Resource Update

RNS Number : 3011X

Indus Gas Limited

03 December 2010

 



For Immediate Release                                                                                     3^rd December 2010

Indus Gas Limited

("Indus" or "the Company")

Resource Update

Indus Gas Limited (AIM:INDI.L), an oil & gas exploration and development company with assets in India, is pleased to announce a dramatic increase in its reserves and resources following an updated Competent Persons Report (CPR). The CPR was provided by Senergy Oil & Gas. This report has been completed in accordance with the 2007 Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE). Details of the 2007 Petroleum Resources Management System together with definitions and glossary can be found at:

 http://www.spe.org/industry/reserves/docs/Petroleum_Resources_Management_System_2007.pdf.

CPR Highlights:

·      Gross 'Proven plus Probable' reserves increase to 307 Bcf

o  91% increase from that attributed in previous CPR by TRACS in 2008

o  24% increase on management committee upgrade to 2P reserves

o  New 2P reserves of 61 Bcf attributed to the recent Eastern Promise well

·      Significant growth in 2C gross contingent resources - increase 490% from 369 Bcf to 1,808 Bcf

·      Gross prospective resources (Best Estimate) increased 340% from 634 Bcf to 2,158 Bcf

·      Significant contingent and prospective resource increase resulting from new wells drilling and additional seismic acquisition since IPO.

·      Reported volumes exclude potential from hydro-fracturing campaign planned to be undertaken by the Company in 2011.

Summary table:

Thetable below provides a summary of the changes in reserves and resources from the report provided by TRACS in 2008 to the current updated report by Senergy Oil & Gas.

	Senergy 2010		TRACS 2008
Category	Gross (Bcf)	Net to Indus (Bcf)	Gross (Bcf)	Net to Indus (Bcf)
2P Reserves	307	210	160	86
2C Contingent Resources	1,808	1,545	369	257
Best Estimates Prospective Resource	2,158	1,755	634	387

Contingent Resources are based on the following previously reported wells and seismic re-interpretation much of which has been conducted since IPO: SSG-1, SSF-2, SPF-1 (sometimes known as SFT-1/P), SSM, Saatchi and Indian Shingli.

Prospective Resources are based on the following previously reported wells, seismic re-interpretation and prospect evaluation much of which has been conducted since IPO: SFT-2/P, SFT-3/P, SFT-4/P, Indian Shingli, Tirath, Sandwich, Conwy (Prospect previously listed as Saatchi South) and SSG-1.

Commenting, Marc Holtzman, Chairman of Indus, said:

"This updated independent resource report reaffirms the considerable commercial potential of the Company's block and is a dramatic increase in the overall volumes over past resource report. It attributes reserves to the Eastern Promise well, reaffirms the upgrade in reserves attributed to the SGL field by the management committee and the resources attributed to a number of prospects identified in the previous CPR, as well as attributes significant contingent and prospective resources to the additional wells drilled since IPO."

The full form of the CPR is available from the Company's NOMAD, Arden Partners plc, telephone number: [phone] or at their offices at 125 Old Broad Street, London. EC2N 1AR.

In accordance with AIM rules, Paul Fink, Technical Consultant, a Geophysicist who holds and engineering degree from the Mining University of Leoben, Austria and has 20 years of industry experience is the qualified person that has reviewed the technical information contained in this release.

The Company shall be announcing its interim results for the six months ended 30 September 2010 and an operational update in couple of weeks time.

-ENDS-

For further information please contact:

 

Indus Gas Limited
John Scott	CFO	[phone]
Arden Partners plc
Richard Day		[phone]
Adrian Trimmings
Pelham Bell Pottinger
Philip Dennis		[phone]
Elena Dobson		[phone]

 

 

 

 

END

 

 

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