31st Mar 2009 07:00
For Immediate Release 31 March 2009
Testing Update
Rift announces improved results following independent analysis of Puk-Puk flow testing
Rift Oil PLC (AIM : RIFT), the oil and gas exploration company with assets in Papua New Guinea ("PNG"), has received an analysis of the flow-test data on Puk-Puk from a qualified independent reservoir engineer, Joseph Johnston. The overall conclusions are summarised as follows:
1) Each of the three test zones has very high calculated permeabilities, consistent with the results from core and log analysis; and calculated Absolute Open Flow Potential is in the range 50-60 MMCFD for each zone, or a combined 150-180 MMCFD for the three zones.
2) There is no evidence of depletion during testing, consistent with the presence of sizable reserves; and all three zones were still cleaning up and improving at the completion of test operations.
3) The percentage of CO2 in the well stream is very low, which is excellent; although condensate to gas ratios are only in the range 1-3 barrels per million cubic foot of gas.
4) All potential pays were perforated, and other than at the base of the lowest sand in the Lower Hedinia, no gas-water contacts were encountered.
Chairman Ian Gowrie-Smith commented:
"We are very pleased with the conclusions of the Puk Puk-1 test report, which indicate that we have high quality reservoirs, fully charged with gas; and can anticipate production wells individually producing at rates in the order of 100 million cubic feet per day of gas. These rates, combined with the relatively shallow depth of the reservoirs and hence relatively cheap drilling costs, greatly enhance our ability to carry the project forward to profitable development."
Peter Mikkelsen FGS, AAPG, meets the criteria of a qualified person under the AIM guidance note for mining, oil and gas companies and has reviewed and approved the technical information contained in this announcement.
Enquiries:
Rift Oil plc +44 20 7340 9970
David Lees, Finance Director
RBC Capital Markets +44 20 7653 4804
Sarah Wharry
Buchanan Communications +44 20 7466 5000
Tim Anderson / Isabel Podda
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