NGP Niche Grp.

TIDMNGP

RNS Number : 8138J

Niche Group (The) PLC

06 July 2011

Embargoed: 0700hrs 6 July 2011

The Niche Group plc

("Niche" or the "Company")

Independent Evaluation of Hydrocarbons

Niche, the AIM listed investment company with interests in gas exploration and development activities onshore Turkey, has received results of the first independent evaluation of the recoverable hydrocarbons (the "CPR") within Oman Resources Ltd's ("Oman") assets in Turkey. Niche holds loan notes convertible into a 35.7% shareholding in Oman. The CPR was carried out by Senergy (GB) Ltd ("Senergy") across licenses AR/ARR/4077 ("Block 4077"), AR/ARR 4396 ("Block 4396"), AR/ARR/4395 ("Block 4395") and AR/ARR4394 ("Block 4394") (together the "Licences") in which Oman has farmed in to a 50% working interest.

The CPR has shown:

-- Best estimate gross recoverable Reserves, Contingent and Prospective Resources of 397.7 bcf (billion cubic feet) of gas across the Licences;

-- Short-term ability to upgrade Contingent and Prospective Resources to Reserves with the current ongoing drilling and testing activity.

A summary of the CPR results is set out below:

 
                                              Net to Oman 
                          Gross Recoverable    Recoverable 
                                (Bscf)          (Bscf) * 
        Reserves                 2P                2P 
                                30.8              12.6 
 
 Contingent Resources            2C                2C 
                                140.7             57.3 
 
 Prospective Resources          Best              Best 
                                226.2             92.1 
 
    Total Gas (Bscf)            397.7             162 
 

* Net to Oman after deduction of Government Royalty of 12.5%

Hatay-4396

The CPR shows best estimate gross Recoverable Reserves of 30.8 bcf in Hatay-4396, relating solely to Miocene sand reservoirs penetrated by the Hamam-1 and Yesiltepe-1 wells, with these wells having successfully produced gas. The Hamam-1 well is currently undergoing test production and is selling natural gas into the local market.

The current programme envisions drilling a number of production wells during the balance of the year into the Hamam and Yesiltepe reservoirs to increase production and revenues.

Hatay-4395

Senergy has attributed only Prospective Resources to Hatay-4395. However, following hydrocarbon shows in the Kastal-1 well, it is anticipated that the Prospective Resources would be upgraded to Reserves on testing of the well, which is expected to occur during Q3.

Hatay-4394

Senergy has attributed only Prospective Resources to Hatay-4394. Budgeted drilling and work-over operations in late 2011-early 2012 should enable substantially all the attributed Prospective Resources to be upgraded to Reserves and Contingent Resources.

Konya-4077

The two most recently Arar-drilled wells on the licence, Gulhanim-1 and Gulhanim-2 have both encountered hydrocarbons across multiple horizons. The Gulhanim-1 well flowed gas and Gulhanim-2 flowed gas and oil to surface. Gulhanim-2 is currently being cleaned up prior to being placed on production test. Senergy has attributed Contingent and Prospective Resources to Konya-4077 including the Contingent Resources attributed to the historical Karapinar-1 and Karapinar-2 wells after re-evaluating the electric logs as a consequence of the positive results from Gulhanim-2 well.

In addition, Prospective Resources have been assigned by Senergy to a number of untested fault blocks on the Konya structure. Future exploration drilling will most likely provide an opportunity to mature these Prospective Resources to Reserves and Contingent Resources.

Nigel Little, Chairman of Niche, commented,

"This first independent assessment of the four blocks underpins Oman's expectations of gas volumes across the acreage. The operator is engaged in a work programme which should allow significant upgrading of resources.

Niche has long been of the opinion that Oman's blocks, held in partnership with one of Turkey's most established licence holders, offer great potential for near-term gas production with significant upside from further exploration."

Enquiries:

The Niche Group plc

Nigel Little or Alistair Stobie

Tel. +44 (0) 203 286 3350

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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