28th Jul 2005 06:02
28 July 2005 NELSON RESOURCES LIMITED ANNOUNCES 15% INCREASE IN RESERVES AND APPOINTMENT OF DIRECTOR Nelson Resources Limited (TSX / AIM: NLG), a leading independent explorationand production company operating in Kazakhstan, today announces an increase of15% in proved and probable (2P) oil reserves net to Nelson's equity interest inits fields, according to a mid-year update of the December 31, 2004 reservesfigures carried out by independent reserves evaluators McDaniel & AssociatesConsultants Ltd., Calgary ("McDaniel").The increase to 270 million barrels (MMbbls) of 2P reserves net to Nelson, from235 MMbbls as of the previous review, is mostly attributable to a re-evaluationof the Kozhasai field in north-western Kazakhstan, following the completion ofa test well carried out as part of the field's pilot production programme. Thereserves review was limited to the field's West Block where the test well islocated. As a result, the field's total 2P reserves at December 31, 2004 havebeen re-evaluated at 75 MMbbls (38 MMbbls net to Nelson's 50% interest), aseven-fold increase over the previous evaluation of 11 MMbbls.McDaniel has also conducted an initial review of the Arman field, the matureproducing field in western Kazakhstan in which Nelson acquired a 50% stake inFebruary 2005. This is based on decline rate analysis of existing producingwells, and has attributed 4.7 MMbbls of remaining recoverable proved producingreserves to the field at December 31, 2004 (2.4 MMbbls net to Nelson).================================================================================(in '000 bbls) McDaniel & Associates Independent Reserves Update, July 2005 All reserves figures as of Dec 31, 2004, before royalty deductions -------------------------------------------------------------------------------- Proved Total Probable Proved + Producing Proved Probable Kozhasai field reserves (100%) Year end 2004 report 1,300 2,885 7,755 10,640 Increase 675 5,610 59,224 64,834 ------- ------- ------- -------Mid-year 2005 update 1,975 8,495 66,979 75,474 Total reserves net to Nelson Year end 2004 report 46,418 163,400 71,458 234,858 Kozhasai (50%) increase 337 2,805 29,612 32,417 Arman (50%) addition 2,365 2,365 - 2,365 ------- ------- ------- -------Mid-year 2005 update 49,120 168,570 101,070 269,640================================================================================Nick Zana, Nelson's Chairman and Chief Executive Officer, commented, "I am verypleased that the success of our drilling program is allowing McDaniel toattribute more reserves to Kozhasai. I have always believed that this fieldwould prove to be a major asset for Nelson. We have a second new well beingcompleted now and expect to have the third of the six pilot development wellscompleted by the end of the year."Nelson also announces the appointment of Paul Maxwell to the Board of Directorsof the Company. Mr. Maxwell's appointment was ratified at Nelson's AnnualGeneral Meeting on 10 June 2005, and became effective on that date. Mr. Maxwelldoes not own or control any shares in the Company.Since October 2004, Mr. Maxwell has been a Director and General Manager ofMeridian Securities (UK) Limited, a service provider to a number of investmentcompanies, based in London, UK. Prior to this, he served as Global Head ofStructured Trade Finance at KBC Bank NV (London, UK). Previously, he has alsoheld the position of Global Head of Commodity Finance, ABN AMRO Bank(Amsterdam, Netherlands). On the appointment, Mr. Zana commented, "I would liketo welcome Paul Maxwell to the Board. Paul has great experience of financialmarkets globally, and complements the Board's operational expertise."There are no other matters to be disclosed in relation to Schedule 2, paragraph(f) of the AIM Rules.For further information, please contact:----------------------------------------Fred Hodder, Senior Vice President Tel: 020 7495 8908 Nelson Resources Limited [email protected] Investor Relations Ann-marie Wilkinson / Nick Lambert Tel: 020 7861 3232 Bell Pottinger Corporate & Financial (London) Notes-----Nelson Resources Limited is an oil exploration and production company withoperations in the Republic of Kazakhstan. The Company established its presencein the Kazakhstan oil sector in 2000 and its management team, comprising bothinternational and Kazakh executives, has extensive experience of the Kazakhoperating and regulatory environment. The Company owns 50% of Kazakhoil AktobeLLP (KOA), a 50/50 joint venture between Nelson and Kazmunaigas, the nationaloil company of Kazakhstan, which is developing the Alibekmola and Kozhasaifields. The Company owns a 50% participatory interest in the North Buzachi oilfield located in western Kazakhstan (50% Nelson, 50% CNPC International(Buzachi) Inc.). In May 2004, Nelson purchased 60% of Chaparral Resources Inc.,which has a 60% interest in the joint stock company Karakudukmunai, operator ofand owner of a 60% interest in the Karakuduk field. In January of 2005, Nelsonacquired the 40% interest in this field previously owned by Kazmunaigas,bringing the Company's aggregate ownership interest in the field to 76%. InFebruary 2005, the Company also acquired a 50% interest in the Arman field,with the other 50% held by Shell. The Company also holds an option to acquire aminimum 25% participatory interest in two Caspian Sea offshore blocks, ZhambaiSouth and South Zaburunye. The Company maintains its operational office inAlmaty, Kazakhstan, which oversees the field joint ventures in westernKazakhstan. Nelson and its affiliated companies employ approximately 1,100people. Common shares of Nelson are listed on the Toronto Stock Exchange andLondon's Alternative Investment Market under the symbol NLG.Further information on Nelson Resources can be found on the Company's website at www.nelsonresources.com. Readers are cautioned that the preceding statements and information may includecertain estimates, assumptions and other forward-looking information. Theactual future performance, developments and/or results of the Company maydiffer materially from any or all of the forward-looking statements, whichinclude current expectations, estimates and projections, in all or partattributable to general economic conditions and other risks, uncertainties andcircumstances partly or totally outside the control of the Company, includingoil prices, imprecision of reserve estimates, drilling risks, future productionof gas and oil, rates of inflation, changes in future costs and expensesrelated to the activities involving the exploration, development, productionand transportation of oil, hedging, financing availability and other risksrelated to financial activities, and environmental and geopolitical risks.Discussion of the various factors that may affect future results is containedin the Company's recent filings with Canadian securities regulatoryauthorities. The Company disclaims any intention or obligation to update orrevise any forward-looking statements, whether as a result of new information,future events, or otherwise. The estimates of reserves and future net revenuefor individual properties may not reflect the same confidence level asestimates of reserves and future net revenue for all properties, due to theeffects of aggregation. Additional information on the Company's reserves may beobtained from the Company's most recent annual information form, available at www.sedar.com.ENDNELSON RESOURCES LIMITEDRelated Shares:
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