UMC Energy PLC UEP PNG Petroleum Project Update

  UMC Energy PLC (UEP) - PNG Petroleum Project Update

RNS Number : 4124R
UMC Energy PLC
19 November 2012
 



19 November 2012

                                UMC Energy PLC

                       ("UMC Energy" or the "Company")

                         PNG Petroleum Project Update

                                       

UMC Energy is pleased to update shareholders following a technical review of
geological data relating to the onshore Petroleum Prospecting Licences (PPL)
378 and 405, held as to 100% by Gini Energy Ltd ("Gini").  UMC Energy holds a
30% interest in Gini, with CNOOC Ltd holding a 70% interest.  While CNOOC is
the operator of the permits, UMC and its consultants provide key technical
support to the joint venture.  Under the shareholders agreement between UMC
Energy and CNOOC Ltd, CNOOC is required to fund all exploration and appraisal
expenditure up to commercial development by way of an interest free
non-recourse loan to Gini.

 

In relation to PPL 378, the Paua-1 well drilled in 1996 by BP is a declared
discovery with gas encountered in the Toro sands and oil recovered from a 33
metre gross oil column in the Iagifu sands.  Independent expert assessment of
the well logs, seismic data and geological structural modelling has provided
the following estimated Contingent Resource and Prospective Resource values,
prepared in accordance with Petroleum Resources Management System (PRMS)
sponsored by the Society of Petroleum Engineers.

 

The following table presents the recoverable Contingent Resource values for
the Paua Discovery.

 

All values              GROSS                NET ATTRIBUTABLE TO UMC     RISK
in MMbbls*                                           ENERGY             FACTOR
or BCF*
PPL 378       Low      Best                 Low      Best         
            Estimate Estimate             Estimate Estimate
Operator:                        High                          High
CNOOC          1C       2C     Estimate      1C       2C     Estimate

                                                                  
                              3C(a) 3C(b)                   3C(a) 3C(b)
Oil           0.44    11.28   67.96   6     0.13     3.38   20.4   1.8    .5
Contingent
Resource
Total for     0.44    11.28   67.96   6     0.13     3.38   20.4   1.8
Oil
Gas            20      5.6    336.8 793.6    6       1.7     101   238    .5
Contingent
Resource
Total for      20      5.6    336.8 793.6    6       1.7     101   238
Gas

*Note: MMbbls = million barrels of recoverable oil, BCF = billion standard
cubic feet of recoverable gas

 

The structural cross sections of the Paua structure for the 1C to 3C cases are
shown in Figure 1 below, where the 1C and 2C cases only consider hydrocarbon
resources in the forelimb of the structure.  It would be unusual for only the
forelimb to be charged as depicted, but the Paua-1 well only intersected this
part of the Paua structure and accordingly the estimates are based on this
actual data.  The 3C cases consider charge in the backlimb of the structure,
either gas or oil.

 

Figure 1: CONTINGENT RESOURCE CASES

 

http://www.rns-pdf.londonstockexchange.com/rns/4124R_-2012-11-19.pdf 

The Company also notes that the Wasuma-1 well drilled in 2010 by Oil Search
Ltd encountered a 4.7 metre oil column in the Iagifu B sands within the Wasuma
structure.  Independent analysis of the well log and seismic data combined
with geological modelling suggests the well may have been drilled in a poor
location and the structure has an estimated potential for a significant
recoverable oil Prospective Resource ranging from 7 MMbbls (P90) to 190 MMbbls
(P10), with 30% attributable to UMC as detailed below.  The Wasuma structure
is largely located within the PPL405 permit held by Gini.

 

All values in               GROSS             NET ATTRIBUTABLE TO UMC    RISK
MMbbls*                                                ENERGY           FACTOR
PPL 405             Low      Best     High     Low      Best     High
                  Estimate Estimate Estimate Estimate Estimate Estimate
Operator: CNOOC
                     1C       2C       3C       1C       2C       3C
Oil Prospective     7.21    37.34    193.28    2.16    11.20    57.98    .25
Resource
Total for Oil       7.21    37.34    193.28    2.16    11.20    57.98

*Note: MMbbls = million barrels of oil

 

Mr. Chris Hart, Technical Director of UMC Energy, stated the independent
confirmation of Contingent Resources in PPL378 and Prospective Resources in
PPL405 further confirms the Company's confidence in the prospectivity of its
PNG exploration assets.  UMC and CNOOC will continue to develop all leads and
prospects with geophysical studies, seismic acquisition and interpretation so
that optimal appraisal and exploration drilling can be undertaken by the joint
venture as soon as practicable.

 

Dr Jeffrey Keetley, Director and Subsurface Specialist with 3D-GEO Pty
Limited, managed a group of specialist geophysicists conducting the study to
develop the Contingent Resource and Prospective Resource values depicted in
the tables above, and has, in conjunction with Mr Hart, reviewed and approved
the technical information contained in this announcement in his capacity as a
qualified person under the AIM Rules for Companies.  Dr Keetley graduated with
a Bachelor of Sciences with Honours (Geology) from the University of La Trobe,
Australia,  in 1996 and a Doctor of Philosophy (Ph.D, Geology) from the
University of Melbourne, Australia in 2001.

 

Enquiries:

Chrisilios Kyriakou, Chairman

UMC Energy Plc

Telephone:
                                                                                                      
+44(0) 20 7290 3102

 

Angela Hallett/ James Spinney

Strand Hanson Limited

Telephone:
                                                                                                      
+44 (0) 20 7409 3494

 

Philip Haydn-Slater/Paul Dudley

HD Capital Partners LLP

Telephone:
                                                                                                      
+44(0) 20 3551 4870

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
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MSCBKCDDABDKCDD -0- Nov/19/2012 08:00 GMT