REG - Indus Gas Limited - Resource Update <Origin Href="QuoteRef">INDII.L</Origin>

Indus GasAnnouncement

08/12/2014 07:11

RNS Number : 0482Z
Indus Gas Limited
08 December 2014
08 December 2014
For Immediate Release 
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 significant increase in its reserves and resources following an updated Competent Persons Report (CPR). The CPR was provided by Senergy Oil & Gas.
CPR Highlights:
 Gross 'Proven plus Probable' remaining reserves increased to 872 Bcf (Net of 18 bcf already produced as of 30 September 2014)
o 52% increase from 573 bcf assigned in previous CPR by Senergy in 2012 
o Proven reserves increased to 423 Bcf as against 118 bcf assigned in previous CPR by Senergy in 2012
o New reserves largely attributed to new sands (lower P10) within SGL field and SSM fields
o Discounted cash flows at 10% IRR (NPV10)in respect of"Proven plus Probable" reserves of 872 Bcf estimated to be US$ 2,309mn (before capital expenses) and US$ 1,785mn (Net of capital expenses). 
 2C gross contingent resources increased 19% from 2,699 Bcf to 3,219 Bcf - Current CPR utilizes only some of the recent data used in the approval of the Declaration of Commerciality in respect of contingent resources.
 Best estimate prospective resources of over 2 TCF attributable to the wells outside the SGL development area
 Pipeline connection to existing cross country pipeline and western gas grids emerging as a viable option for long term gas monetization.
Summary table:
The table below provides a summary of the changes in reserves and resources from the report provided by Senergy in 2012 to the current updated report by Senergy:
Senergy 20141
Senergy 2012
Category
Gross (Bcf)
Net to Indus (Bcf)
Gross (Bcf)
Net to Indus (Bcf)
2P Reserves
872
672
573
449
2C Contingent Resources
3,219
2,897
2,699
2,429
Best Estimates Prospective Resource 
2,004
1,804
2,182
1,964
Note 1: Senergy current reported numbers are net of 18 Bcf of gas already produced as of 30 September 2014
The table below provides a summary of current updated report by Senergy broken into different classifications for Gross Volumes:
Total Gas Volumes as per Senergy Report 2014 (Bcf)
Classification
1P
2P
3P
Reserves*
423
872
1,643
Classification
1C
2C
3C
Contingent Resources
991
3,219
6,698
Classification
Low Estimates
Best Estimates
High Estimates
Prospective Resource (Unrisked)
542
2,004
4,562
Note 1: Senergy current reported numbers are net of 18 Bcf of gas already produced as of 30 September 2014
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/docs/Petroleum_Resources_Management_System_2007.pdf
Commenting, Peter Cockburn, Chairman of Indus, said:
"The significant uplift in Company's reserves and growth in Contingent Resources reflects the major operational progress made on Block RJ-ON/6 since the last CPR was conducted in 2012. We are pleased that we have migrated both assets from Contingent Resources to Reserves and from Prospective Resources to Contingent Resources. This represents an ongoing process which we shall continue in our next CPR. the recent approval of Declaration of Commerciality will help further expedite this process." 
The full form of the CPR is available from the Company's NOMAD, Arden Partners plc, telephone number: +44(0) 207 614 5917 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 an 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
Indus Gas Limited
Peter Cockburn
John Scott
+44(0)20 7877 0022
Arden Partners
Steve Douglas
+44(0)20 7614 5900
Bell Pottinger PR
Philip Dennis
+44(0)20 3772 2557

This information is provided by RNS
The company news service from the London Stock Exchange
  END
MSCQKPDPOBDDQBK