25th Jul 2006 07:01
Rift Oil PLC25 July 2006 For immediate release 25 July 2006 RIFT OIL PLC ("Rift" or the "Company") Douglas Drilling Programme and Strategy Update Rift Oil PLC (LSE : RIFT), is pleased to provide a further update on its DouglasDrilling Programme. On 26th May 2006 we drilled to the target depth of 1978metres and have now had the opportunity to analyse the drilling results. Ourconclusion is that we have a very exciting gas discovery. During the interveningperiod we have agreed the best way to attempt to advance the concession tocommercialisation. The Douglas-1 discovery has found potentially significant reserves of gas in alarge structure with a maximum area of over 40 square km. It has also de-riskedother similar looking prospects and leads on the licence (PPL235). It is ourintention to proceed with a detailed feasibility study to determine acommercialisation strategy for this resource. We initially considered conducting further tests on the drilled well, howeverthe excellent MFT (Multi-Formation Tester) results indicate that there are tworeservoirs (Alene and Toro) of sweet gas with good deliverability and likelymoderate condensate content. Further testing would not reveal other significantfactors and was therefore not felt to be appropriate. In order to identify the extent of the reserves we need to improve our knowledgeof the remaining large structures on the licence. We have to pinpoint the bestplace to drill the next well to maximise the return on our investment. This willbe best achieved by fulfilling our existing commitment to undertake 50kms ofnew 2D seismic acquisition before August 07 as stated under the terms of thelicence. Logistically, this is best carried out between September and November2006. The drilling rig that the Joint Venture acquired earlier this year has served usextremely well but is now not required by us until after the seismic study hasbeen completed and analysed. We are therefore actively reviewing third partyproposals to utilise the rig during this intervening period to generate revenuefor Rift. The audited results for the year ended 31st March 2006 will be announced in lateAugust, 2006. Ends Contacts: Rift Oil plc 020 7340 9970David Lees, Finance Director Buchanan Communications 020 7466 5000Tim Anderson This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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