ECHO.L Regulatory News (ECHO)

9 Jun 2009 07:00



Independent Resources plc

(the "Company")

Multi-well Funding for Ksar Hadada - Tunisia

The directors of AIM-quoted Independent Resources plc ("IRG" or "the Company") are pleased to announce the successful conclusion of a farm-out deal on their Ksar Hadada oil and gas exploration permit covering 5,600 square km onshore Tunisia (the "Transaction"). This follows the renewal of the permit for three years from 20th April 2008. The Transaction will remove IRG's financing commitments for the duration of this phase of the permit and allow at least two wells to be drilled and new seismic data to be acquired. 

As part of a joint farm-out with Petroceltic Ksar Hadada Limited, the Company's wholly-owned subsidiary Independent Resources (Ksar Hadada) Limited has farmed-out a 21.03% interest in the permit to PetroAsian Energy (Tunisia) Limited ("PetroAsian"), a subsidiary of PetroAsian Energy Holdings Limited. PetroAsian Energy Holdings Limited is a company listed on the Hong Kong stock exchange. In return, PetroAsian will pay all costs of drilling and testing two new exploration wells and the acquisition and processing of 100km of new 2D seismic data. It is planned to commence this work as soon as is practicable allowing for availability of rigs and other equipment and services. Independent Resources (Ksar Hadada) Limited will retain an 18.97% interest in the project.

The Transaction is subject to the receipt of the statutory approval of the Tunisian authorities, and the notification requirements of the Hong Kong Stock Exchange.

The primary targets on the Ksar Hadada block are Cambro-Ordovician quartzites and the Silurian Acacus Sandstone. Several large oil-prone prospects have been mapped; these are sourced by the Silurian Tanezzuft Shale, which is the main source rock for North Africa and the Middle East. Recent light oil discoveries in the Cambro-Ordovician immediately to the south of the block in the adjacent Remada Sud permit have now validated the potential of the Ksar Hadada prospects. Across the border in Libya very high oil production rates have been achieved on test from multiple Acacus wells, providing added attraction to the Acacus play on Ksar Hadada. 

IRG Director Steve Staley said: "We are delighted to have reached this agreement with PetroAsian. We share a common vision for this block and this is why PetroAsian is putting significant capital at risk to unlock its potential. IRG has stated it will focus its resources in Italy and this deal allows us to create potentially significant shareholder value whilst mitigating downside risks."

IRG was admitted to AIM in December 2005 and alongside its exploration interests in Tunisia is pursuing an integrated gas business in Italy which includes the Fiume Bruna and Casoni coalbed methane prospects on the north-west coast, and the strategically-positioned Rivara gas storage facility in the Po Valley. The company is focusing on developing both conventional oil and unconventional gas production, and building a profitable portfolio through wholly-owned initiatives and partnerships.

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