UMC Energy PLC : PNG Petroleum Project Update

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10 December 2013

UMC Energy Corporation

("UMC Energy" or the "Company")

PNG Petroleum Project Update

UMC Energy is pleased to update shareholders on the commencement of an extensive 2D seismic acquisition program over the offshore Petroleum Prospecting Licences (PPL), PPL374 and PPL375, held 100% by Gini Energy Ltd ("Gini").  UMC Energy holds a 30% interest in Gini, with CNOOC Ltd holding a 70% interest.  CNOOC is funding the entire cost of this survey.

BGP PNG Exploration has been contracted to acquire the new data utilizing its dedicated 2D seismic acquisition vessel, the Dong Fang Kan Tan No. 1.  This 65 metre vessel is Chinese registered and fully equipped with modern acquisition, recording, pre-processing and navigation equipment.

Acquisition commenced on December 8, 2013, with just under 3000 line kilometres of 2D data to be recorded as shown on the seismic grid image below.  The duration of the survey is expected to be approximately 30 days. 

Offshore Permits PPL374 and PPL375

As set out in the Competent Person's report published on 5 August 2013, prospectivity reviews of PPL374 and PPL375 identified eight untested structures. The 2D survey is designed to cover each of these leads so that each can be accurately mapped and further de-risked.  Initial probabilistic volumes of potential resources calculated by Monte Carlo simulations utilizing seismic data acquired in 2006 by Furgo provided the following recoverable Prospective Resources for alternative oil or gas cases for each of these leads within the offshore permits, prepared in accordance with the definitions and guidelines set out in the Petroleum Resources Management System (PRMS):

LICENCE	LEAD	GROSS PROSPECTIVE RESOURCES - OIL All values in MMbbls*			NET ATTRIBUTABLE PROSPECTIVE RESOURCES TO UMC ENERGY			Chance of Success (%)
		Low Estimate P90	Best Estimate P50	High Estimate P10	Low Estimate P90	Best Estimate P50	High Estimate P10
PPL374	Lead A	450	1284	2909	135	385	873	2
	Lead B/B1	787	2089	4468	236	627	1340	2.2
	Lead C/C1	47	135	310	14	41	93	0.6
	Lead D	338	1078	2658	101	323	797	2.8
PPL375	Lead E	70	208	480	21	62	144	1.5
	Lead F	127	361	810	38	108	243	1.4
	Lead G	52	133	289	16	40	87	2.1
	Lead H	59	200	473	18	60	142	5
Grand P50 Total Oil			5,421			1,626

*Note: MMbbls = million barrels of recoverable oil; assumes all oil with no gas fill in mapped closure

LICENCE	LEAD	GROSS PROSPECTIVE RESOURCES - GAS All values in Bcf*			NET ATTRIBUTABLE PROSPECTIVE RESOURCES TO UMC ENERGY			Chance of Success (%)
		Low Estimate P90	Best Estimate P50	High Estimate P10	Low Estimate P90	Best Estimate P50	High Estimate P10
PPL374	Lead A	559	1522	3286	168	457	986	2
	Lead B/B1	1048	2704	5603	314	811	1689	2.2
	Lead C/C1	65	180	397	20	54	119	0.6
	Lead D	399	1189	2762	120	357	829	2.8
PPL375	Lead E	93	227	464	28	68	139	1.5
	Lead F	136	339	701	41	102	210	1.4
	Lead G	57	144	299	17	43	90	2.1
	Lead H	97	368	894	29	110	268	5
Grand P50 Total Gas			6,673			2,002

*Note: Bcf = billion standard cubic feet of recoverable gas; assumes all gas with no oil fill in mapped closure

Chris Hart, Technical Director of UMC Energy, stated, "commencement of this 2D survey marks the start of major exploration activity and expenditure in the Company's PNG permits.  This new seismic data will be merged with the earlier 2006 Fugro 2D survey data so that detailed geological mapping and interpretation can be undertaken by the joint venture parties.  It is expected that the most robust prospects will then be covered by a 3D survey in due course to fully de-risk each prior to exploration drilling".

Dr Jeffrey Keetley, Director and Subsurface Specialist with 3D-Geo Pty Ltd, has reviewed and approved the technical information contained in this announcement in his capacity as a qualified person under the AIM rules. Dr Keetley graduated with a Bachelor of Sciences with Honours from the University of La Trobe, Australia, in 1996 and a Doctor of Philosophy (Ph.D) from the University of Melbourne, Australia, in 2001.

Enquiries:

UMC Energy Plc Chrisilios Kyriakou, Chairman	[phone]
Strand Hanson Limited(Nominated Adviser) Angela Hallett / James Spinney	[phone]
Shore Capital Stockbrokers Limited(Joint Broker) Jerry Keen / Stephane Auton / Patrick Castle	[phone]
HD Capital Partners LLP (Joint Broker) Philip Haydn-Slater / Paul Dudley	[phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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