Rift Helium Regulatory News (RIFT)

9 Jan 2007 07:00

Rift Oil PLC09 January 2007 For Immediate Release 9 January 2007 Rift Oil Plc Douglas Gas-Condensate Field : 2007 Appraisal and Development Strategy Rift Oil PLC (LSE : RIFT), is pleased to advise that the 2006 seismic data hasnow been processed and interpreted. It has confirmed drilling locations on thenorthern sector of the Douglas Gas Field and has also identified the nearby PukPuk Prospect as being a valid exploration drilling target of good size. Furtherspecialised seismic processing is now to be conducted to identify if it can beused to successfully predict the presence of hydrocarbons in reservoir elsewhereon Douglas and in the Puk Puk Prospect, as was the case at the Douglas-1 well. The field development options study, commissioned from Upstream Petroleum(recently acquired by major Norwegian oil services company AGR), was receivedand reviewed by the PPL 235 joint venture parties in December. It covers a rangeof technologies for commercialising the Douglas gas discovery, and identifiesseveral potentially economically viable options. Three of these options, twomajor longer term markets and another smaller scale but more immediatecommercialisation opportunity, are now being actively pursued by Rift as PPL 235licence operator. The forward plan for 2007 is to negotiate the principal terms and conditionsprecedent to commercialisation agreements, and to establish adequate gasreserves to support progressing the field towards commercialisation. Initially,this may require the drilling of two further wells - an appraisal well onDouglas North and an exploration well on Puk Puk, as well as the flow-testing ofDouglas-1. The joint venture owned rig which drilled Douglas-1 is beingmaintained in operational order on the Douglas-1 site, in preparation for thisnext phase programme. The rig has also been offered out for tender to otherresource companies, for drilling programmes which can dovetail with Rift's owndrilling plans. Non-Executive Chairman, Ian Gowrie-Smith said : "We are very pleased with boththe outcome of the seismic survey and the positive recommendations of theUpstream report. New technologies, combined with the advantageous location ofthe Douglas Gas Field with respect to access to regional markets, mean thatthere may be genuine opportunities to commercialise our discovery, completelyindependently of any other gas projects proposed in Papua New Guinea. We intendto aggressively pursue these opportunities during the coming year. Douglas wasthe first discovery made in Papua New Guinea under the new and more advantageousfiscal policy introduced in 2003, and we intend to be the first new field toachieve commercialisation." Peter Mikkelsen FGS, AAPG, as the qualified non-executive Director has reviewedthis statement and authorised its release. For further information please contact: Rift Oil PLC 020 7340 9970David Lees, Finance Director Buchanan Communications 020 7466 5000Tim AndersonIsabel Podda This information is provided by RNS The company news service from the London Stock Exchange