Update on Fiume Bruna project
Independent Resources PLC
23 July 2007
Independent Resources plc
('Independent Resources' or 'the Company')
Fiume Bruna results indicate 92 billion cubic feet of recoverable CBM resource
Independent Resources plc, the AIM-quoted natural gas and exploration company,
is pleased to announce its Fiume Bruna coalbed methane ('CBM') property in
northern Italy contains an estimated recoverable CBM resource of around 92
billion cubic feet ('BCF').
The assessment follows independent analysis of coal samples recovered from a
stratigraphic well drilled in the licence area late last year.
The new assessment, completed by Norwest Questa Engineering ('NQE'), found that
the stratigraphic well penetrated coals which are gas saturated and contain a
well-developed cleat system in the bright bands. Gas saturation and cleating
are conducive to CBM production.
NQE is a leading US consultancy group with specialist CBM expertise.
Based on the data assessed, NQE estimates the in-place CBM resource to be about
170 BCF and the recoverable resource to be about 92 BCF. These estimates compare
favourably with those made in March of this year which quoted in-place resources
of 107 BCF (low case), 161 BCF (medium case) and 215 BCF (high case).
Independent Resources continues to plan for the acquisition of new seismic data
and drilling of the next well on the licence. It is intended that this well will
be put on long-term test to assess the production profile of the coals.
Before either the seismic survey or the well can be carried out Independent
Resources must gain the necessary environmental approvals. Because of the high
quality of technical work undertaken by the Company, and its desire to involve a
wider range of interested parties, it has adopted the advice of the regional
authorities to convert its already-submitted environmental application
(an 'RIA') to a fuller 'VIA' application. Although this will inevitably be time
consuming the Company believes it to be best approach in the long run.
As before, the Company continues to engage with potential farm-in partners to
the Fiume Bruna project.
The above information has been reviewed and verified by Dr Stephen Staley,
Managing Director of Independent Resources, for the purposes of the Guidance
Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in
March 2006. Dr Staley holds a BSc (Hons) in geophysics, a PhD in petroleum
geology and an MBA. He is a Fellow of the Geological Society and a member of the
European Association of Engineers & Geoscientists and the Petroleum Exploration
Society of Great Britain.
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 7242 2666
David Smith, Deloitte Corporate Finance (Nomad) 020 7007 8177
Background details follow:
Coal bed methane is almost pure methane produced directly from coal seams.
Whilst many conventional oil and gas fields comprise trapped hydrocarbons
generated by coal deposits, producing gas directly from 'in situ' coal is a very
different technical and economic proposition.
Independent Resources was provisionally awarded the 'Fiume Bruna' exploration
licence by the Italian Government in June 2005. The licence covers an area of
267 km(2) and has very light work commitments. Independent Resources holds 100%
of the licence, through its wholly-owned subsidiary Independent Energy Solutions
srl.
This information is provided by RNS
The company news service from the London Stock Exchange
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