Re Agreement

RNS Number:0876Z
Prometheus Energy Co
27 June 2007


                           Prometheus Energy Company
                        ("Prometheus" or the "company")


Prometheus signs California projects with planned capacity of 20,000 gallons of
                                  LNG per day


June 27, 2007


Prometheus Energy Company, an alternative and renewable energy company,
announces today that is has signed a contract with a large California-based
natural gas processing company to acquire gas from two locations in California.
The sources include a stranded low-Btu gas well in Merced County as well as a
number of low-Btu gas wells in Madera County, California. The gas contracted
from the two sources will collectively have the potential to produce 20,000
gallons per day ("gpd") of liquefied natural gas ("LNG") for distribution and
sale into the nearby retail markets in San Joaquin and Sacramento Counties.

The stranded well site in Merced County, which is planned for completion in the
first quarter of 2008, will produce up to 10,000 gpd of LNG from low-Btu gas
that is approximately 70% methane. On the site in Madera County, Prometheus'
initial plant will have the capacity to produce 10,000 gpd of LNG from this
low-Btu gas source, which is approximately 80% methane. While these initial
contracts are for 20,000 gpd, the Madera County site also contains enough gas to
provide significant additional capacity in the future as market demands
increase.

Kirt Montague, Prometheus CEO commented: "These are important agreements that
bring additional sources of supply for the production, distribution and sale of
LNG in California. The planned capacity, of a minimum of 20,000 gpd of LNG,
complements our existing landfill gas-to-LNG plant at the Bowerman Landfill and
our planned facility at Kiefer Road. Today's deals may also offer further
additional resources in the future."

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
Frederic Paternot
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 AIM.
It is headquartered in Seattle, Washington. Prometheus is a global alternative
and renewable fuel company, specializing 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 +1 206
267-0800 or at [e-mail]

Jefferies International Limited, which is authorised and regulated by the
Financial Services Authority, is acting for the Company and no other person in
connection with this announcement and will not be responsible to anyone other
than the Company for providing the protections afforded to customers of Jeff
eries International Limited nor for advising any other person on the contents of
this announcement or any matters described in this announcement.





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

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