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 END MSCBKCDDABDKCDD -0- Nov/19/2012 08:00 GMT
UMC Energy PLC UEP PNG Petroleum Project Update
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