NGP Niche Grp.

TIDMNGP

RNS Number : 6118H

Niche Group (The) PLC

01 June 2011

Embargoed: 0700hrs 1 June 2011

The Niche Group plc

("Niche" or the "Company")

Drilling Update: Turkey

Niche, the AIM listed investment company with interests in gas exploration and development activities onshore Turkey, announces a drilling update provided by Oman Resources in which Niche holds loan notes convertible into a 35.7% shareholding.

Oman Resources has a 50% interest in four licences in Turkey in partnership with Arar Petrol ve Gaz AUPAS (the "Operator"), in which Niche is a 5% shareholder.

Block 4077 - Konya

-- Testing on Gulhanim-2 ("G-2") gas and oil discovery well to commence imminently

-- G-2 contains three separate potential hydrocarbon-bearing zones

-- Enzyme chemical compounds (designed to improve reservoir conditions) are onsite - testing to begin shortly following application of chemicals

-- Pilot gas bottling (CNG) plant being constructed and expected to be ready to bottle gas for sale to enable rapid monetisation in Q3

-- Onsite equipment will enable separation of oil for sale to refineries

-- Construction of pipeline expected to commence in Q4 2011

-- On completion of testing of the G-2 well the rig will move to Karapinar-2 for work-over operations

Block 4396 - Hatay

-- Hamam-1 well drilled to 855m - encountered three potential gas bearing sands

-- Net pay of 15m between 642-777m in Miocene sandstones

-- Initial flow test on a 28/64 choke tested up to 3.5 million cubic feet per day

-- Confirmed as a commercial gas discovery

-- Gas is sweet/dry composition with approximately 94-97% methane

-- Initial test production has commenced at up to 100,000 cubic feet per day for bottling onsite

-- Construction of pipeline tie-in expected to commence by Q3 2011

-- Strategy to develop field initially for shallow gas production and ultimately to explore the deeper significant potential for gas and oil

-- Scheduled to start Yesiltepe-1 well workover operations by end of June

Block 4395 - Hatay

-- Drilling operations in Kastal-1 are underway to reach target depth of 650m to test shallow gas potential

-- An additional gas potential zone encountered in Miocene sandstones at 300m

-- Construction of pipeline tie-in expected to commence Q4 2011

-- Strategy to develop field initially for shallow gas production and ultimately to explore the deeper significant potential for gas and oil

Block 4394 - Hatay

-- Well to test Ayseler structure (target 1500m), previously identified on seismic data, is planned for later in 2011

-- Testing of Cumalar-1A well is expected to commence Q1 2012

-- Strategy to develop field initially for shallow gas production and ultimately to explore the deeper significant potential for gas and oil

Competent Persons Report

A Competent Persons Report is currently being carried out by Senergy across the three Hatay Blocks and Block 4077, and is expected to be completed in June.

Nigel Little, Chairman of Niche commented,

"Having first invested in Oman Resources just twelve months ago, it is a remarkable achievement to be producing, or about to produce, from two wells on separate blocks. Oman Resources now has both an immediate cash generative potential and, more importantly, significant upside from further exploration, targeting both shallow and deeper hydrocarbon bearing formations on all four blocks."

Enquiries:

The Niche Group plc

Nigel Little

Tel. +44 (0) 7900 888 810

M: Communications

Patrick d'Ancona or Ben Simons

Tel. +44 (0)20 7920 2340

Daniel Stewart & Co. Plc - Nominated Advisor and Joint Broker

Oliver Rigby

Tel. +44 (0)20 7776 6550

Canaccord Genuity - Joint Broker

Charles Berkeley / Henry Fitzgerald-O'Connor

Tel: +44 (0) 20 7050 6500

Note:

The above information was approved by Enzo Zappaterra, Chief Geologist of Oman Resources, who is a Fellow of The Geological Society and a Certified Petroleum Geologist of the American Association of Petroleum Geologists, Division of Professional Affairs, with over 35 years experience in petroleum exploration and management.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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