ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
23 May 2008
Australian Securities Exchange (ASX)
By ASX online
• Incremental awarded eight concessions in under-explored basin in
Central Turkey
• Huge untested structures
• Multiple oil and gas shows
• 150 million barrel or 1 TCF gas potential
Incremental Petroleum Ltd. (IPM) is pleased to announce that eight
exploration licences in Central Turkey have recently been awarded
(Figure 1). These licences significantly enhance Incremental's exploration
opportunities with significant oil and gas upside.
Figure 1. Licence locations and focus areas
ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
A number of prospects and leads have already been identified from
geological and geophysical studies. All licences are located within the
under-explored Tuz Golu Basin, south of Ankara. The large basin is
significantly under-explored, with only fifteen deep wells. Shows of oil
and gas have been noted in most of the wells, and both oil and gas has
been tested at sub-commercial rates.
A number of significant prospects have already been identified from old
seismic data.
The ‘Ernest’ prospect is situated 4 km updip of a well with gas shows. This
well was drilled into the caprock of the underlying reservoir system and
therefore did not encounter producible hydrocarbons. The potential
reservoir in the ‘Ernest’ structure is characterized by thick stacked
sandstone and shale sequences with potential to reservoir a trillion cubic
feet (Tcf) of gas or 150 million barrels of oil.
Figure 2. Cross-section of prospect ‘Earnest’
Oil prospect ‘Wesley’ is a shallow anticlinal trend adjacent to a number
of oil seeps, with tar formation (biodegraded oil) interpreted as the
sealing mechanism for the prospect. Several analogue billion barrel
oilfields exist in other parts of the world with a similar seal and geometry.
Further work is required to evaluate the volume of hydrocarbon fill in this
and adjacent structures, but the potential is in excess of 500 million
barrels.
Prospect Proposed well
• Closure of >30,000 Acres
• 4 km Updip of Gas Show Well
• Oil and Gas Shows and Seeps in Basin
• Thick Sands as Reservoir Objectives
TCF GAS POTENTIAL
150 MMB OIL POTENTIAL
Well with gas show
ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
Figure 3. Cross-section of prospect ‘Wesley’
The excellent fiscal regime in Turkey, plus the location of these
concessions in the vicinity of the energy-hungry city of Ankara suggests
that even a small oil or gas discovery in this area will be commercial.
Gerry McGann, Incremental’s managing Director said “the granting of
the bulk of this untapped basin with substantial prospectivity plus the new
major US acquisitions together provide substantial engines for the growth
of Incremental within the next 3-5 years. These new projects have the
potential to build on and then surpass Incremental’s Selmo oilfield
production base”
Incremental currently hold 100% in each concession. A US based group
will uptake a 50% interest in this project subject to certain conditions,
including specialist technical services, some funding and meeting
regulatory requirements. Incremental and the new partner plan to farmout
much of the ongoing work and expenditure on these prospects, and
expect the ongoing seismic and well work to be completed at no
significant cost to either party.
Gerard McGann
Managing Director
Seepage Prospect
• 2,500 m Thick Sandstones as Reservoir Objectives
• Potential for 500 MMBO Reserves
• Many Oil and Gas Seeps Along Anticline
Projected existing well
500 million BBL OIL POTENTIAL
Proposed well
ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
About Incremental Petroleum
Incremental was formed by a syndicate of petroleum industry experts in 2003
and listed on the ASX on 20 October 2005.
Its key strategy is to acquire low risk oil and gas assets and apply world class
technical expertise to develop the assets and their productivity.
Incremental’s major producing asset is the Selmo oilfield in Turkey, the
second largest oilfield in Turkey by cumulative production. The field has
estimated oil initially in place of approximately 500 million barrels, with a low
recovery factor (about 82 million barrels produced to date).
There are 47 wells at Selmo, 22 of which are still producing. The oil is sold at
the field gate and sent by truck to a refinery 40km away.
There is considerable scope for improved production and recovery at Selmo
– an oilfield which has a long life and provides an excellent net cash flow.
A second major asset in Turkey is the Edirne gas project in which Incremental
has a 55% interest. Seven gas discoveries have been made in seven wells
drilled in 2007 and 2008. The project is proceeding rapidly to
commercialisation.
Other assets in Turkey include a major exploration area in the Tuz Golu basin
south of Ankara.
Incremental paid a maiden dividend of 3 cents per share in October 2006, a
capital return of 5 cents per share in May 2007, an interim dividend of 3 cents
per share in October 2007 and has declared a final dividend of 3 cents per
share payable in July 2008.
In May 2008 Incremental finalised agreements with a US private entity to
acquire interests in five projects, totaling more than 19,000 acres in the prolific
hydrocarbon region of the San Joaquin Basin in central California, USA.
Funding of the acquisition was made by Placements totaling $10,000,000 to
local and overseas institutional and sophisticated investors, and a Share
Purchase Plan.
Incremental has offices in Perth in Western Australia and in Istanbul and
Ankara in Turkey.
ABN: 38 115 711 601
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
Locations of Incremental’s projects
IPM
incremental petroleum limited
