Resource Update

RNS Number : 8597S

Indus Gas Limited

06 December 2012

 



For Immediate Release                                                                                        6 December 2012

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.

Indus is issuing a separate announcement covering the Interim Results to 30 September 2012 today.

CPR Highlights:

·      Gross 'Proven plus Probable' reserves increase to 573 Bcf

o  87% increase from that attributed in previous CPR by Senergy in 2010 and a 258% increase from the IPO CPR by Tracs

o  New 2P reserves of 266 Bcf attributed to the recent SSF Field

·      Meaningful growth in 2C gross contingent resources - increase 49% from 1,808 Bcf to 2,699 Bcf

·      Over 1TCF of gross prospective resources attributable to the wells outside the SGL development area

·      Majority of wells drilled outside the SGL area in 2012 excluded from this CPR due to CPR process timetable

Summary table:

The table below provides a summary of the changes in reserves and resources from the report provided by Senergy in 2010 to the current updated report by Senergy.

	Senergy 2012		Senergy 2010
Category	Gross (Bcf)	Net to Indus (Bcf)	Gross (Bcf)	Net to Indus (Bcf)
2P Reserves	573	449	307	210
2C Contingent Resources	2,699	2,429	1,808	1,545
Best Estimates Prospective Resource	2,182	1,964	2,158	1,755

Contingent Resources are based on the following previously reported wells and seismic re-interpretation: SSG-1, SX, Southern Comfort, and Sandwich.

Prospective Resources are based on previously reported wells, seismic re-interpretation and prospect evaluation much of which has been conducted since 2010: and new contributions from SX B&B Sands and SSM B&B Sands.

Commenting, Marc Holtzman, Chairman of Indus, said:

"The significant uplift in 2P Reserves and growth in 2C Contingent Resources reflects further work done on the Block since 2010. We are pleased that we have migrated assets from Contingent Resources to Reserves and from Prospective Resources to Contingent Resources. This is part of an ongoing process which we shall continue in our next CPR. On the basis of this report we are moving ahead with additional gas sales and as in the past, we expect to fund the development spending associated with these sales from debt financing."

The full form of the CPR is available form 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 23 years of industry experience is the qualified person that has reviewed the technical information contained in this release.

-ENDS-

For further information please contact:

Indus Gas Limited
John Scott	CFO	[phone]
Arden Partners plc
Richard Day		[phone]
Adrian Trimmings
Pelham PR
Philip Dennis		[phone]

Elena Dobson                                                                              [phone]

 

END

 

 

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