Trading Update

RNS Number : 5319G

Independent Resources PLC

23 November 2015

 

23 November, 2015

Independent Resources plc

("IRG" or the "Company")

Inaugural Quarterly Production and Operations Update

Quarterly production of 18,985 barrels in 3Q 2015

Independent Resources plc (AIM:IRG), the oil and gas exploration and production company with a focus on the Mediterranean basin, is pleased to provide  its first  operational and production update for the third quarter of 2015.

Highlights

·      Joint Venture in Egypt - East Ghazalat (Western Desert)

·      Quarterly production of 18,985 barrels of oil

·      Quarterly revenues reached US$358,457.

·      Completed a RDDH-S of the Ksar Hadada licence which revealed significant potential

Monthly Production (Net)

Egypt

Month	Total Net** Production (BOE)	Revenue (USD)
July	6,787	$144,726
August	6,292	$108,911
September	5,906	$104,820

**Revenue in Egypt is the accrued combination of cost recovery and profit oil attributed to IRG.  The average realised price for 3Q was $47.20 per barrel.

Q3 2015 Operations Update

East Ghazalat (Western Desert, Egypt)

During the quarter IRG  entered into a joint venture ("JV") agreement with Nostra Terra Oil and Gas plc, an AIM listed exploration and production company focused on the acquisition of producing assets in the US and Egypt ,which has a similar strategic intention to that of IRG to invest in producing or near-production assets with some upside potential

The initial acquisition through the JV is a 50 per cent interest in the East Ghazalat concession in Egypt for US$3.5 million, operated by North Petroleum, a wholly-owned subsidiary of China ZhenHua Oil Co, Ltd, a Chinese state-owned oil company.  The effective date of the closing was 1 July 2015, hence production and revenues are reflected this quarter.

The immediate priorities of the JV are to work with the operator, North Petroleum, to improve operating margins through cost reduction initiatives and to implement further reserve enhancement opportunities in a disciplined and rigorous manner.  IRG is discussing plans for near term well optimization and drilling opportunities in 2016.

Ksar Hadada in Tunisia

The Company completed a Remote Direct Detection of Hydrocarbon Survey (RDDH-S) of the 86.345% operated Permit in Tunisia. This revealed some significant potential.The Company continues to seek a partner to farm in to the Permit to complete the work program.

Italy

The Company awaits scheduling of the Court hearing to reinstate the Rivara gas storage permit.

Outlook

The lower oil price environment this year presents an increasing number of opportunities. IRG will continue to seek acquisitions of assets in known existing oil provinces such as Egypt and Tunisia.  We are currently evaluating further opportunities and look forward to updating shareholders at the appropriate time.

Greg Coleman, Chief Executive Officer of Independent, commented:

"We are excited to have entered into a productive joint venture and through it have completed our first acquisition of a producing asset which meets our criteria of returns and growth potential.  The collapse in crude oil prices has created a significant amount of stress on companies with high debt levels, high costs and weak and overstretched capability. I believe this is a great time to be acquiring new assets in our areas of focus." 

For more information, please visit www.ir-plc.com or contact:

Greg Coleman		Independent Resources plc	020 3367 1134
Mark Taylor		Panmure Gordon (UK) Limited	020 7886 2500
		(Nominated Adviser & Joint Broker)
Oliver Stansfield		Brandon Hill Capital	020 3463 5000
Jonathan Evans		(Joint Broker)
Simon Hudson		Tavistock Communications	020 7920 3150

 

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