Melbourne, Nov 3, 2008 AEST (ABN Newswire) - Marion Energy Limited (ASX:MAE)(PINK:MAEJF) announces significant increase in gas resource in place following receipt of the preliminary independent report.
The resource potential study commissioned by Marion Energy Limited (ASX:MAE) and undertaken by the independent consulting engineering firm of Ryder Scott Company, L.P. (Ryder Scott) has concluded its preliminary analysis of the resource potential of certain non producing reservoirs under Marion's Utah leases. This study's preliminary results indicate 32.5 trillion cubic feet ("Tcf") of resource gas in place in the Emery Coals and the Mancos Shale at Marion's Clear Creek and Helper projects. Ryder Scott is currently completing its analysis of recovery factors and final report which will be announced to the ASX later when delivered to the Company.
A second resource study of the resource potential in the non producing Blackhawk Coals under Marion's leases in the Helper area and conducted by the independent engineering firm of William H. Cobb and Associates (Cobb) has also been completed.
Results from this study indicate a resource in place of 1.0 trillion cubic feet of gas with an expected recovery of 603 billion cubic feet of gas, a recovery factor of 60%.
Pending the provision by Ryder Scott of their recovery factor analysis, Marion management has applied a range of likely recovery factors to the total resource of 32.5 Tcf of potential natural gas resource as estimated by Ryder Scott resulting in an estimate of 1.8 to 3.7 trillion cubic feet of natural gas resource recoverable in the Mancos Shale and Emery Coals. This estimate, together with the recoverable Helper Blackhawk Coals gas resource as estimated by William H. Cobb and Associates, gives a total estimated recoverable resource within a range of 2.4 and 4.3 trillion cubic feet of gas and a total potential resource in place of 33.5 Tcf (refer below for further details). This estimate is a substantial increase of the previous estimate of 1.4 Tcf potential resource in place and a potential recoverable natural gas resource of 0.96 Tcf at Clear Creek from the Emery and Ferron coals.
Note: the above estimate does not include any reserves associated with the conventional reservoirs which were assessed in June 2007 by Cobb at 312 Billion Cubic Feet of 1P and 2P gas reserves.
Details of the assessed resource are set out as follows:
Ryder Scott Company, L.P.
The preliminary resource estimate of gas in place as determined by Ryder Scott Company, L.P.:
Emery Coals at Clear Creek: 814 billion cubic feet of gas in place
Mancos Shale at Clear Creek: 5.5 trillion cubic feet of gas in place
Mancos Shale at Helper: 26.2 trillion cubic feet of gas in place
Cobb & Associates
The report prepared by Cobb & Associates estimates the resource potential as follows:
Blackhawk Coal in place: 1.0 trillion cubic feet of gas
Blackhawk Coal recoverable resource: 603 billion cubic feet of gas
Total Resource Recoverable Potential Estimate
The Company estimates the recovery factor for the Emery Coals at Clear Creek to be 70%, and between 4 and 10% for the Mancos Shale at Clear Creek and Helper, yielding a recoverable resource potential in these reservoirs of between 1.8 and 3.7 trillion cubic feet of gas.
In conclusion, there is an estimated 33.5 Tcf of estimated natural gas resource in place in the Mancos Shale and the Emery and Blackhawk Coals at the Company's projects in Utah. The estimate for the total recoverable resource potential for these reservoirs is between 2.4 and 4.3 Tcf of natural gas.
These resource estimates are in addition to the 1P and 2P Ferron sandstone reserves at Clear Creek and other reserves at Helper and Oklahoma of 312 Bcf announced in June, 2007 and which are being upgraded in the reserve report currently in preparation.
Note: Potential resources are not certifiable reserves and have more risk associated with their size and commerciality than certified reserves.
Commenting on the results Jeffrey Clarke CEO of Marion Energy said: "These studies reinforce the significant value of the Clear Creek and Helper assets to the Company and demonstrate the large potential for significant value added at Helper. Both projects are clearly of major size. This is in addition to the proven and probable reserve values already established which are expected to increase further in the soon to be completed reserve report."
Qualifications of Certifying Engineers.
Ryder Scott Company, L.P. was formed in 1937 and is a leading firm of petroleum engineers. It provides quality reservoir engineering, formation evaluation and geological services to the petroleum and natural gas industry. Ryder Scott has consented to the use in this public filing of certain data contained within its resource in place report.
William M. Cobb and Associates, Inc was formed in 1983 and is a leading firm of petroleum engineers. It provides quality reservoir engineering, formation evaluation and geological services to the petroleum and natural gas industry. Cobb and Associates has consented to the use in this public filing of certain data contained within its resource report.
Contact
North American Contact:
Mr Jeff Clarke
Managing Director & CEO
Ph: +1-214-244-7690
Email: jclarke@marionenergy.com
Australian Contact:
Mr Peter Collery
Executive Director and Company Secretary
Ph: +61-3-8862-6466
Email: peter@marionenergy.com.au
| ||
|
