Last checked at 24 Nov 2008 16:02
TomCo Energy plc
("TomCo" or the "Company")
Results of the Independent Reserves and Resource Evaluation and Audit Undertaken by TRACS International Limited
TomCo Energy plc (AIM: TOM), an AIM listed company which has investments in conventional oil production in the United States and Israel, is pleased to announce the outcome of an independent Reserves and Resource evaluation and audit of the Heletz Field, Israel, in which the Company has a substantial interest1.
As announced on the 3 July 2008, the study was undertaken by TRACS International Ltd ("TRACS") on behalf of the Company and its partner and field operator, Avenue Energy Israel Ltd ("Avenue Energy").
Based on a comprehensive re-evaluation of the data collated from the field, including over 90 wells drilled since the field was discovered in 1955, TRACS estimate a mid-case (P50) original oil-in-place for the field of 94.4 MM bbl, with a range from 52.7 MM bbl (P90) to 164.4 MM bbl (P10). This estimate represents a significant increase over the previously quoted figure of 50 MM bbl, and reflects the recognition of substantial additional volumes of oil in lower quality carbonate reservoirs (e.g. the 'Kokhav Dolomite') within the main Cretaceous reservoir section. TomCo and Avenue Energy believe that a significant portion of this additional oil will be recoverable through the application of modern drilling, completion and reservoir management techniques, and, as noted by TRACS, "that there is considerable remaining potential in the Heletz field"
Around 17 MM bbl have been produced from the field to date, mainly from the better quality sandstone reservoirs in the middle of the Cretaceous reservoir section. TRACS have calculated the currently established gross field Remaining Reserves2, on a 2P (Proved plus Probable) basis to be 974,000 bbl, of which 720,000 bbl are Undeveloped Reserves to be targeted by the planned 2009 workover and infill drilling campaign. The 3P (Proved plus Probable plus Possible) upside reserves are 1.87 MM bbl. The Company's net interest in these reserves is around 35%.
| Reserves, MM bbl | 1P | 2P | 3P |
| Gross Field | 0.462 | 0.974 | 1.870 |
| Net to TomCo | 0.163 | 0.336 | 0.630 |
| Contingent Resources, MM bbl | 1C | 2C | 3C |
| Gross Field | 1.003 | 3.520 | 8.568 |
| Net to TomCo | 0.335 | 1.230 | 3.022 |
In addition, TRACS have identified 3.5 MM bbl of gross field '2C' Contingent Resources with up to 8.5 MM bbl in the upside, '3C' case. The majority of these Contingent Resources (ca 63%) are in the Kokhav Dolomite, but there are also significant resources identified through a partial waterflood of the field, and through further infill drilling. Again, the Company holds an average net interest of 35% in these resources. As the field is re-developed over the coming months, we expect a substantial portion of these Resources to be upgraded to Reserves status.
The Company continues to recognise a large exploration potential in deeper Jurassic limestones below the Cretaceous reservoirs, but these targets were not included in the TRACS evaluation.
Howard Crosby, the Company's CEO, comments: "We are very pleased with the TRACS Report with original Oil-in-Place (P50) estimates almost double the figure previously released. It is also our belief that the planned work program for 2009 can significantly increase the proven and probable reserves and the Report also confirms the huge up-side potential that further exploitation can unlock at the Heletz Field."
The technical information contained within this announcement has been reviewed and approved by Nicholas J. R. Wright, who is a professional geologist and a Qualified Person under AIM rules. Mr Wright has over 25 years experience as a petroleum geologist in the international Oil & Gas industry.
Enquiries:
| TomCo Energy plc Howard Crosby | +44 (0)20 7766 0078 |
| Strand Partners Limited Simon Raggett Stuart Faulkner David Altberg | +44 (0)20 7409 3494 |
Glossary of terms:
Reserves - are those quantities of petroleum anticipated to be recoverable by application of development projects to known accumulations from a given date forward under defined conditions. For a full definition of Proved, Probable, Possible, 1P, 2P, 3P Reserves etc the reader is referred to the SPE-WPC-AAPG-SPEE 'Petroleum Resource Management System (2007)'
Contingent Resources - are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies. For a full definition of 1C, 2C, 3C resources etc the reader is referred to the SPE-WPC-AAPG-SPEE 'Petroleum Resource Management System (2007)'
bbl - barrels of crude oil
MM bbl - millions of barrels of crude oil
1 The Company has interests in two licenses covering the Heletz Field - a 25% working interest in the 'Iris License' in the central part of the field, and a 50% working interest in the larger 'Heletz License'.
2 The Reserves and Resources reporting standard adopted by TRACS is the SPE-WPC-AAPG-SPEE 'Petroleum Resource Management System (2007)'.