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Enegi Oil's early assessment of Clare Basin points to huge gas potential

Last updated: 17:48 30 Nov 2012 AEDT, First published: 18:48 30 Nov 2012 AEDT

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A very early assessment of Enegi Oil’s (LON:ENEG) Clare Basin onshore licence points to its huge gas potential, likening the geology to the prolific Marcellus and Woodford shale plays in the US.

So far the group has only evaluated existing technical data, though it has done so with today’s modern technology.

It also brought in the respected independent consultant Fugro Robertson to prepare an assessment of in-place resources covered by the licence area.

Based on detailed analysis of the area within a 130 line kilometre (km) seismic grid, Fugro provided a preliminary resource estimate of 3.62 trillion cubic feet (tcf) of gas initially in place, based on a likely average porosity of 7%. Within that, there is a high grade zone containing a potential 1.23tcf of gas in place.

The estimate for the whole option area is a not-insignificant 13tcf of gas initially in place.

The company currently has a licence option over 495 square-kilometres of the Clare Basin and plans to convert this into an exploration licence.

It will then carry out a more thorough formal exploration programme, which it hopes will firm up its early findings.

Chief executive Alan Minty said: "Clare Basin is a highly prospective project and we are delighted to be involved at this early stage.

“Our findings and the report from Fugro have further endorsed management's belief that the Clare Basin has a strong best case investment profile.

“The whole acreage appears to be very prospective and we are particularly excited by the area at the centre of the existing seismic grid which we have defined as high grade.

“Whilst these results are very encouraging, further exploration work is required to identify specific areas of prospectivity and potential future drilling targets.

“We look forward to providing details of our planned work programme and development plan once we have been awarded an exploration licence.

 “Clare Basin is also a further step forward in the company delivering its strategy of developing a balanced portfolio of real options from which to grow our business.

“This asset, whilst still in the early stages of exploration, has had a good deal of work carried out across it.

“As well as facilitating the de-risking of the assets, results of the work to date show that it has the potential to contain very real value for the company."


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