Business
Acquisition
Acquisition.
About this update from Iofina Plc
[{"type":"text","content":"\n RNS Number : 1973B Iofina PLC 13 August 2008 \n \n\nIofina plc\n13th August 2008\n('Iofina' or 'the Company')\nAcquisition of New Natural Gas and Iodine Prospect\nThe directors of Iofina, the natural gas and iodine exploration and production company, are pleased to announce the acquisition of 30,000 acres within an area in south eastern Montana, USA, which the Company has named the Triton Prospect, which the Company's geologists have identified as an area with potentially large new gas and iodine reserves. The Company and its subsidiaries ('the Group') hold a 100 per cent interest.\n\nIofina's proprietary Wellhead Extraction Technology® method is well suited to achieving commercial production on the Triton Prospect. As a result of co-produced brine water, the Triton Prospect is commercially unviable using traditional technology, and was therefore acquired by the Group on favourable commercial terms. \n\nTriton Prospect Highlights:\n\n\n\nThe Triton Prospect has gas and iodine potential throughout the Cretaceous sediment package including the Judith River, Eagle, Mowry and Muddy formations. The Group currently holds 30,000 net acres. \n\n\nMultiple well control data in the area indicates large amounts of gas cut brine while well water samples from the region show the presence of iodine. The gas is believed to be trapped in a similar manner to the gas in the Group's Atlantis Prospect and is therefore well suited for extraction using Iofina's Wellhead Extraction Technology® method.\n\n\nThe Group will undertake further analysis after a pilot program to firm up resource estimates and will commission an independent reservoir appraisal firm to produce an independent valuation of the Triton Prospect.\n\n\nExisting pipeline infrastructure from the Atlantis Prospect is within 20 miles of the Triton Prospect, along with vast and deep disposal zones for the spent brine.\n\n\nThe Company may seek to lower the ongoing cost and risk profile if the Triton Prospect proves commercially attractive through establishing joint ventures with industry partners.\n\n\nThe Group, having been awarded the project, is awaitin...