Echo Energy Regulatory News (ECHO)

21 Sep 2006 15:59

Independent Resources PLC21 September 2006 Additional data leads to re-appraisal of planned Tunisian drilling strategy AIM-quoted Independent Resources plc ("IRG" or "the Company") is pleased toannounce it has acquired additional seismic and geological data from itspromising Ksar Hadada oil and gas licence in Tunisia. As a result, it has decided to delay the start of drilling which - as announcedin its interim results for the period ended 31 March 2006 - was originallyscheduled for the current quarter, pending a reappraisal of the most appropriatedrilling strategy. The new data has been supplied by Tunisia's state oil company EntrepriseTunisienne d'Activites Petrolieres (ETAP). IRG holds a 40% stake in theexploration permit. IRG Chairman Grayson Nash said: "While it is disappointing that we cannot startas early as we would like with our planned well, we are delighted to havereceived new information that is providing a clearer picture of existing andpossible new prospects at Ksar Hadada. We are looking forward to re-appraisingthe best way forward, and hope to agree a new timetable without too much delay.We believe we have a highly prospective licence area and we are especially keen,in the current global environment of high drilling costs, to optimise anydrilling campaign." 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: The Ksar Hadada block covers an area of around 7,000 km(2), and contains ageological target that has proved very prospective in neighbouring Libya andAlgeria where several large oil & gas discoveries have been made (e.g. HassiMessaoud, Amal, Elephant, and Rhourd El Baguel.) The main prospect of interestremains the Sidi Toui structure. The production sharing contract (PSC) has a four-year exploration period fromApril 2004 and two possible extensions of three years each. The licensees areresponsible for 100% of costs during the exploration phase. All work commitmentsfor the first four years have already been met. The acreage was first explored in the 1950s, using the poor technology availableat that time. The Sidi Toui-1 well discovered oil and some oil stained coreswere recovered. A limited test programme was conducted on the oil leg. The SidiToui-2 appraisal well was dry. Subsequent seismic data showed both wells werepoorly located, having been sited using surface mapping and gravity data as wasprevalent in the 1950s. Recognising that this major structure had not been properly explored was thebasis for applying for the permit. In 2004 Petroceltic and its carried partnersdrilled the Sidi Toui-3 appraisal well but the Chinese rig was subject toscheduling problems and was available for a much shorter time than was planned.The well contacted few fractures and was only tested for a very short periodwithout the benefit of nitrogen lifting equipment to help stimulate the well.The well was suspended after a tiny amount of fluids had been produced duringthe very brief test. Before acquiring this additional data from ETAP, IRG had undertaken an intensivepost mortem with Blackwatch Petroleum Services and concluded that Sidi Toui- 3appraisal well was worth re-entering and re-testing. This information is provided by RNS The company news service from the London Stock Exchange