Apollo Energy III

RNS Number:1574I
Prometheus Energy Co
21 November 2007



FOR IMMEDIATE RELEASE





                           Prometheus Energy Company

                        ("Prometheus" or the "Company")



  Prometheus announces acquisition of remaining membership interest in Apollo
                                Energy III, LLC


November 21, 2007


Prometheus Energy Company, an alternative and renewable energy company,
announces that it has purchased the 50% membership interest in Apollo Energy
III, LLC ("Apollo") owned by Montauk Energy Capital, LLC ("Montauk"), making
Apollo a wholly owned subsidiary of Prometheus. Apollo owns and operates a
landfill gas to liquefied natural gas (LNG) production facility currently being
commissioned at the Frank R. Bowerman Landfill in Irvine, California.


The transaction results in Prometheus obtaining full control of Apollo and
improves the terms of the fuel supply agreement to the Bowerman plant in
exchange for a reduction in the maximum potential quantities of gas available to
Apollo. Under the new arrangements, Montauk's subsidiary, GSF Energy, LLC, will
supply sufficient landfill gas for full production of the 5,000 gallon per day
unit currently being commissioned at the site, with an option for further gas
supply that will allow production of up to an additional 3,000 gallons per day
from the same unit.


Consideration given in exchange for the membership interest consisted of
$125,000 in cash, a one-year note issued by Apollo for the amount of $725,000
and 1,285,000 common shares of Prometheus. The note bears an interest rate of
10.5 percent per annum, payable monthly in arrears. Principal payment of
$125,000 is due on December 1, 2007 with the remainder due at maturity. The
ordinary shares part of the consideration will be issued to Montauk out of
treasury, so the issued and outstanding share capital of the Company will remain
59,961,478 shares.


Montauk and Prometheus intend to maintain their business relationships,
partnering where their respective capabilities offer mutual benefits.


Kirt Montague, Prometheus' Chief Executive, said: "We appreciate Montauk's
continued interest in our success, demonstrated by them moving a portion of
their investment into Prometheus common stock. We look forward to working with
Montauk in other mutually beneficial opportunities that may arise in the
future."



ENDS



This press release does not constitute an offer for the sale of securities in
the United States. Prometheus' securities are restricted under US securities
laws and may not be offered or sold in the United States absent a registration
statement or a valid exemption from registration.



For further information:

Prometheus Energy Company                               [phone]
Kirt Montague (Chief Executive Officer)
Jeff Spencer (Chief Financial Officer)

Jefferies International Limited                         [phone]
Charles Cameron
Oliver Griffiths

Cubitt Consulting                                       [phone]
Simon Brocklebank- Fowler
Michael Henman
Allison Reid





Notes to Editors


Prometheus Energy Company is a public corporation with its shares traded on the
London Stock Exchange's AIM market. It is headquartered in Seattle, Washington.
Prometheus is a global alternative and renewable fuel company, specialising in
the production, distribution, and sale of liquid natural gas (LNG) from low-cost
waste and stranded sources of methane. The Company is an emerging leader in
distributed fuel production, integrating small-scale purification and
liquefaction systems that generate fuel near the end-user. For more information
concerning Prometheus please contact us at [phone] or visit
www.Prometheus-Energy.com.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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