Drilling Update: Turkey (6118H)
01 June 2011 - 4:00PM
UK Regulatory
TIDMNGP
RNS Number : 6118H
Niche Group (The) PLC
01 June 2011
Embargoed: 0700hrs 1 June 2011
The Niche Group plc
("Niche" or the "Company")
Drilling Update: Turkey
Niche, the AIM listed investment company with interests in gas
exploration and development activities onshore Turkey, announces a
drilling update provided by Oman Resources in which Niche holds
loan notes convertible into a 35.7% shareholding.
Oman Resources has a 50% interest in four licences in Turkey in
partnership with Arar Petrol ve Gaz AUPAS (the "Operator"), in
which Niche is a 5% shareholder.
Block 4077 - Konya
-- Testing on Gulhanim-2 ("G-2") gas and oil discovery well to
commence imminently
-- G-2 contains three separate potential hydrocarbon-bearing
zones
-- Enzyme chemical compounds (designed to improve reservoir
conditions) are onsite - testing to begin shortly following
application of chemicals
-- Pilot gas bottling (CNG) plant being constructed and expected
to be ready to bottle gas for sale to enable rapid monetisation in
Q3
-- Onsite equipment will enable separation of oil for sale to
refineries
-- Construction of pipeline expected to commence in Q4 2011
-- On completion of testing of the G-2 well the rig will move to
Karapinar-2 for work-over operations
Block 4396 - Hatay
-- Hamam-1 well drilled to 855m - encountered three potential
gas bearing sands
-- Net pay of 15m between 642-777m in Miocene sandstones
-- Initial flow test on a 28/64 choke tested up to 3.5 million
cubic feet per day
-- Confirmed as a commercial gas discovery
-- Gas is sweet/dry composition with approximately 94-97%
methane
-- Initial test production has commenced at up to 100,000 cubic
feet per day for bottling onsite
-- Construction of pipeline tie-in expected to commence by Q3
2011
-- Strategy to develop field initially for shallow gas
production and ultimately to explore the deeper significant
potential for gas and oil
-- Scheduled to start Yesiltepe-1 well workover operations by
end of June
Block 4395 - Hatay
-- Drilling operations in Kastal-1 are underway to reach target
depth of 650m to test shallow gas potential
-- An additional gas potential zone encountered in Miocene
sandstones at 300m
-- Construction of pipeline tie-in expected to commence Q4
2011
-- Strategy to develop field initially for shallow gas
production and ultimately to explore the deeper significant
potential for gas and oil
Block 4394 - Hatay
-- Well to test Ayseler structure (target 1500m), previously
identified on seismic data, is planned for later in 2011
-- Testing of Cumalar-1A well is expected to commence Q1
2012
-- Strategy to develop field initially for shallow gas
production and ultimately to explore the deeper significant
potential for gas and oil
Competent Persons Report
A Competent Persons Report is currently being carried out by
Senergy across the three Hatay Blocks and Block 4077, and is
expected to be completed in June.
Nigel Little, Chairman of Niche commented,
"Having first invested in Oman Resources just twelve months ago,
it is a remarkable achievement to be producing, or about to
produce, from two wells on separate blocks. Oman Resources now has
both an immediate cash generative potential and, more importantly,
significant upside from further exploration, targeting both shallow
and deeper hydrocarbon bearing formations on all four blocks."
Enquiries:
The Niche Group plc
Nigel Little
Tel. +44 (0) 7900 888 810
M: Communications
Patrick d'Ancona or Ben Simons
Tel. +44 (0)20 7920 2340
Daniel Stewart & Co. Plc - Nominated Advisor and Joint
Broker
Oliver Rigby
Tel. +44 (0)20 7776 6550
Canaccord Genuity - Joint Broker
Charles Berkeley / Henry Fitzgerald-O'Connor
Tel: +44 (0) 20 7050 6500
Note:
The above information was approved by Enzo Zappaterra, Chief
Geologist of Oman Resources, who is a Fellow of The Geological
Society and a Certified Petroleum Geologist of the American
Association of Petroleum Geologists, Division of Professional
Affairs, with over 35 years experience in petroleum exploration and
management.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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