a good move

Acquires balance of Petroasia Limited

Document date: Thu 09 Jan 2003 Published: Thu 09 Jan 2003 16:03:34
Document No: 230537 Document part: A
Market Flag: Y
Classification: Asset Acquisition
KALREZ ENERGY LIMITED 2003-01-09 ASX-SIGNAL-G

HOMEX - Perth

+++++++++++++++++++++++++
Kalrez today entered into an agreement, subject to proper execution
of legal documentation, with Petroasia Group Limited to purchase for
one (1) Australian dollar the outstanding balance (25%) of Petroasia
Limited, it does not own. This would make Petroasia Limited a fully
owned subsidiary of Kalrez.

In September 2000 Kalrez entered into a Sales Agreement with
Petroasia Group Limited to purchase 75% of Petroasia Limited for an
ascribed value (cash and shares) of approximately A$2.22 million
dollars. (Note Kalrez announcement 25th September 2000)

Petroasia Limited's only asset was, and still is, the LTS Gas Plant
originally from WAPET, Barrow Island, which was expected to spearhead
the Company into gas production plays in Indonesia, which to date
have not been successful.

The purchase of the 25% balance brings about corporate certainty to
the Company, as the September 2000 Sales Agreement had trigger
entitlement clauses within, which could have exposed the Company to
issuing 50 million shares at a deemed value of 3c, should even a
minor sale of parts of the gas plant took place.

The Company sees the present agreement as a prudent commercial
exercise.

E Smith
CHAIRMAN