TORONTO--(BUSINESS WIRE)--Polo Resources Limited (AIM, TSX: POL), (“Polo” or the “Company”) the natural resources investment company with interests in gold, oil and gas, coal and iron ore, today has received an operational update on Signet Petroleum Limited (“Signet”) activities up to 30 November 2012.
Namibia - Block 2914B
During 2012, Signet’s focus for its Namibian acreage has been the acquisition, processing and interpretation of approximately 5,000 km of 2D seismic over Signet’s Block 2914B, offshore Namibia. The 2D seismic was acquired as part of a 7,000 km multi-client 2D program operated by Spectrum ASA and Seabird Exploration Norway AS using the seismic vessel the Northern Explorer. The program was shot during the first half of 2012 with an average spacing of approximately 10 km. Whilst the interpretation of the seismic continues, initial interpretation by Signet has identified a potentially major structure (“Prospect A”) which will now be the focus of intensive study and evaluation by Signet.
The initial interpretation by Signet suggests that Prospect A may be a significant four way dip closure located approximately 90 km to the West-South-West of the nearby Kudu gas field operated by Tullow Oil plc in approximately 2,000 m water depth. Whilst this interpretation is at an early stage, initial estimates calculated by the management of Signet suggest that the structure has an area of approximately 30km by 25km.
The initial interpretation suggests that cretaceous sands are analogous to the upper gas zone in the Kudu gas field, with additional potential in the deeper horizons.
The next steps will be to dedicate further technical resources to the interpretation of the 2D data set and to conclude Signet’s interpretation of Prospect A in particular. Following the completion of this work, Signet intends to commission an independent resources report from an international engineering firm in the first quarter of 2013.
Further evaluation and de-risking of Prospect A and others identified in the block will involve the acquisition of 3D seismic and exploration drilling for which Signet intends either to raise equity finance or seek a farm in partner.
Signet holds a 75 per cent. stake in, and is operator of, Block 2917B under a Petroleum Agreement signed with the Government of the Republic of Namibia.
Sierra Leone - Block SL-7A-10
In the third quarter of 2012, Signet was selected by the Petroleum Directorate of Sierra Leone as one of two winning bidders for Block SL-7A-10 offshore Sierra Leone following the 2012 bid round.
Following negotiations with the other winning bidder, Minexco Petroleum (“Minexco”), Signet was awarded a 10 per cent. participating interest in the block. Minexco has agreed to carry Signet for its share of the signature bonus and exploration program up to and including the first exploration well.
Tanzania – Mnazi Bay North
In June 2012, Signet completed a 100 square kilometre 3D seismic survey over the Mnazi Bay North Block, offshore Tanzania. Initial interpretation of the 3D seismic is consistent with Signet’s opinion that there is a substantial up dip extension of the BG/Ophir Chaza 1 gas discovery drilled near the boundary line between the BG/Ophir and Signet blocks.
Signet has commissioned an independent technical and commercial evaluation by UK engineering consultancy Challenge Energy, which will be followed by a formal sales process for the divestment of the block in Q1 2013.
Burundi – Block C and Lake Tanganyika Democratic Republic of Congo
Refurbishment of the Tanganyika Explorer in partnership with Surestream Petroleum continues as do preparations for the acquisition of proprietary 2D seismic in Burundi and the 10,000 km multi-client seismic program on the Democratic Republic of Congo, western side of the Lake. Signet expects the vessel to commence acquisition in April 2013. Signet is also discussing partnership and marketing models with major international seismic companies. In November, 2012, Signet launched the marketing of the multi-client project at the Africa Oil Week conference in Cape Town.
Benin – Block 3
Signet has a 90 per cent working interest and is operator of Block 3 offshore Benin. Recent work has focussed on a review of the existing seismic and other technical data for the block and surrounding areas.
Executive Co-Chairman and Managing Director of Polo, Neil Herbert commented:
“Signet has successfully worked to broaden and strengthen the prospective quality of its asset base. The completed exploration work has yielded some exciting results, while the planned, thorough work program should grow the value and potential of the company.
“Working effectively in highly prospective areas, Signet Petroleum is a valuable part of Polo Resources’ portfolio. We look forward to further updates on its progress.”
The technical information contained in this announcement has been reviewed by Stuart Munro, the Country Exploration Manager of Signet Petroleum Ltd. Stuart E Munro is a Member of the AAPG of United States of America and a B.Sc in Geology and Geophysics from the University of Aston In Birmingham and an M.Sc from the University of Wales. Stuart E Munro has sufficient experience (38 years) of seismic interpretation to qualify as a Qualified Person for the purposes of this announcement and has reviewed the text of this announcement and is satisfied with the accuracy and precision of the release by Polo Resources Limited.
About the Company
Polo Resources is a natural resources investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects. For further details on Polo Resources please see our website: www.poloresources.com.
The AIM Market of London Stock Exchange plc does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding potential values, exploration activities including seismic and drilling analysis, equity financings and divestitures, potential farm-in partners, the commissioning of reports and analysis and the future plans and objectives of Polo Resources Limited. There can be no assurance that such statements will prove to be accurate, achievable or recognizable in the near term.
Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Polo Resources Limited assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
Statements relating to 2D seismic interpretation by the Company are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the structures identified by 2D seismic interpretation exist, or take the form and shape anticipated by the party conducting the interpretation. There is no certainty that any portion of the structure will exist in the shape size anticipated by the interpretation. If discovered, there is no certainty that it will contain commercially recoverable resources.
Although Signet Petroleum Ltd. believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Signet Petroleum Ltd. can give no assurance that they will prove to be correct. The forward-looking statements contained in this press release are made as of the date hereof and Signet Petroleum Ltd. undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.