Mnazi Bay Resource Estimate Update

 

Artumas Group Inc. (Artumas) is pleased to provide a summary of the recent third party RSA-APA (APA Petroleum Engineering Inc.) resource estimate update, dated March 21, 2007, for the Mnazi Bay Gas Field in Tanzania.

 

The Mnazi Bay Gas Field is the first field to be appraised within the Company's Mnazi Bay Concession through its re-entry and drilling program involving MB-1, MB-2 and MB-3.

       

Based on the data from its first 3 wells (now verified by APA), Artumas reports a 265% increase in its P90's  and a 170% increase of P50's compared to APA's original 2005 resource report.  The Field's P10 estimates remain relatively unchanged as a result of the upgrading from the possible category as provided in the previous APA resource report to the proven category in the latest resource update.  Resource numbers reflect only the Mnazi Bay Gas Field.

 

Mnazi Bay Gas Field: APA Resource Estimate (Original Gas in Place*)

 

Mnazi Bay Gas Field OGIP		2005 Resources (Bcf)	2005 Resources (Mmboe)		2007 Resources (bcf)	2007 Resources (Mmboe)		Percentage   Increase
P90		152	25		404	67		+265%
P50		576	96		986	164		+170%
Pmean		830	138		1101	184		+133%
P10		1858	310		1947	325		+    5%

*recovery factor 70 - 80%

 

OGIP - Original Gas in Place

Bcf - billion cubic feet

Mmboe - million barrels oil equivalent

 

The recent data further supports Artumas's long-standing conservative estimate of 3+ trillion cubic feet (tcf) for the overall Concession.

 

In addition to the Mnazi Bay Gas Field, Artumas has identified eight other structural prospects and leads in the Mnazi Bay Concession, which are being evaluated through the current seismic and drilling programs.

 

A new exploration well, Msimbati-1X (MS-1X) was spudded on February 26th and reached total depth on March 20th.  MS-1X well has been drilled to verify the existence of hydrocarbon bearing multiple-stacked sands in its second structural prospect of interest.  The drill results for MS-1X will serve to delineate and further define the southeastern extension of the producing Miocene/Oligocene sands of the Mnazi Bay Gas Field.  The well has been logged and various zones will be drill stem tested immediately.

 

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This news release may contain forward-looking statements including expectations of future production, cash flow and earnings.  These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated.  These risks include, but are not limited to:  the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

 

 

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Oslo Bors has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.