Ausam Energy announces spudding of Loy Yang-2 well

CALGARY, Feb. 17 /CNW/ - Ausam Energy Corporation ("Ausam" or the"Company") is pleased to provide an update on its activities in Australia. Drilling has commenced on the Loy Yang - 2 exploration/commitment welllocated at PEP 166 in the Onshore Gippsland Basin in Victoria. The operator isPetro Tech, a subsidiary of Lakes Oil NL ("Lakes"). The drilling of the wellis expected to take approximately 20 days. Ausam has a 50% interest in PEP 166, an 877,000 acre permit. Ausam haselected to reduce its percentage interest from 50% to 25% in an 8,650-acreenvelope (the "Loy Yang Block") covering the Loy Yang Dome prospect inexchange for Lakes funding 100% of the costs to drill, fracc, test andcomplete the well. Ausam will retain its 50% interest in the remainder of PEP166. About Ausam Ausam is a public company trading on the TSX Venture Exchange under thesymbol AUZ. Ausam, through its Australian subsidiary Ausam Resources Pty Ltd,is engaged in the business of oil and natural gas exploration in Queensland,Victoria and Western Australia. Ausam is applying proven North Americandrilling and completion techniques that have not traditionally been used inthe Australian energy industry. Ausam's growth strategy includes the organicdevelopment of its current holdings and selective corporate transactions.Ausam presently has permit interests over approximately 3.4 million gross(2.1 million net) acres of exploration lands onshore Australia. The TSX Venture Exchange has in no way passed upon the merits of theproposed transaction and has neither approved nor disapproved the contents ofthis press release. The TSX Venture Exchange has not reviewed and does notaccept responsibility for the adequacy or accuracy of this release. This newsrelease may contain forward-looking information. Actual future results maydiffer materially from those contemplated. %SEDAR: 00008979EFor further information: Mark G. Avery, Chairman, President and CEO,
mavery@ausamenergy.com; Alastair J. Robertson, Chief Financial Officer,
arobertson@ausamenergy.com; Ausam Energy Corporation, 1430, 1122 - 4th
Street S.W., Calgary, Alberta T2R 1M1, Tel: (403) 215-2380, Fax:
(403) 206-1457, W