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DJ Karoo Energy Plc Exploration Update

 
TIDMKEP 
 
15 December 2016 
 
                               KAROO ENERGY PLC 
 
                       ("Karoo Energy" or the "Company") 
 
                              Exploration Update 
 
Karoo Energy is pleased to announce that exploration work in the Gemsbok Basin 
covered by the Company's Prospecting Licences EL001/2012 and PL171/2015 has 
produced results which confirm the geological model for the Company's 
exploration programme. This model, based on multiple research projects, 
including deep boreholes and seismic surveys, undertaken by the Department of 
Geological Survey of Botswana and other published academic works, predicts a 
deep sedimentary basin, the Gemsbok Basin, infilled by Karoo Supergroup 
sedimentary rocks underlain by Nama Group sedimentary rocks. Both groups of 
rock, Karoo and Nama, are known to contain organic shales which form the target 
for this exploration project. The most important references are indicated at 
the end of this announcement. 
 
These research projects have been expanded by internal research on rock samples 
from 10 boreholes over the region (Botswana and Namibia) by Tamboran Botswana, 
a wholly owned subsidiary of Karoo Energy. This work has included mineralogy, 
Kerogen quality, type, maturity and Vitrinite Reflectance and have confirmed 
that the level of maturity of the sedimentary rocks in the Gemsbok Basin are in 
the "Gas Window" and as a consequence would be expected to contain resources of 
methane gas, i.e. shale gas. 
 
In addition, intersections at sites EL001-3 and PL171-01, in EL001-2012 and 
PL171-2015 respectively, have both confirmed potential source rocks i.e. 
multiple deep intersections of carbonaceous mudstone and mudstone, for shale 
gas. 
 
The intersections correlate well with previous exploration works in the area 
mentioned above, including a 5000m deep oil and gas exploration well, MP1, 
drilled by the Department of Geological Survey, and further exploration work 
including the expansion of the existing historical gravity survey data and 
additional wells are scheduled for 2017. 
 
  * Project GC47 "Interpretation of the results of the stratigraphic well 
    Masetlheng Pan #1 (MP1) in the Nosop-Ncojane Basin (Gemsbok) Basin of 
    South-West Botswana". 
 
  * Project GC122 "Oil and Gas Stratigraphic Drilling Project for Department of 
    Geological Survey Botswana by Exploration Consultants Limited 1998. 
 
  * Project GC154 "Results of the Central Kalahari Karoo Basin Coalbed Methane 
    Feasibility Study for Department of Geological Survey Botswana by Advanced 
    Resources International 2004. 
 
  * Stratigraphic and Sedimentary Context of the Carbonaceous Facies in the 
    Karoo Super Group in South West Botswana, 2009. 
 
Alan Golding, BSc. Hons Geology, Pr. Sci. Nat, F.G.S, FGSSA, has reviewed and 
approved the technical information contained in this announcement. 
 
The Directors of Karoo Energy accept responsibility for the content of this 
announcement. 
 
ENQUIRIES: 
 
Karoo Energy PLC 
Noel Lyons 
020 3130 0674 
 
Corporate Adviser 
Peterhouse Corporate Finance Limited 
Guy Miller / Mark Anwyl 
020 7469 0930 
 
 
 
END 
 

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December 15, 2016 10:38 ET (15:38 GMT)