Independent Resources Bullish on Italian CBM Project

Independent Resources plc has received encouraging new resource estimates for its Italian coalbed methane (CBM) prospect at Fiume Bruna, north of Grosseto, central Italy.

The results indicate the presence of a significant resource and that, under high case assumptions, Fiume Bruna could contain up to 215 billion cubic feet (BCF) of in-place methane gas.

The estimates, which were produced by NorWest Questa Engineering (NQE), a leading US consultancy group with specialist CBM expertise, help support Independent's expectations that Fiume Bruna could become Italy's first commercial coalbed methane project.

The results follow the completion late last year of a stratigraphic well that cored approximately 7 meters of coal in one seam. Initial analyses of these coal cores show that, in the medium case, the resource tallies closely with the estimate provided at the time of Independent's admission to the AIM market in 2005.

The new analysis estimated the in-place CBM resource from the Fiume Bruna permit for three cases, the sole variable between these cases being the gas content of the coal, and how this changes over the license area.

Case       CBM resource (BCF)
High	   215
Medium     161
Low        107

Over the coming weeks additional coal analyses will be performed that should further refine these estimates of the CBM resource.

Independent's next activities on the Fiume Bruna license will start with acquisition of new seismic data, followed by a pilot drilling and production testing phase in the heart of the coal basin.

The new estimates have been produced by NQE on behalf of Independent. NQE is a leading US-based petroleum engineering and geoscience consultancy group with a strong CBM specialty.