IB Daiwa Announces Gas Discovery at Lodore's Kami Prospect; Revenue from Kami will Commence in Q2 2006, Adding to the Contribution from Darcy Energy.Tokyo, Japan, Jan 13, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - IB Daiwa IB Daiwa Corporation JASDAQ: 3587 established in September 1947. The group listed in over-the-counter market in the Tokyo Securities Dealers’ Association in June 1963. By December 2004, the Company cancelled this registration and listed itself on Jasdaq. Corporation (JASDAQ Jasdaq See: Japanese Association of Securities Dealers Automated Quotation System :3587), the only pure Japanese natural resources company, has announced the successful discovery of a well-formed and commercially exploitable gas reservoir gas reservoir In geology, a naturally occurring storage area, characteristically a folded rock formation, that traps and holds natural gas. The reservoir rock must be permeable and porous to contain the gas, and it has to be capped by impervious rock in order to form an at the Kami prospect of its recently-acquired wholly-owned subsidiary, Lodore Resources ("Lodore"). Seiki Takahashi, President of IB Daiwa commented, "We are delighted to announce the discovery of commercially viable gas reserves at Kami, the first of our ten or more prospects at Lodore. This discovery has validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. IB Daiwa's decision to acquire Lodore and the promising prospect leases owned by it. Through this acquisition, we have not only acquired commercially exploitable reserves, but also an experienced and capable exploration management team - all proved by the results of this first test prospect." Exploration at the Kami prospect, which began in September 2005, reached its target depth of approximately 4,300 meters (14,120 feet) on January 6, 2006. Interpretation of the drilling logs indicates a gross gas column of approximately 33 meters (107 feet) which the Lodore and joint-venture partner, Pel-Tex1, engineers believe is associated with 7 to 12 bcf of gas. Given the good quality sands and high pressures seen in the well, this reserve volume is commercially very attractive and management has decided to prepare the well for production and expect it to flow at substantial daily rates. An independent formal reserve audit is not possible until the well has produced gas for a period of time, and will be conducted as soon as is practically possible. In addition, below the discovered gas column there were indications of oil which the Lodore and Pel-Tex geologists A geologist is a contributor to the science of geology. Geologists are also known as earth scientists or geoscientists. The following is a list of famous or notable geologists. will study, together with the shallower deposits of gas found just above 3,700 meters (12,000 feet). Together these two indications may indicate further production potential for the Kami prospect. It is expected that the first gas from the Kami prospect could be flowing and sold into the US gas pipeline grid within a few months. Assuming gas prices in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east of US$10/mcf and , reserves of 7 to 12 bcfe, the mean revenue to be generated from the Kami well would be over US$90 million over the life of the Kami reserve. IB Daiwa will provide an update on the anticipated impact on its results, taking into account the necessary royalties and financing-related costs, as soon as a full evaluation is completed. Dr. Bob Williams This article is about the rugby player. For the college basketball coach, see Bob Williams (basketball coach). For the baseball player, see . Bob Williams was an Australian rugby league player for the Eastern Suburbs club. , Executive Chairman of Lodore Resources added, "This is a great start to our drilling program with our joint venture partner, Pel-Tex* and augurs augurs Roman officials who interpreted omens. [Rom. Hist.: Parrinder, 34] See : Prophecy very well for the rest of our prospects in this exciting portfolio. When Kami's reserves are independently certified See certification. - which will require some months' of production history - I am confident that they will show a return on drilling costs for the Kami prospect of 500 to 1,000 per cent. This discovery provides an exciting contribution to IB Daiwa, given the ten or more other prospects we have - some of which are many times larger in scale than Kami. The Big Mouth Bayou bayou (bī`ō, bī`  ) [Louisiana Fr.; from Choctaw bayuk=small stream], term used mainly in U.S. prospect, for example, which we are
about to drill, has a gross unrisked mean reserve of 732 bcfe, which is
some 50 times larger than the Kami reserve.Financial Forecasts Raised on Contribution from Darcy IB Daiwa also announced an upgrade to its fiscal 2005 financial results, incorporating the contribution from the producing assets from the recently acquired Darcy Energy. These upgraded forecasts do not include potential contributions from Lodore, which are currently under evaluation. With the revenue contribution from Darcy, IB Daiwa has reduced its previously forecast losses for FY 2005 from Yen 345 million to Yen 207 million. Seiki Takahashi concludes, "We have had a great start to 2006. With the disposal of our non-core subsidiaries, we are now fully focused on the natural resources businesses. The assets from Darcy Energy are now contributing to our current financial year. Ongoing development work at Darcy is expected to increase production levels from the recent increases seen over recent weeks as new wells have been brought on stream. This, combined with the exciting gas discovery will add significantly to our producing reserves. All these developments show we are on track to reach our goal of returning the company to profitability, making IB Daiwa the only pure Japanese natural resources listed company listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → ." * Lodore (75%) is working in partnership with joint venture partner Pel-Tex (25%) in developing the prospects in its current portfolio. Pel-Tex is the operator of the projects. At the exploration stage, the costs are borne by Lodore. From the production stage, the costs will be borne in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the working interest. IB Daiwa's Exploration Portfolio Lodore Resources, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of IB Daiwa, is an upstream From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger oil and gas company focused on the exploration and exploitation of deep gas opportunities in Southern Louisiana and Texas. Lodore has a portfolio of world class prospects being developed in conjunction with premier partners. Lodore's Current Portfolio of Gas Assets - Lodore has a world class portfolio of deep gas exploration and development assets in the richest and most stable energy market in the world. - The combined Expected Monetary Value of just the mature prospects, Net to Lodore, is in the region of US$900 million. - Management of Lodore and their partners have a proven exploration and development track record of proving hydrocarbon hydrocarbon (hī'drōkär`bən), any organic compound composed solely of the elements hydrogen and carbon. The hydrocarbons differ both in the total number of carbon and hydrogen atoms in their molecules and in the proportion of hydrogen reserves and have deep knowledge of the assets, local geology geology, science of the earth's history, composition, and structure, and the associated processes. It draws upon chemistry, biology, physics, astronomy, and mathematics (notably statistics) for support of its formulations. and regulatory environment. - The USA is the world's largest energy market, with established distribution infrastructure through which the Company can quickly realize revenue from its discoveries. Southern Louisiana Portfolio - In addition to the recently drilled and successful Kami prospect there are 12 Deep Gas development and exploration prospects operated in Joint Venture with Pel-Tex. - Total mean Gross unrisked reserves for the remaining undrilled Southern Louisiana prospect portfolio are estimated at over 2 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. cubic feet of gas.
