During the 2008 financial year, the company entered into an agreement with Transcor Astra Group (“Transcor”), a subsidiary of Compagnie Nationale à Portefeuille S.A. (“CNP”) for the creation of a joint venture company (“Benelux JV”).

Benelux JV was created for the purposes of securing title, exploring, developing, extraction and marketing of hydrocarbons including coal bed methane, coal mine methane and conventional oil and gas within Belgium, The Netherlands and Luxembourg.

Benelux JV ownership is 50% European Gas and 50% Transcor, with European Gas as the operator.

Subsequent to the end of the year, the Benelux JV applied to the Wallonia Government for a hydrocarbon permit “Hainaut” covering 443 km². The application covers the immediate southern extension of the Wallonia Coal Basin and historical coal mining region. The Basin is the eastern extension of the Nord Pas de Calais Basin in France in which the Company’s Gazonor project is situated.

The principal target for the Benelux JV is CBM and CMM.