Independent Evaluation of Hydrocarbons (8138J)
06 July 2011 - 4:00PM
UK Regulatory
TIDMNGP
RNS Number : 8138J
Niche Group (The) PLC
06 July 2011
Embargoed: 0700hrs 6 July 2011
The Niche Group plc
("Niche" or the "Company")
Independent Evaluation of Hydrocarbons
Niche, the AIM listed investment company with interests in gas
exploration and development activities onshore Turkey, has received
results of the first independent evaluation of the recoverable
hydrocarbons (the "CPR") within Oman Resources Ltd's ("Oman")
assets in Turkey. Niche holds loan notes convertible into a 35.7%
shareholding in Oman. The CPR was carried out by Senergy (GB) Ltd
("Senergy") across licenses AR/ARR/4077 ("Block 4077"), AR/ARR 4396
("Block 4396"), AR/ARR/4395 ("Block 4395") and AR/ARR4394 ("Block
4394") (together the "Licences") in which Oman has farmed in to a
50% working interest.
The CPR has shown:
-- Best estimate gross recoverable Reserves, Contingent and
Prospective Resources of 397.7 bcf (billion cubic feet) of gas
across the Licences;
-- Short-term ability to upgrade Contingent and Prospective
Resources to Reserves with the current ongoing drilling and testing
activity.
A summary of the CPR results is set out below:
Net to Oman
Gross Recoverable Recoverable
(Bscf) (Bscf) *
Reserves 2P 2P
30.8 12.6
Contingent Resources 2C 2C
140.7 57.3
Prospective Resources Best Best
226.2 92.1
Total Gas (Bscf) 397.7 162
* Net to Oman after deduction of Government Royalty of 12.5%
Hatay-4396
The CPR shows best estimate gross Recoverable Reserves of 30.8
bcf in Hatay-4396, relating solely to Miocene sand reservoirs
penetrated by the Hamam-1 and Yesiltepe-1 wells, with these wells
having successfully produced gas. The Hamam-1 well is currently
undergoing test production and is selling natural gas into the
local market.
The current programme envisions drilling a number of production
wells during the balance of the year into the Hamam and Yesiltepe
reservoirs to increase production and revenues.
Hatay-4395
Senergy has attributed only Prospective Resources to Hatay-4395.
However, following hydrocarbon shows in the Kastal-1 well, it is
anticipated that the Prospective Resources would be upgraded to
Reserves on testing of the well, which is expected to occur during
Q3.
Hatay-4394
Senergy has attributed only Prospective Resources to Hatay-4394.
Budgeted drilling and work-over operations in late 2011-early 2012
should enable substantially all the attributed Prospective
Resources to be upgraded to Reserves and Contingent Resources.
Konya-4077
The two most recently Arar-drilled wells on the licence,
Gulhanim-1 and Gulhanim-2 have both encountered hydrocarbons across
multiple horizons. The Gulhanim-1 well flowed gas and Gulhanim-2
flowed gas and oil to surface. Gulhanim-2 is currently being
cleaned up prior to being placed on production test. Senergy has
attributed Contingent and Prospective Resources to Konya-4077
including the Contingent Resources attributed to the historical
Karapinar-1 and Karapinar-2 wells after re-evaluating the electric
logs as a consequence of the positive results from Gulhanim-2
well.
In addition, Prospective Resources have been assigned by Senergy
to a number of untested fault blocks on the Konya structure. Future
exploration drilling will most likely provide an opportunity to
mature these Prospective Resources to Reserves and Contingent
Resources.
Nigel Little, Chairman of Niche, commented,
"This first independent assessment of the four blocks underpins
Oman's expectations of gas volumes across the acreage. The operator
is engaged in a work programme which should allow significant
upgrading of resources.
Niche has long been of the opinion that Oman's blocks, held in
partnership with one of Turkey's most established licence holders,
offer great potential for near-term gas production with significant
upside from further exploration."
Enquiries:
The Niche Group plc
Nigel Little or Alistair Stobie
Tel. +44 (0) 203 286 3350
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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