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Prospect Estimated Dry Gross Unrisked
Hole Cost Mean reserves
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US$m bcfe
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Big Mouth Bayou Deep 10.5 732
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Big Mouth Bayou Shallow 2.5 33
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Northwest Kaplan 8.5 36
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Endeavor 10.5 147
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Pumpkin Ridge 14.0 632
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East Pumpkin 14.0 217
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Little Cheniere 8.5 389
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68.5 2,186
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All figures are on a Gross 8/8ths basis
- Lodore's net working interest ("NWI NWI Northwest Indiana NWI National Wetlands Inventory NWI New Work Item NWI Newsworld International (former channel 366 on DirecTV) NWI National Wraparound Initiative (Seattle, WA) ") in the prospects varies between 37.5% to 75% and will ultimately depend upon the extent to which Lodore farms out its interest in the prospects. - On a risk weighted basis the mean reserves Net to Lodore could be 700 billion cubic feet and, based on realistic assumptions regarding the NWI retained, deliver an Expected Monetary Value Net to Lodore of US$800 million. - Three of the prospects to be drilled in the near term have been independently assessed as having a probability of success in excess of 50%. Padre Island Padre Island (päd`rē, păd`rē), low, sandy island, c.115 mi (185 km) long, less than 3 mi (4.8 km) wide, S Tex. It is characterized by large, irregular sand dunes, sparse vegetation, and a strong prevailing wind off the Gulf of Mexico. Portfolio - Lodore owns a working interest of approximately 37.5% in the exploration leases at Padre Island, south Texas in partnership with Golden Gate Petroleum Limited ("Golden Gate") (ASX ASX See: Australian Stock Exchange : GGP GGP GPS (Global Positioning System) Guidance Package GGP Gateway-Gateway Protocol GGP Gotta Go Pee GGP Global Geodynamics Project GGP Globalization, Growth and Poverty (Canada) GGP Gotta Go Potty ). - Padre Island is a world class portfolio of deep gas exploration prospects located in a rich hydrocarbon basin surrounded by other lease areas with proven producing gas wells. - To date five deep gas wells have been drilled on the Padre Island leases, all with gas produced to surface, and 3 are currently on production. - Over 20 prospects and leads have been identified and 3 prospects are ready to drill. Lodore and Golden Gate intend to drill these three deep gas prospects within the next 12 months. - The three prospects, Murdock South, Manzano and Plum Deep, have a combined mean Gross unrisked reserves of 862 bcf. - The Expected Monetary Value of just the three ready to drill prospects could be in excess of US$115million, Net to Lodore. IB Daiwa IR Website (01/11/06): http://www.ibdaiwa.co.jp/pdf/pr_20060111_2_en.pdf About IB Daiwa IB Daiwa was incorporated in Japan in September 1947 and was engaged in the manufacture and sale of industrial use machine sewing sewing: see needlework. thread and twisted yarns. The Group was also involved in the property business and the import and sale of high brand kitchenware. On June 24, 2005, the shareholders of IB Daiwa elected and approved a new board of directors. The new board has begun to restructure the management and operations of IB Daiwa and has signified sig·ni·fied n. Linguistics The concept that a signifier denotes. [Translation of French signifié, past participle of signifier, to signify.] Noun 1. its intention to supplement the existing business with investments in the natural resources, particularly the oil and gas sectors. IB Daiwa announced on December 27, 2005 the disposal of non-core subsidiaries to further concentrate on natural resources businesses. For further information please go to: www.ibdaiwa.co.jp Source: IB Daiwa Contact: IB Daiwa Keisuke Matsuno Tel: +81-3-3264-1378 Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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