Ming Resources to Acquire Inke Petroleum

Ming Resources has conditionally agreed to acquire the entire issued share capital of Inke Petroleum Pty Ltd a privately held exploration company that has agreed to acquire the 2,297 square kilometer Inke oil and gas concession located in southwest Hungary.

Ming also proposes to undertake a placing of 100,000,000 shares at 5p each to raise pounds 5,000,000, change its name to Matra Petroleum plc, and seek re-admission to trading on AIM.

The Company's chairman, Craig Burton, said "After having examined a number of investment opportunities since listing in March last year, we believe that this acquisition represents the greatest value for our shareholders. The oil and gas interests held by Inke Petroleum are extensive and highly prospective, are located in an area of prolific hydrocarbon discovery with established market infrastructure, and include targets in an advanced drill-ready stage".

Following the acquisition, the Company will become a Central Europe focused oil and gas company. Hungary is prospective for the discovery of small to medium oil and gas fields (less than 35 million bbls of oil equivalent or 200 bcf of gas equivalent). These opportunities are typically too small for the "Majors" and there are few mid tier companies pursuing them. Fields of this size are potentially highly profitable in today's energy price environment.

Background on the Inke Concession

The Concession covers a substantial area and is one of the largest individual oil and gas concessions/permits in Hungary and is immediately bordered by a number of other oil and gas concessions/permits. The most notable being the Inke field ( approx. 100 bcf), the Savoly field ( approx. 14mmbbl) on the western boundary and the Mezocsokonya field ( approx. 150 bcf) that is surrounded by the Concession. These fields and the large number of fields in the region illustrate the prolific nature of this part of the Western Pannonian Basin in Hungary and its ability to generate and trap oil and gas.

Previous exploration in the Concession has generally targeted structural plays. The Company considers that the Concession is highly prospective for stratigraphic and combined stratigraphic structural plays that have been previously overlooked. The application of modern seismic processing techniques is likely to facilitate the identification of new structures and the presence of hydrocarbon reservoirs. There is evidence to suggest that the use of modern drilling and completion techniques will reduce the damage to reservoirs seen in previous wells.

The Concession contains a number of reported existing discoveries: Nagyatad oil field; Somogysamon-3 gas discovery; Pat and Vese gas discoveries; and the Nagyszakacsi-3 oil occurrence. Some of these discoveries appear likely to be economic using modern drilling and completion techniques and the current oil and gas price. The Company intends to fully evaluate the current economic potential of these discoveries.

A large amount of data has been collected over the Concession resulting from magnetic surveys, an estimated 1,600kms of seismic and reportedly 36 wells. A total of 17 prognosed structures have been drilled and, even without the benefit of modern seismic, 7 oil or gas discoveries were made, with the remaining 10 wells reported to have encountered hydrocarbon shows. In recent years a 110 sq km of 3D seismic was acquired and this is currently being reprocessed by Inke Petroleum.

Subject to the successful completion of the Inke Petroleum acquisition, the Company plans to drill a highly prospective target identified late last year, known as Blue Topaz 9. Drilling of this well is expected to commence in April 2006. This prospect is updip of an existing gas discovery and is covered by the 3D seismic recently reprocessed by Inke Petroleum. Blue Topaz 9 is a high quality target with an excellent chance of success. The Competent Person's Report in Part 3 of the Admission Document provides a best (mid) estimate of prospective gas resources from the Blue Topaz 9 Miocene objective of 44 bcf of gas (with a low estimate of 25.7 bcf and a high of 67.5 bcf) and the Triassic objective of 5.8 million bbls of oil (with a low estimate of 3.8 million bbls and a high of 8.5 million bbls).

Hungary represents a favorable operating environment, with the country actively promoting the development of its natural resources. The country also has an attractive fiscal regime, with a corporate tax rate of 16% and provisional tax rates of 2%. Within the Inke Concession, there is also a State royalty of 12% and a privately held royalty of 6%.

Board Restructure and Managing Director

Following re-admission to AIM the Company will have a strong Board with many years experience in the oil and gas sector and successful development of junior resource companies. The new Board and management team will comprise Craig Burton, Peter Hind and Peter Gunzburg. It is intended that the Company will appoint a European based Independent Non-Executive Chairman in due course.

Peter Hind will be the Company's Managing Director. Mr. Hind, a qualified Petroleum Engineer, has extensive technical and operational background having held senior positions in the oil industry since 1972. Most recently he was General Manager of Business Development for Premier Oil plc.

The Company and Mr. Hind propose to enter into an executive service agreement whereby Mr. Hind will receive a salary of #140,000 per annum and either the Company or Mr. Hind may terminate the agreement by giving 6 months notice. Under the terms of his appointment Mr. Hind is also entitled to 5,000,000 5 year options to subscribe for ordinary shares in the Company at 0.01pence each and 10,000,000 5 year options to subscribe for ordinary shares in the Company at 5.0pence each. The vesting of the options with Mr. Hind are subject to restrictions which are set out in the Company's Admission Document.

Subsequent to re-admission to AIM, Mr. Burton and Mr. Gunzburg will each be entitled to directors fees of #20,000 per annum. Messrs. Burton and Gunzburg are entitled to resign with immediate notice and their engagement will also terminate immediately without any termination benefit in the event they are not re-elected as directors by shareholders.

Related Companies
 Company: Ming Resourcesmore info
 - Ming Resources to Acquire Inke Petroleum (Mar 14)

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