10th Nov 2006 07:00
Cambrian Oil & Gas PLC10 November 2006 10th November 2006 AIM: COIL Cambrian Oil & Gas Plc ("COIL" or "the Company") Update re Methanol Australia Limited Cambrian Oil and Gas Plc (AIM : COIL) wishes to inform shareholders of thefollowing highlights extracted from recent announcements made by MethanolAustralia Limited ("MEO") on the ASX, of which COIL owns approximately 25% ofthe issued capital. MEO's key objective is to become a leading producer of liquefied natural gas(LNG) and methanol from its proposed gas-to-liquid projects on the Tassie Shoal,located in Australian waters some 275km north west of Darwin. • Acquisition of 3D seismic data over Epenarra structure within MEOwholly owned Exploration Permit NT/P68 in the Timor Sea to determine optimumlocation for appraisal well • 74% of 2D seismic data acquired over the Blackwood structure withinExploration Permit NT/P68 to assist in confirming location of Blackwood-1exploration well • MEO intends to drill up to three wells in 2007 with newly acquiredjack-up rig MEO announced on 31 October 2006 the successful completion of the acquisition ofnew 3D seismic data over Epenarra, located in MEO's 100% owned ExplorationPermit NT/P68 in the Timor Sea. The Epenarra structure is a broad, low reliefanticline at the Darwin formation level with mapped closure of approximately1,200 square kilometers, located entirely within Australian waters. The 3Dseismic data has been acquired to confirm distribution and orientation of faultsand fracturing within the 50m gas bearing fractured carbonate zone of theEpenarra structure intersected by the Heron-1 well, drilled by ARO in 1972. Thisdata will be used to determine the optimum location for the Heron-2 appraisalwell. MEO recently announced that approximately 74% of the data for the 600 line km 2Dseismic survey over the Blackwood structure in Exploration Permit NT/P68, hadbeen acquired and remained on schedule. The new 2D infill data will be combinedwith the extensive 1996 and 1997 2D grid already over the permit and willimprove the structural mapping of Blackwood. MEO expects the new data to confirmthe final location of the Blackwood-1 exploration well. MEO intends drilling up to three wells (Heron-2, Blackwood-1 and potentiallyHeron-3) in the Permit area next year and has secured a new jack-up rig toundertake the drilling. The rig is expected to arrive on location in August2007. Chris Hart, the Managing Director of MEO, stated that a just released study onthe Epenarra prospect revealed a strong possibility of high levels of associatedgas liquids (LPG and condensate) within the gas bearing structure. This meanspotential for significant commercial quantities of liquids. For full details of the announcements of MEO, please see the Australian StockExchange website: www.asx.com.au (ASX: MEO) or MEO's website:www.methanol.com.au For further information, please contact: Neale Taylor Victoria ThomasCambrian Oil & Gas plc Parkgreen CommunicationsTel: +44 (0)20 7409 0890 Tel: +44 (0)20 7493 3713 Peter Jackson/ Paul DudleyW.H. Ireland LimitedTel: +44 (0) 20 7220 1666 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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