Rheochem plc announced that Zeus Petroleum Ltd has received an updated Competent Persons Report from RPS Energy for its UK North Sea block 14/11. Rheochem owns a 50% interest in Zeus which has a 100% interest in block 14/11.
Block 14/11 is in the Outer Moray Firth Basin Central North Sea and covers an area of 217 Km2. It is approximately 15km northwest directly on trend with the Athena oil discovery in block 14/18b and is thought to be in a similar structural setting.
This CPR has substantially increased best estimate recoverable prospective resources for this block from 55 million barrels to 93 million barrels and increased the high side estimate from 144 million barrels to 392 million barrels.
In addition Rheochem notes that Ithaca Energy filed its Annual information form with SEDAR, which referenced an updated reserves report for the Athena Oil project in which Zeus has a 10% interest. This report was prepared after testing the successful 14/18b-16 well and lifted 2P reserves previously defined by RPS Energy from 16.2 million bbls gross to 29.7 million bbls gross which equates to 1.48 mm bbls net to Rheochem. This is a significant increase from the 0.5 million barrels of 2P reserves previously ascribed to Rheochem.
"We are obviously very pleased that last year's seismic shoot on block 14/11 has resulted in such an increase in resource potential. Zeus is currently in discussions with rig management companies regarding the availability of rig slots for mid 2009 and will seek farm in partners for this block," Chief executive Rheochem said. "Zeus also intends to shoot further seismic in July 2008 over blocks 12/15, 13/11, 13/12 and 13/13 in which it has a 100% interest under license P1393. We are hopeful that this extra seismic will confirm a drillable prospect from one of the four previously defined leads on these blocks. Zeus has committed to drill one well on this license by December 2009 contingent on a suitable target being identified by the newly acquired seismic."
"Since purchasing Zeus in September 2006, Rheochem has participated in one seismic shoot and three North Sea appraisal wells, with a further seismic shoot and appraisal well planned for later this year. This is a lot of activity for a small exploration company and the improvement in prospective resources and reserves is a direct outcome from this activity, the value of which will ultimately be reflected in Rheochem's future balance sheet," said Chief Executive Rheochem.
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