Sydney - Real Energy Corporation Limited (ASX: RLE) ('Real Energy'), an Australian east coast focused gas company with interests in the Surat and Cooper Basins, is pleased to report that it has commenced site preparation and is mobilising equipment for Venus 1 well.

The commencement of Venus 1 drilling of is expected take place next week. After reaching total depth, the plan is to case and suspend the well then demobilise the rig. Shortly afterward, a coil tubing will be mobilized and utilised to run a reservoir enhancement program. After the enhancement, the well will be set up as the first pilot production well for a controlled drawdown production testing which will continue into early 2021. The production testing is designed to prove initial gas breakout and increasing gas flows over the controlled draw down period as required to model and predict future gas flow rates and potentially commercial gas flow rates.

The results of the production test will also be used to decide to either expand the pilot or, if commercial flow rates are achieved, commence an aggressive appraisal program designed to certify sufficient reserves to for the Project Venus JV to secure gas sales agreements to allow for commercial field development.

About Project Venus

The 154 km2 Project Venus (Strata-X 50%/Real Energy 50% JV) is located within the Walloon CSG fairway in the Surat Basin. An independent expert has certified, on a best estimate basis, a Prospective Gas Resources of 658 Bcf (694 PJ). Given the location of this tenement immediately adjacent to gas infrastructure and within a proven giant gas fairway, the Venus Project offers the potential to achieve early cash flows. As announcement on 15 July, Strata-X Energy and Real Energy have agreed, subject to shareholders approval, to merge and rename the merged company Pure Energy. Post the merger, Pure Energy will have 100% of Project Venus.

Contact:

Scott Brown

Tel: +61 2 9955 4008

Web: www.realenergy.com.au

About Real Energy Corporation

Real Energy is an Australian east coast focused gas company with interests in the Cooper Basin, Australia's most prolific onshore producing petroleum basin, and the Surat Basin in Queensland. Real Energy has 100% ownership in 2 large permits in Queensland - ATP 927P & ATP1194PA, and a 50:50 JV with Strata X Energy Limited (ASX: SXA) to develop the 154km2 ATP2051 permit in the Surat Basin as a Coal Seam Gas project. The Company is also looking to develop a Hydrogen Project in Queensland.

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