Last checked at 12 Oct 2010 08:43
12 October 2010
Independent Resources plc
("IRG" or "the Company")
Sidi Toui - 4 ("ST-4") Well Results
Independent Resources plc announces that the CTF Rig 06 has reached total depth in the Sidi Toui-4 ("ST-4") exploration well at 1603 metres (along hole measured depth, corresponding to a true vertical depth sub sea level of 1009 m). The ST-4 well was designed and successfully drilled as a deviated wellbore through the Upper Ordovician, penetrating 364m of the objective Bir Ben Tartar Formation at an average deviation angle of 77 degrees.
Although oil and gas shows were encountered in the Bir Ben Tartar reservoir unit, evaluation of the extensive logging suite acquired in the Ordovician section indicates that the oil saturation and reservoir fracturation is insufficient at the ST-4 location to justify fracture stimulation and testing of this well bore.
The well will now be plugged and abandoned, without testing, and the CTF Rig 06 will be demobilized.
The Oryx-1 and Sidi Toui-4 wells form part of the work programme that was agreed when Petroasian Energy Holdings Limited ("Petroasian") farmed into the permit. Petroasian is committed to finance all of the joint venture's work commitments in the current programme, including the drilling of these two wells, up to a maximum of US$14.5 million. On current best estimates, IRG expects to have to make a modest contribution to the overall cost of this two well exploration programme, of the order of US$185 thousand.
Executive Chairman Grayson Nash commented: "the ST-4 well had its share of operational difficulties and delays and this makes its outcome even more disappointing. However the extensive logging data collected in this well will now be used to analyze the remaining prospect inventory on the Ksar Hadada block. The joint venture will review all the data collected from the ST-4 and Oryx wells before making a decision on whether to extend operations on the block."
This announcement has been reviewed by Roberto Bencini, Technical Director of Independent Resources, for the purposes of the current Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in June 2009. Mr. Bencini is a chartered petroleum geologist. He is a member of the Society of Petroleum Engineers, the Geological Society of London and the American Association of Petroleum Geologists.
| For further information contact: |
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| Grayson Nash | Independent Resources plc | +39 06 4549 0720 |
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| Allan Piper | Tavistock Communications | 07736 064 982 |
| Simon Hudson |
| 020 7920 3150 |
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| Jonathan Wright | Seymour Pierce Limited | 020 7107 8000 |
| Stewart Dickson |
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Background details follow:
These operations follow the renewal of the permit for three years from 20 April 2008 and the previously-announced transaction involving PetroAsian. This transaction, which resulted in the current joint venture, removed IRG's commitments for the duration of this phase of the permit and allowed at least two wells to be drilled and significant new seismic data to be acquired. The block's Operator, Petroceltic Ksar Hadada Limited, has a 28.07% Working Interest, IRG holds an 18.97% Working Interest, and PetroAsian Energy Holdings Ltd a 52.96% Working Interest.
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. Across the border in Libya high oil production rates have been achieved on test from multiple Acacus wells, providing added attraction to the Acacus play on Ksar Hadada. In addition, significant shale oil prospectivity remains to be mapped and tested.
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 onshore Ribolla shale gas basin near 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.