10th Aug 2005 07:00
Cambrian Oil & Gas PLC10 August 2005 Cambrian Oil & Gas Plc ("COIL" or the "Company") 10 August 2005 Geochemistry Confirms Presence of Hydrocarbons Cambrian Oil & Gas Plc (AIM : COIL), the oil and gas exploration, developmentand production company with assets in the Kyrgyz Republic announces thecompletion of a wide ranging geochemistry survey in the South Karagundai andShink Sai prospects in its Tash Kumyr licence. Key Points • Cambrian Oil & Gas Plc's subsidiary, JSC KNG Hydrocarbons, has now completed a wide ranging geochemistry survey over the South Karagundai and Shink Sai prospects in the Tash Kumyr exploration licence. • W.L. Gore & Associates has reported on the results of the survey, which used the company's GORE(TM) Survey for Exploration, an advanced geochemistry technology. • Over 300 modules were deployed in a grid over the two prospect areas, which had shown clear hydrocarbon indications from an earlier screening study. • The GORE(TM) Survey suggests that several geochemical features conform to major aspects of previous structural interpretations at the primary Palaeogene target depths. • A number of additional positive geochemical anomalies have been identified outside of previously identified structural features. • The results also indicate there may be additional hydrocarbons in deeper horizons as occur in adjoining areas. • An extensive seismic survey is about to commence with the aim of defining drillable targets. Confirmation of the presence of Hydrocarbons within the licence area andadditional positive geochemical anomalies being discovered will assist theCompany in identifying further drill targets later in 2005. Neale Taylor, CEO of Cambrian Oil & Gas said that "The results are encouragingand have been used to modify the layout of the Company's imminent seismicsurvey. The results of both surveys would then be combined to gain a fullerunderstanding of the geological system in the survey area. With a combinedinterpretation in hand later in the year, the Company expects to identifyseveral drilling locations." Gore's report states: "The results of the GORE(TM) Survey over JSC KNGHydrocarbon's licence area in the Fergana Basin in Kyrgyzstan are positive andrepeatable. Based on geochemical modelling results, the survey area shows greatpromise for the presence of hydrocarbon reservoirs of both oil and natural gas.These oil and gas accumulations are likely similar to the hydrocarbons found inproducing wells Mailisu #411 (oil) and Izbashkent #123 (gas), respectively,which were used for comparison purposes. Statistical modelling was extremely stable and consistent. This result may bedue to the combination of above-average mass values collected on the modules andthe unique chemical fingerprint of the subsurface hydrocarbons. Several geochemical features conform to the Palaeogene structuralinterpretations offered during the course of interpretation. The Gore surveyresults suggest that the structural surface may be a hybrid of the twostructural interpretations provided by the client. Alternatively, the resultsmay suggest that there are hydrocarbons associated with horizons other than thePalaeogene mapped horizons considered in this report. These possibilities couldaccount for differences between the geochemical interpretation and thestructural interpretations provided." Ends For further information please contact: Neale Taylor, CEO, Cambrian Oil & Gas Plc +44 (0)20 7493 7671Paul Mc Groary, Director, Cambrian Oil & Gas Plc +44 (0)79 3056 8160Victoria Thomas, Parkgreen Communications +44 (0)20 7493 3713 Notes to Editors: About Cambrian Oil & Gas: Cambrian Oil & Gas (AIM : COIL), previously Silvermines Media Plc (AIM : SLV) acompany first admitted to trading on AIM on 15 July 2004, was readmitted to AIMon 1 March 2005 following an acquisition of the entire issued share capital ofZhibek Resources Plc. Zhibek was formed in February 2004 for the purpose ofconducting oil exploration, development and production activities in CentralAsia and FSU. COIL currently has three operational projects in the Kyrgyz Republic; theBeshkent-Togap water injection project; the Tash Kumyr exploration project, anexploration licence area with 5 prospects and a recently acquired intermountainbasin exploration licence area, which adjoins Lake Toktogul. GORE(TM) Survey Applications The GORE(TM) Survey method is a surface geochemical sampling system employing theGORE-SORBER(R) module (patented passive soil vapor sampling device),state-of-the-art chemical analysis and sophisticated statistical geochemicalpattern recognition. This surface geochemical sampling technique has evolvedfrom over fifteen years of experience in soil gas geochemical exploration andanalytical chemistry, and is capable of differentiating reservoir hydrocarbonsfrom "background" hydrocarbons (emanating from vegetation, shallow pollution,source rock, etc.). Typical applications of this technique include: 1) Frontier- to determine hydrocarbon potential over large previously unexplored areas; 2)Exploration - focus geophysical efforts, prioritize leads or investigatestratigraphic traps; 3) Development - define the areal extent of producingfields and locate potential areas for secondary recovery. Prudent use andintegration of the geochemical results can have significant benefits to thesuccess of an exploration program, resulting in fewer dry holes. (TM) - a trademark of W.L. Gore & Associates, Inc. USA This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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