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Niche Group notes progress of its 1st oil & gas investment in Turkey

The Niche Group (LON:NGP) is already seeing progress from its first investment in the oil and gas sector, as Oman Resources (OTC:OR) and its partners extend exploration efforts around their major onshore gas discovery in the Tuz Golu basin, Turkey.

The company announced the OR strategic investment in May, alongside its proposal to raise £5.685 million through a share placing.  Through the deal, Niche will acquire 17.33% of OR via a convertible loan agreement, to provide OR with £5.2 million. The financing enabled OR to satisfy certain payment obligations in relation to its interests in the Tuz Golu basin exploration licence. Under a farm-in agreement, with Arar Petrol ve Gaz AUPAS (Arar) and its associate, OR has an option to acquire a 50% interest in exploration licence AR/ARR/4077 (4077 Block).

The 49,821 hectare block in the Tuz Golu basin hosts a major onshore gas discovery which, according to Arar’s estimates, contains 80 billion cubic feet (bcf) of recoverable gas.

Additionally, the block also hosts two further exploration areas, to the east and thewest, which according to Arar's estimates contain reserves of 330bcf with an upside of 750bcf of recoverable gas. Arar and OR intend to develop the 4077 Block, which is located just 8 miles from existing pipeline infrastructure, and to carry out further exploration activity on the licence.

As the project operator, Arar has initiated the acquisition of a 100 line-km 2D seismic programme on the West Area Prospect of the 4077 Block. The seismic programme’s primary objective is to more accurately define the structural geometry of the West Area Prospect and to provide information ahead of drilling.

The partners also believe that the new seismic data will help verify the subsurface structure of the area currently defined by three gas wells including the Karapinar-1 work-over well, which is planned for the OR funded programme.

Two full depth wells are also being funded by OR, including Gulhanim-2 which was recently spudded.
Gulhanim-2 initially reached a depth of 503 metres on 31 May 2010, and has been temporarily suspended to enable the seismic programme to proceed uninhibited. The drilling of the Gulhanim-2 well is expected to resume next month, with the additional benefit of data acquired from the seismic programme.