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ASX/Media Release                                                                          

2 July 2007

Grand Gulf Energy Limited (ASX: GGE) is pleased to announce that the Pate #5-18 in LeFlore County, Oklahoma was fracced on Wednesday 27 June and was turned into the sales pipeline on Friday 29 June at a rate of 1.3 mmcf/d (million cubic feet of gas per day) from the Spiro sand.

This rate is through casing and tubing will be run this week. A second sand, the Panola sand, will be perforated and fracced in one or two months and production flows will be commingled.

Two further wells are currently being permitted in LeFlore County, Oklahoma and are expected to be spudded within the next 30 days. Due to the forced pooling regulations in Oklahoma, Grand Gulf Energy is awaiting its final percentage in these wells and will announce more when its final percentages are fixed.

The pipeline is currently being laid at the ConocoPhillips #4 well in Louisiana and the well is expected to be turned into sales within 30 days.

The 13,700 ft 30 Bcf Catapult #1 prospect in Vermillion Parish, Louisiana, in which Grand Gulf Energy is earning a 3.75% interest by paying 5% of the well cost has now been permitted and a rig is being sourced with an expectation that the well will be spudded within 6 weeks.

Grand Gulf Energy Managing Director and Chief Executive Officer James Trimble said the flow rate at the Pate #5-18 was very pleasing and added to the existing production at the Reed #4-8 well.

These two wells together with the soon to come on line ConocoPhillips #4 and the wells to be drilled in the near future would ensure that Grand Gulf Energy would increase its production substantially in the second half of the year.

Grand Gulf Energy Limited (ASX:GGE) inadvertently stated that the name and code change date from Alto Energy International Limited (AOI) would be effective as of 29 July 2007 in its announcement of 28 June 2007. The date should have been 29 June 2007. The code GGE is already in effect.

For further information contact:

For more information visit www.grandgulfenergy.com

 ***

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