Bandanna Energy Limited (ASX:BND) Gas Analysis Results EPC891, Springsure Creek

Drilling Operations, Springsure Creek

Sydney, Mar 20, 2009 AEST (ABN Newswire) - Bandanna Energy Limited (ASX:BND) is pleased to announce that it has recently received encouraging gas content and composition information from their wholly owned Springsure Creek exploration project, EPC 891. Analysis by Geogas, the principal supplier of gas data to the Queensland coal industry, indicates low gas levels within the potential underground project area at Springsure Creek.

Detailed below, an average gas content of 2.51 m3 per tonne of coal within the target Aries 2 eam is reported. These results are encouraging because they indicate that for any future underground mine development a simpler and more cost effective ventilation design may suffice and that gas drainage in advance of mining may not be necessary.

Table 1: Gas content within the Aries 2 Seam, SPR009C, Springsure Creek, EPC 891.

---------------------------------------------------------------------Borehole GeoGAS  Client Seam Depth   Depth  Thick- Measured DensityNumber   Sample  Sample      from(m) to(m)  ness     Gas    Sample         Number  Number                            Content  ARD(g/cc)                                                   Qm(m3/t)---------------------------------------------------------------------SPR009C  SPR0001 3126   A2   295.11  295.90 0.79   2.42     1.39         SPR0002 3127   A2   295.90  296.67 0.77   2.20     1.36         SPR0003 3128   A2   296.67  297.45 0.78   2.93     1.31         SPR0004 3129   A2   297.45  297.90 0.45   2.49     1.67---------------------------------------------------------------------                  Average Gas Count                2.51

Gas compositional data is detailed below in Table 2. Following flushing with an inert gas, Geogas has determined methane content, within the single sample tested, of 96.8%. Of particular note is the absence of any hydrogen sulphide, a toxic gas commonly occurring within coal seams.

Table 2: Gas composition within the Aries 2 Seam, SPR009C, Springsure Creek, EPC 891.

----------------------------------------------------------Gas Composition Results----------------------------------------------------------Borehole GeoGAS  H2S       CH4/     CH4% CO2% N2%  InertNumber   Sample  Detected (CH4+CO2) Air  Air  Air  Gas         Number                     Free Free Free Flushed----------------------------------------------------------         SPR009C  SPR0001 No        0.98     96.8  1.9  1.4  Yes         SPR0002 No        0.99     66.8  0.6 32.6  No         SPR0003 No        0.99     70.1  0.7 29.2  No         SPR0004 No        0.98     58.2  1.1 40.7  No----------------------------------------------------------

Note: Non-inert gas flushed composition results overestimate N2 due to coal oxidation during testing.

Springsure Creek Coal Pty Ltd is in the process of completing a further 10 gas desorption holes, and expects completion of these by the end of the financial year. Drilling for geotechnical design purposes and further coal quality analysis is continuing.

Bandanna Energy owns 100% of Springsure Creek Coal Pty Ltd.

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