GULF OF MEXICO: TEXAS STATE OFFSHORE AREA

HIGH ISLAND 24-L GAS PRODUCTION         

Entek Energy holds a 5% Working Interest in High Island 24-L gas production,
which commenced on 18 October 2007.

Gas production is from two wells on adjoining blocks connected by an 8 inch pipeline and conveyed from the main platform via a 10 inch pipeline to a gas sales line.

The Company’s initial revenue stream from High Island 24-L is forecast at A$5.7million to A$7.2 million annually after operating costs and royalties.

Entek has received payment of US$492,426 (equivalent to A$551,738) as its net revenue share for gas and liquids produced during November 2007 from the HIGH ISLAND 24L gas field operation. The sale of gas from High Island 24-L production has historically brought the Company in the region of US$1 /mcf over the prevailing market gas price.

Entek (ASX code: ETE), holds a 5% Working Interest in the following contiguous 720-acre blocks in Texas State waters in the Gulf of Mexico:

• No. M-106410, High Island Block 24-L (S/2 SW/4) – First discovery well
• No. M-107044, High Island Block 24- L (N/2 SW/4) – Second well
• No. M-107045, High Island Block 25- L (S/2 SE/4)
• No. M-107046, High Island Block 32- L (N/2 NW/4)

The first discovery well, High Island 24-L (S/2 SW/4) #1 flow tested at 47.5 MMscfD.

This was followed by an equally successful development well confirming the structure extent.

The second well, High Island 24-L (N/2 SE/4) #1, located approximately 1,090m north west, flow tested at 50.5 MMscfD.

Summary of the two discoveries:

For further information see the following Company Announcements:
Gulf of Mexico Production Commencement  - 23 October 2007

High Island Production - 19 December 2007
High Island Production Update - 8 February 2008

        Key:   MMscfD = Million standard cubic feet per day

                   BCPD = Barrels of Condensate per day

                   psi = Pounds per square inch