Independent Resources PLC
12 March 2007
Independent Resources plc
Strong estimate strengthens outlook for coal bed methane project
Independent Resources plc ('Independent'), the AIM-quoted natural gas storage
and exploration company, has received encouraging new resource estimates for its
Italian coal bed methane ('CBM') prospect at Fiume Bruna, north of Grosseto,
central Italy.
The results indicate the presence of a significant resource and that, under high
case assumptions, Fiume Bruna could contain up to 215 billion cubic feet ('BCF')
of in-place methane gas.
The estimates, which were produced by NorWest Questa Engineering ('NQE'), a
leading US consultancy group with specialist CBM expertise, help support
Independent's expectations that Fiume Bruna could become Italy's first
commercial coal bed methane project.
The results follow the completion late last year of a stratigraphic well that
cored approximately 7 metres of coal in one seam. Initial analyses of these coal
cores show that, in the medium case, the resource tallies closely with the
estimate provided at the time of Independent's admission to the AIM market in
2005.
The new analysis estimated the in-place CBM resource from the Fiume Bruna permit
for three cases, the sole variable between these cases being the gas content of
the coal, and how this changes over the licence area.
Case CBM resource
(BCF)
High 215
Medium 161
Low 107
Over the coming weeks additional coal analyses will be performed that should
further refine these estimates of the CBM resource.
Independent's next activities on the Fiume Bruna licence will start with
acquisition of new seismic data, followed by a pilot drilling and production
testing phase in the heart of the coal basin.
The new estimates have been produced by NQE on behalf of Independent. NQE is a
leading US-based petroleum engineering and geoscience consultancy group with a
strong specialism in CBM.
The above information has been reviewed and verified by Dr. Stephen Staley,
Managing Director of Independent, for the purposes of the Guidance Note for
Mining, Oil and Gas Companies issued by the London Stock Exchange in March 2006.
Dr Staley holds a BSc (Hons) in geophysics, a PhD in petroleum geology and an
MBA. He is a Fellow of the Geological Society and a member of the European
Association of Engineers & Geoscientists and the Petroleum Exploration Society
of Great Britain.
For further information contact:
Stephen Staley, Managing Director, Independent Resources plc: 01332 865 253
07771 838 753
Allan Piper, First City Financial Public Relations: 020 7436 7486
Background details follow:
Coal bed methane is almost pure methane produced directly from coal seams.
Whilst many conventional oil and gas fields comprise trapped hydrocarbons
generated by coal deposits, producing gas directly from 'in situ' coal is a very
different technical and economic proposition.
Independent was provisionally awarded the 'Fiume Bruna' exploration licence by
the Italian Government in June 2005. The licence covers an area of 267 km(2) and
has very light work commitments. Independent Resources holds 100% of the
licence, through its wholly-owned subsidiary Independent Energy Solutions srl.
This information is provided by RNS
The company news service from the London Stock Exchange