important
opportunity
for
the
Company.
Monitor’s
entry
into
the
Cooper
Basin,
the
preeminent oil
and
gas
producing
basin
in
Australia
is
in
line
with
our
corporate
strategy
to
develop
a diversified
energy
portfolio
including
near
and
long
term
conventional
oil
and
gas
production and
exploration,
uranium
and
unconventional
gas.
“

“We’re
excited
about
working
with
Victoria
Petroleum,
an
experienced
operator
and producer
in
the
Cooper
Basin,
and
the
recipient
of
the
RIU
Good
Oil
2009
Explorers
Award,
with gross
production
of
800+bopd,”
Mr
Roestenburg
said.

“PEL
115
is
a
well
established
area
with
high
oil
and
gas
production
potential
and
close to
the
Moomba-­‐Sydney
gas
pipeline
(MSP),
which
is
privately
operated
and
has
access
capacity in
the
event
of
a
commercial
gas
discovery.” The
MSP
is
a
2,029km
pipeline
delivering
natural
gas
from
the
Cooper
Basin
gas
fields
to New
South
Wales
and
the
Australian
Capital
Territory.

Monitor
and
Vicpet
are
also
in
the
early
stages
of
discussion
regarding
a
possible
farm-­‐in to
Petroleum
Production
Licence
213
(PPL
213),
which
includes
the
producing
Mirage
Oil
Field.

The
farmin
to
PEL
115
is
conditional
only
on
the
completion
of
due
diligence,
which
is expected
very
shortly,
and
the
completion
by
the
Company
of
appropriate
funding arrangements.

35 Richardson Street West Perth WA 6005 Australia PO Box 1440 West Perth WA 6872 Australia Ph: +61 8 9211 1555 Fx: +61 8 9211 1500 ABN 25 009 121 644

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Monitor’s
corporate
adviser,
Patersons
Corporate
Finance
is
assisting
the
Company
with a
fully
underwritten
capital
raising
associated
with
the
PEL
115
Project.
Details
of
the
Capital Raising
will
be
advised
in
due
course.

“This
farmin
significantly
enhances
our
asset
portfolio
which
includes
international
oil and
gas
exploration
licences
in
the
Kyrgyz
Republic.
As
well
as
its
conventional
oil
and
gas potential
the
Cooper
Basin
is
an
emerging
unconventional
gas
region
that
includes
coal
seam methane,
shale
oil
and
stratigraphic
accumulations.
The
Company’s
forward
work
program
will pursue
these
opportunities
in
the
near
term,”
Mr
Roestenburg
said.

For
more
information
please
contact: Jon
Roestenburg
BSc,
GBQ,
MLM,
CC Managing
Director Monitor
Energy
Limited Tel:
+61
8
9211
1555 Email: jon@monitorenergy.com.au

David
Tasker/
Adrian
Kwintowski Professional
Public
Relations Tel:
+61
8
9388
0944/
+61
433
112
936 Email:
david.tasker@ppr.com.au

**About

Monitor
Energy**

Monitor
Energy
Limited
(ASX:
MHL)
is
an
Australian
based
resource
company
with
high quality
petroleum
and
uranium
projects
in
Kyrgyzstan.

The
Monitor
Energy
petroleum
licences
totalling
over
6,000km[2] are
located
in
the
north of
the
country
adjacent
to
Lake
Issyk-­‐Kul
and
in
the
south
of
the
country
near
At
Bashi. Technical
work
on
these
licences
has
identified
gravity-­‐modelled
structures
at
depth,
oil
seeps and
coincident
magnetic
telluric
anomalies.

Early
generation
oil
wells
containing
oil
and
gas shows
were
drilled
off
structure
during
the
1960s
and
these
structures
are
an
integral
part
of the
Company’s
early
drilling
strategy
after
seismic
data
acquisition
and
interpretation.

The
uranium
licence
is
in
central
Kyrgyzstan
at
the
Kavak
Mining
centre,
on
strike
with high-­‐grade
deposits
mined
by
Russia
and
supplying
its
nuclear
industry
with
uranium
in
the
mid 1960’s.
The
latter
licence
area
is
known
as
the
Kashkasu
Deposit
and
is
the
focus
of
current fieldwork.

Website: www.monitorenergy.com.au

Person Compiling Information about Hydrocarbons

The
information
and
potential
reserves
within
this
announcement
are
compiled
by Mr
Jon
Roestenburg and
are
the
company’s
estimate
of
undiscovered
2P
reserves.
Mr Roestenburg
BSc.
GBQ.
MLM,
CC
is
the
company’s
Managing
Director
with
35
years
of
industry experience as
a
practicing
petroleum
geoscientist and
is
a
member
of
the
American Association
of
Petroleum
Geologists.

35 Richardson Street West Perth WA 6005 Australia PO Box 1440 West Perth WA 6872 Australia Ph: +61 8 9211 1555 Fx: +61 8 9211 1500 ABN 25 009 121 644

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Figure 1 PEL 115 licence area within the Cooper Basin and overlying Eromanga Basin, Australia

35 Richardson Street West Perth WA 6005 Australia PO Box 1440 West Perth WA 6872 Australia Ph: +61 8 9211 1555 Fx: +61 8 9211 1500 ABN 25 009 121 644

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Figure 2: Location map showing excised oil and gas producing licences (light hashed areas) in close proximity to PEL 115 exploration licence areas (in green).

35 Richardson Street West Perth WA 6005 Australia PO Box 1440 West Perth WA 6872 Australia Ph: +61 8 9211 1555 Fx: +61 8 9211 1500 ABN 25 009 121 644