Statement re Ksar Hadada
Independent Resources PLC
21 September 2006
Additional data leads to re-appraisal of planned Tunisian drilling strategy
AIM-quoted Independent Resources plc ('IRG' or 'the Company') is pleased to
announce it has acquired additional seismic and geological data from its
promising Ksar Hadada oil and gas licence in Tunisia.
As a result, it has decided to delay the start of drilling which - as announced
in its interim results for the period ended 31 March 2006 - was originally
scheduled for the current quarter, pending a reappraisal of the most appropriate
drilling strategy.
The new data has been supplied by Tunisia's state oil company Entreprise
Tunisienne d'Activites Petrolieres (ETAP). IRG holds a 40% stake in the
exploration permit.
IRG Chairman Grayson Nash said: 'While it is disappointing that we cannot start
as early as we would like with our planned well, we are delighted to have
received new information that is providing a clearer picture of existing and
possible new prospects at Ksar Hadada. We are looking forward to re-appraising
the best way forward, and hope to agree a new timetable without too much delay.
We believe we have a highly prospective licence area and we are especially keen,
in the current global environment of high drilling costs, to optimise any
drilling campaign.'
For further information contact:
Stephen Staley, Managing Director, Independent Resources plc: 01332 865 253
07771 838 753
Allan Piper, First City Financial Public Relations: 020 7436 7486
Background details follow:
The Ksar Hadada block covers an area of around 7,000 km(2), and contains a
geological target that has proved very prospective in neighbouring Libya and
Algeria where several large oil & gas discoveries have been made (e.g. Hassi
Messaoud, Amal, Elephant, and Rhourd El Baguel.) The main prospect of interest
remains the Sidi Toui structure.
The production sharing contract (PSC) has a four-year exploration period from
April 2004 and two possible extensions of three years each. The licensees are
responsible for 100% of costs during the exploration phase. All work commitments
for the first four years have already been met.
The acreage was first explored in the 1950s, using the poor technology available
at that time. The Sidi Toui-1 well discovered oil and some oil stained cores
were recovered. A limited test programme was conducted on the oil leg. The Sidi
Toui-2 appraisal well was dry. Subsequent seismic data showed both wells were
poorly located, having been sited using surface mapping and gravity data as was
prevalent in the 1950s.
Recognising that this major structure had not been properly explored was the
basis for applying for the permit. In 2004 Petroceltic and its carried partners
drilled the Sidi Toui-3 appraisal well but the Chinese rig was subject to
scheduling problems and was available for a much shorter time than was planned.
The well contacted few fractures and was only tested for a very short period
without the benefit of nitrogen lifting equipment to help stimulate the well.
The well was suspended after a tiny amount of fluids had been produced during
the very brief test.
Before acquiring this additional data from ETAP, IRG had undertaken an intensive
post mortem with Blackwatch Petroleum Services and concluded that Sidi Toui- 3
appraisal well was worth re-entering and re-testing.
This information is provided by RNS
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