17 May 2024
Indus Gas
Limited
("Indus"
or the "Company")
Corporate and Strategic
Update
The Company provides the following update to
shareholders:
Recent share
price performance
Following the recent significant decline in the
Company's share price, the Company notes that the share price has
now stabilised, but the Board believes that it is in no way
reflective of the Company's underlying long term value.
Financial
& operational update
The Company expects to report its audited
annual results for the year ended 31 March 2024 during September
2024. Based on management accounts, which haven't yet been subject
to audit, the Company expects to report revenue of at least
US$42.86m for the year end 31 March 2024. This is before the
Company has had discussions about take or pay.
Temporarily, the gas production has been
reduced on account of maintenance of the turbine. Reversion to
normal levels is expected in due course when maintenance is
completed.
As a reminder to Shareholders, the Company is
currently producing from the SGL field (63% participating interest)
as well as the SSF & SSG fields (90% participating interest).
All gas production from the three fields is currently being sold to
GAIL. Concentrated efforts are made to unlock more gas from deep
tight gas sandstone reservoirs Upper and Lower reservoirs. The
Petroleum & Natural Gas Regulatory Board (PNGRB) continues its
consultations for deciding on the pipeline route for evacuation of
the gas from the SSG and SSF fields.
The Company has recently been in receipt of a
technical report commissioned by the operator and prepared by the
Gujarat Energy Research and Management Institute (GERMI) which
reports 2P reserves, estimated to be commercially recoverable from
the PSC under the intended development plan, across the SGL, SSF
and SSG fields of, in aggregate, approximately 1.9 TCF (split 1,430
BCF across the SSF & SSG fields, and 440 BCF across the SGL
field). Reserves reported are gross, calculated according to PRMS
guidelines and with an effective date of 1 April 2024.
Strategic
alternatives
Given the recent share price performance, the
Company's Board and senior management are investigating a range of
strategic options, including appointing a top tier investment bank
to find strategic industry partners who have expertise in helping
us unlock our significant gas reserves through fracking.
The Company looks forward to updating the
market further in the future.
Qualified person sign
off
Mr Prateek Sisodia, an employee of
the operator, has approved the technical disclosure in this
regulatory announcement in his capacity as a qualified person under
the AIM Rules. Mr Sisodia is a good standing member of the Society
of Petroleum Engineers.
-ENDS-
For
further information please contact:
|
Indus Gas Limited
|
|
|
Jonathan Keeling
|
+44 (0) 20 8133 3375
|
|
Strand Hanson Limited (Nominated & Financial Adviser and
Broker)
|
|
|
Ritchie Balmer, Rory
Murphy
|
+44 (0) 20 7409 3494
|
