Australian Market Report of February 15: Petsec Energy - Announce Final Investment Approval For Oil Field Project In China

13:00 AEST Feb 15, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.

Sydney, Australia (ABN Newswire) - Petsec Energy Limited (ASX: PSA) said that the Company and its joint venture partners which includes China National Offshore Oil Corporation Limited (HKG: 0883) (NYSE: CEO) have approved the Final Investment Decision for the development of the 6.12, 6.12 South and 12.8 West oil fields in Beibu Gulf, China. The Project is estimated to be able to produce gross 2P reserves of 24 MMbbl of oil and the first oil production is expected before year end 2012. Development capital expenditure is estimated at US$300 million.

Hazelwood Resources Limited (ASX: HAZ), which has a majority stake in the ATC Ferrotungsten Project in Vietnam said that construction of the ferrotungsten refinery, which is the largest of its kind outside of China, is nearing completion. Commissioning activities are expected to commence during the current quarter. Hazelwood's 100% owned Big Hill Tungsten Deposit in Western Australia will be a source of feedstock for the ATC Ferrotungsten Project.

TNG Limited (ASX: TNG) will evaluate the potential for producing ferro-vanadium at its Mount Peake Iron-Vanadium Project in the Northern Territory after receiving outstanding results of the recent scoping study. The study suggests a 24-year mine life with an annual ore processing rate of 5 million tonnes. The Project is expected to generate strong financial returns, with average annual net cashflow after capital expenditure exceeding A$148 million.

Catalpa Resources Limited (ASX: CAH) has completed stage 1 drilling program and extended high grade gold zones at the multi-million ounce Edna May Gold Project in Western Australia. Latest intersections include 3.7 metres at 9.2 grams per tonne gold. Results from the stage 1 drilling program will be included in an update of the Underground Inferred Mineral Resource of 660,000 tonnes at 9.1g/t for 195,000 ounces of gold planned for March quarter 2011. Accelerated drill programs are scheduled throughout 2011.



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