27 July 2010
IN-SOLVE PLC
("In-Solve" or the "Company")
Trading Update
The Directors of In-Solve Plc are pleased to announce that Wilton Petroleum
("Wilton"), in which In-Solve holds a 6.55% interest, has entered into an
agreement with Ophir Energy Plc ("Ophir") to acquire an 80% interest and
Operatorship of a Production Sharing Contract ("PSC") over an area designated
as the Marovoay Block 2102 ("Block 2102"), onshore Madagascar
Wilton has undertaken an initial prospectivity assessment of the block that has
included reprocessing of legacy seismic data, extensive field studies and
sample analysis. A revised geological model has been developed following this
work which has potentially significant implications for the prospectivity of
the basin. Ophir proposes to test these geological concepts by acquiring c
3,600km2 of high resolution gravity gradiometry and aeromagnetic data, through
a contract with UK potential field specialists ARKeX Ltd.
Under the terms of the farm in agreement, Ophir will fund 100% of the cost of
acquiring these new data and will
reimburse certain back-costs. In the event that Ophir elects to drill, Wilton
will be carried through the drilling of the first
two exploration wells subject to a financial cap on the extent of the carry.
On 28 May 2008 In-Solve Plc (formally Africa Oil Exploration Plc) announced
that Wilton commissioned ERC Energy Resources Consultants Limited ("ERC") to
review Wilton's 100% held interest in Block 2102 onshore Madagascar as at 31
March 2008.
The report prepared by ERC, using the March 2007 SPE/WPC/AAPG/SPEE Petroleum
Resources Management System as the standard for classification and reporting
and using information supplied by Wilton, contains estimates of the prospective
petroleum resources contained in the undrilled Anjohibe Lower Jurassic
prospect.
In ERC's opinion, the wide variety of structural styles, the influence of
halokinesis, the presence of organic rich shales and hydrocarbons in wells and
at outcrop together with potential reservoirs at the Permo-Triassic, Jurassic
and Cretaceous levels make Block 2102 an attractive block for exploration.
However, due to the lack of well data, the petroleum system is poorly defined
resulting in relatively high levels of risk and uncertainty.
ERC's estimates of the overall chance of success for the Anjohibe prospect are
13%, with a 50% chance of finding oil and a 50% chance of finding gas.
ERC's estimates of unrisked prospective oil in place and resources in the
prospect in the event of oil being found are as follow:
Low Best High Mean
STOIIP (MMstb) 124 460 1,667 762
Unrisked prospective oil 39 153 589 265
resources (MMstb)
Low Best High Mean
Gas initially in place (bcf) 324 1,179 4,068 1,885
Unrisked prospective gas 242 883 3,063 1,416
resources (bcf)
ERC's estimates of unrisked prospective gas in place and resources in the
prospect in the event of gas being found are as follow:
The full announcement for Ophir Energy Plc can be found at:
http://www.ophirenergy.com/UserDir/Documents/
OEplc%20-%20Marovoay%20Block%202102%202010-07-13.pdf
The Directors of the issuer accept responsibility for this announcement.
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Enquiries:
IN-SOLVE PLC TEL: 020 7467 1700
Jonathan Bradley-Hoare - Company Secretary
RIVINGTON STREET CORPORATE FINANCE TEL: 020 8099 0571
Eran Zucker
Eran@rs-cf.com
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