Echo Energy Regulatory News (ECHO)

12 Mar 2007 07:02

Independent Resources PLC12 March 2007 Independent Resources plc Strong estimate strengthens outlook for coal bed methane project Independent Resources plc ("Independent"), the AIM-quoted natural gas storageand exploration company, has received encouraging new resource estimates for itsItalian coal bed methane ("CBM") prospect at Fiume Bruna, north of Grosseto,central Italy. The results indicate the presence of a significant resource and that, under highcase assumptions, Fiume Bruna could contain up to 215 billion cubic feet ("BCF")of in-place methane gas. The estimates, which were produced by NorWest Questa Engineering ("NQE"), aleading US consultancy group with specialist CBM expertise, help supportIndependent's expectations that Fiume Bruna could become Italy's firstcommercial coal bed methane project. The results follow the completion late last year of a stratigraphic well thatcored approximately 7 metres of coal in one seam. Initial analyses of these coalcores show that, in the medium case, the resource tallies closely with theestimate provided at the time of Independent's admission to the AIM market in2005. The new analysis estimated the in-place CBM resource from the Fiume Bruna permitfor three cases, the sole variable between these cases being the gas content ofthe coal, and how this changes over the licence area. Case CBM resource (BCF) High 215Medium 161Low 107 Over the coming weeks additional coal analyses will be performed that shouldfurther refine these estimates of the CBM resource. Independent's next activities on the Fiume Bruna licence will start withacquisition of new seismic data, followed by a pilot drilling and productiontesting phase in the heart of the coal basin. The new estimates have been produced by NQE on behalf of Independent. NQE is aleading US-based petroleum engineering and geoscience consultancy group with astrong specialism in CBM. The above information has been reviewed and verified by Dr. Stephen Staley,Managing Director of Independent, for the purposes of the Guidance Note forMining, Oil and Gas Companies issued by the London Stock Exchange in March 2006.Dr Staley holds a BSc (Hons) in geophysics, a PhD in petroleum geology and anMBA. He is a Fellow of the Geological Society and a member of the EuropeanAssociation of Engineers & Geoscientists and the Petroleum Exploration Societyof Great Britain. For further information contact: Stephen Staley, Managing Director, Independent Resources plc: 01332 865 253 07771 838 753Allan Piper, First City Financial Public Relations: 020 7436 7486 Background details follow: Coal bed methane is almost pure methane produced directly from coal seams.Whilst many conventional oil and gas fields comprise trapped hydrocarbonsgenerated by coal deposits, producing gas directly from "in situ" coal is a verydifferent technical and economic proposition. Independent was provisionally awarded the "Fiume Bruna" exploration licence bythe Italian Government in June 2005. The licence covers an area of 267 km(2) andhas very light work commitments. Independent Resources holds 100% of thelicence, through its wholly-owned subsidiary Independent Energy Solutions srl. This information is provided by RNS The company news service from the London Stock Exchange