20th Mar 2007 10:26
Rift Oil PLC20 March 2007 For immediate release 20 March 2007 Rift Oil Plc ("Rift") Memorandum of Understanding ("MOU") Rift Oil PLC (LSE: RIFT), is pleased to announce that a non binding MOU withAlcan South Pacific has been concluded with its wholly owned subsidiary ForelandOil Ltd. The MOU sets out the activity to further investigate the supply ofapproximately 40 BCF of natural gas per annum over 20 years to the Gove Refineryin the Northern Territory of Australia. This work programme is expected to becompleted by mid 2008 and aims to provide sufficient information for the partiesto proceed to a binding agreement to supply natural gas to Gove. About Rift Rift, an AIM listed company, has over 7,000 sq km of exploration acreage in thewestern province of Papua New Guinea ("PNG"). Rift is the operator of PPL 235 and PPL 261 through its wholly owned subsidiary,Foreland Oil Ltd. PPL 235 has two wells: Douglas-1 and Langia-1 which are bothgas discoveries with potential condensate. In Langia-1, the discovery consistsof a net 7m of gas pay in a high quality reservoir. Douglas 1 consists of a net25m pay in two sections with an estimated flow potential of up to 30 millioncubic feet per day. Rift owns 65% of PPL 235 and 50% of PPL 261. PPL 261 is contiguous to PPL 235 and within approximately 100km of major oil andgas fields such as Juha, Hides. Moran, Mananda and Kutubu which are to the northwest. The PPL 235 joint venture also owns the Coral Sea 1 drilling rig, which has beenmaintained on site in anticipation of further drilling to build the companiesoil/gas reserves. Ian Gowrie-Smith, Non-Executive Chairman of Rift, said: "Rift Oil is delighted that its enthusiasm for our licenses in Papua New Guineahas been vindicated by a range of potential commercial opportunities. "We now look forward to accelerating our drilling programme with the immediatetasks of flow testing Douglas-1 and drilling appraisal wells on the Douglas gasfield and drilling our nearby Puk Puk structure. The success of Douglassubstantially de-risks drilling at Puk Puk and Rift remains hopeful that it mayfind oil or gas there. It is anticipated that the proposed drilling programmeshould be completed by mid 2008." Peter Mikkelsen FGS, AAPG, as the qualified non-executive Director has reviewedthis statement and authorised its release. For further information please contact: Rift Oil PLC 020 73409970David Lees, Finance Director Buchanan Communications 020 7466 5000Tim Anderson Isabel Podda Glossary: "BCF" means billion cubic feet of gas "Net Pay" means total thickness of productive sand in the reservoir "Flow Potential" means the rate at which the well is considered to be capableof flowing This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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