Echo Energy Regulatory News (ECHO)

23 Jul 2007 07:01

Independent Resources PLC23 July 2007 Independent Resources plc ("Independent Resources" or "the Company") Fiume Bruna results indicate 92 billion cubic feet of recoverable CBM resource Independent Resources plc, the AIM-quoted natural gas and exploration company,is pleased to announce its Fiume Bruna coalbed methane ("CBM") property innorthern Italy contains an estimated recoverable CBM resource of around 92billion cubic feet ("BCF"). The assessment follows independent analysis of coal samples recovered from astratigraphic well drilled in the licence area late last year. The new assessment, completed by Norwest Questa Engineering ("NQE"), found thatthe stratigraphic well penetrated coals which are gas saturated and contain awell-developed cleat system in the bright bands. Gas saturation and cleatingare conducive to CBM production. NQE is a leading US consultancy group with specialist CBM expertise. Based on the data assessed, NQE estimates the in-place CBM resource to be about170 BCF and the recoverable resource to be about 92 BCF. These estimates comparefavourably with those made in March of this year which quoted in-place resourcesof 107 BCF (low case), 161 BCF (medium case) and 215 BCF (high case). Independent Resources continues to plan for the acquisition of new seismic dataand drilling of the next well on the licence. It is intended that this well willbe put on long-term test to assess the production profile of the coals. Before either the seismic survey or the well can be carried out IndependentResources must gain the necessary environmental approvals. Because of the highquality of technical work undertaken by the Company, and its desire to involve awider range of interested parties, it has adopted the advice of the regionalauthorities to convert its already-submitted environmental application (an "RIA") to a fuller "VIA" application. Although this will inevitably be timeconsuming the Company believes it to be best approach in the long run. As before, the Company continues to engage with potential farm-in partners tothe Fiume Bruna project. The above information has been reviewed and verified by Dr Stephen Staley,Managing Director of Independent Resources, for the purposes of the GuidanceNote for Mining, Oil and Gas Companies issued by the London Stock Exchange inMarch 2006. Dr Staley holds a BSc (Hons) in geophysics, a PhD in petroleumgeology and an MBA. He is a Fellow of the Geological Society and a member of theEuropean Association of Engineers & Geoscientists and the Petroleum ExplorationSociety of Great Britain. For further information contact: Stephen Staley, Managing Director, Independent Resources plc: 01332 865 253 07771 838 753 Allan Piper, First City Financial Public Relations: 020 7242 2666 David Smith, Deloitte Corporate Finance (Nomad) 020 7007 8177 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 Resources was provisionally awarded the "Fiume Bruna" explorationlicence by the Italian Government in June 2005. The licence covers an area of267 km(2) and has very light work commitments. Independent Resources holds 100%of the licence, through its wholly-owned subsidiary Independent Energy Solutionssrl. This information is provided by RNS The company news service from the London Stock Exchange