Monitor Energy LtdABN 25 009 121 644QUARTERLY ACTIVITIES...

Monitor Energy Ltd
ABN 25 009 121 644
QUARTERLY ACTIVITIES REPORT
FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2007
Summary
Monitor Energy Ltd (“Monitor”, or “the Company”) has continued to advance its oil
and gas and uranium projects in the Kyrgyz Republic. This quarter has seen the
commencement of an extensive gravity survey of the oil and gas licences and the
approval for drilling at the Company’s Minkush Uranium Project, in joint venture
with Leopard Minerals Plc.
Kyrgyz Oil and Gas Projects
Monitor Energy holds a strategic and highly prospective suite of oil and gas
licences in the Kyrgyz republic, totalling in excess of 11,000kms².
During this quarter, the Company commenced an extensive gravity survey over
the oil and gas licences in the Kyrgyz Republic and has progressed discussions with
third parties for potential farm out.
The Company has contracted PT Tunggal Buana Utama, a gravity consultancy
company based in Indonesia, to conduct the gravity survey, using state of the art
gravity metres purchased by the Company. This survey is designed to identify
potentially shallow drill targets as well as allow better targeting of seismic surveys
planned for next field season.
The field data acquisition has progressed well, with the southern, At Bashi blocks
completed, and progress on the north eastern Issyk Kul licences is well advanced,
with completion anticipated in late November. Once this has been achieved,
data processing and interpretation will commence and should be completed by
the end of the coming quarter. Early processing results show good correlation with
Soviet era gravity and seismic but with improved accuracy and structural definition
of the Basin.
The Company has continued discussions with third parties for the possible farm out
of the Kyrgyz oil and gas licences and anticipates a favourable outcome in the
near term. This will include expenditure for seismic surveys and well drilling.
During this quarter, the company has continued reviewing oil and gas opportunities
in other parts of the world, with a focus on near term production. Several projects
are of interest to the Company, and the Company will continue this process into
the future.
Background Information on oil and gas in the Kyrgyz Republic
The Kyrgyz Republic in Central Asia is a former Soviet state which declared
independence in 1991. Since independence, the country has undertaken
economic and political reforms and has undergone a transition to a market
oriented economy. Oil and gas exploration in Kyrgyz Republic has been severely
curtailed since the country became independent in 1991 and funding under
former Soviet arrangements was no longer available. Interest in oil & gas
exploration has increased with Santos International Operations Pty Ltd farming into
Caspian Oil & Gas Limited’s projects by spending up to US$24 million on a staged
basis by June 2009.
Monitor is in a privileged position to participate in the evolving oil and gas sector of
the Kyrgyz Republic and is actively pursuing additional opportunities with potential
for early oil and gas production.
Central Asia is becoming one of the worlds emerging oil and gas regions, with
substantial fields located in China, close to the southern Kyrgyz border, Kazakhstan,
Uzbekistan, Tajikistan and Azerbaijan. The Chinese government has recently signed
an agreement with both the Kyrgyz and Kazak governments to build a supply
pipeline from Kazakhstan through Kyrgyzstan to supplement China’s
unprecedented demand for oil and gas. Exploration in the region has accelerated
over the past few years, with foreign investment reaching record levels.
Kyrgyz Uranium Projects
The Company entered into a strategic Joint Venture with Leopard Minerals Plc,
whereby the Company and Leopard combined their five uranium projects,
totalling 2,224 kms² in the Kyrgyz republic on a 50:50 cost share basis, with Leopard
Minerals as operator of the Joint Venture, given their expertise in uranium
exploration.
In this quarter, all relevant permits were acquired to commence a diamond drilling
program at the Kashkasu ll Project, located in central Kyrgyz Republic. Road
access has subsequently been upgraded and drill sites prepared. Field crews have
been deployed to prepare for commencement of drilling.
The Kashkasu II deposit was the focus of extensive exploration during the 1950s,
with underground workings to a depth of approximately 160m and strike length of
approximately 800 metres. Uranium mineralisation is hosted by coal measures and
adjacent sand stones. All sampled mineralised units remain open at depth, and
there is indication of increasing width and grade with depth.
Mineralised widths vary from about 0.5-8m, averaging about 2.5m. Sampled
grades typically vary from about 0.03-0.2% uranium, but are up to 1.4% in places.
The Company has copies of original geological and mineralisation models,
including mining block models, underground development maps and section
plans.
Yours sincerely
Jon Roestenburg
Managing Director