Rift Helium Regulatory News (RIFT)

1 Jun 2006 07:01

Rift Oil PLC01 June 2006 For immediate release 1 June 2006 RIFT OIL PLC ANNOUNCES GAS DISCOVERY AT DOUGLAS-1 WELL Rift Oil PLC (LSE : RIFT), is pleased to announce a gas discovery on the wildcatexploration well Douglas-1, located in the area PPL 235 of Papua New Guinea("PNG"). Rift has a 65% interest and its joint venture partner, Austral PacificEnergy Ltd. a 35% interest in Douglas-1. The discovery has been deemed by theoperator Austral Pacific Ltd. to warrant casing and production testing. The well reached a total depth of 1,978 metres on Friday 26th May. Wireline logsrun over the weekend indicate that the well has intersected two gas bearingcolumns, the first in the Alene sand from 1,785 metres to 1,789 metres (4 metresgross; 4 metres net) and the second in the Toro sand from 1,838 metres to 1,855metres (17 metres gross; 12 metres net). Formation pressure measurements werealso recorded, which suggested very good quality reservoir. Commenting on the discovery Rift Oil PLC's Chief Executive Jenni Lean said: "Weare very encouraged by the results we have seen so far in Douglas-1 although werecognise that the prospects for successfully commercialising the resource willrequire a lot of further evaluation. The results validate the anticipatedhydrocarbon potential for the licence. The Douglas-1 well is located downdipfrom one of three structural highs that comprise the Douglas prospect. Inaddition there are a number of other prospects within the permit which takentogether constitute significant follow-up potential." The drilling rig is currently conditioning the well prior to running productioncasing. The operator's decision on when production testing could commence willbe taken once the availability of production testing equipment has beenascertained and a testing programme and budget have been agreed. Jenni Lean added :"PPL235 covers 2,910 sq.km. Seismic mapping of the Douglasstructure had indicated a large closure, measuring some 50 sq.km. Taken withseveral other structures in PPL 235, we could potentially have a significant newgas province. Advanced plans to pipe gas to Australia from Papua New Guineademonstrate that potential markets do exist for gas discovered in PNG. PPL 235is closer to the proposed pipeline than current potential suppliers. It ishowever, very early days." Peter Mikkelsen FGS, AAPG, as the qualified non-executive Director has reviewedthis statement and authorised its release. Ends Contacts: Rift Oil plc 020 7499 1400 Ian Gowrie-Smith, Chairman Buchanan Communications 020 7466 5000 Tim Anderson Ben Willey This information is provided by RNS The company news service from the London Stock Exchange