Indus Gas Regulatory News (INDI)

10 Nov 2008 07:00



For Immediate Release 10 November 2008

Indus Gas Limited

("Indus" or "the Company")

Management Committee Approve SGL Reserves Upgrade

Indus Gas Limited (AIM:INDI.L), an oil & gas exploration and development company with assets in India, is pleased to report that the Management Committee of Block RJ-ON/6 (which includes the Director General Hydrocarbons, Government of India and ONGC) has upgraded the commercial scenario for the SGL gas discovery on the Block. 

Following the analysis of new 3D seismic data, which provided much better understanding of the discovery compared to previous 2D data, the Management Committee have approved an increase gross (100%) original gas in place (OGIP) estimate of 328 BCF, with "Proven plus Probable" well head gas reserves of 246 BCF. The previously approved OGIP and reserves were 238.76 BCF and 179 BCF respectfully. 

On a comparable basis, TRACS International in their competent person's report in the admission document dated 29th May 2008, used the DeGolyer and MacNaughton Independent Reserve Report figures of GIIP 256 BCF and reserves of 192 BCF. The new data used for the Management Committee upgrade have been provided to DeGolyer and MacNaughton for their review and consideration, and revised Independent Reserves figures will be announced in due course.

Ajay Kalsi, CEO commented:

"Our understanding of the Block continues to improve and I am pleased that our partners and the Government have approved these additional reserves based on new 3D seismic data. We shall continue our active drilling campaign and expand our seismic coverage of identified prospects and leads as we move existing discoveries towards production next year".

In accordance with AIM Guidelines, Paul Fink, Technical Consultant, a Geophysicist who hold an engineering degree from the Mining University of Leoben, Austria and has 18 years of industry experience is the qualified person that has reviewed the technical information contained in this release.

-ENDS-

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