BML Balmoral Intl

    RNS Number : 0588A
  Bramlin Limited
  29 July 2008
   



    Bramlin Limited
    ("Bramlin" or "the Company")
    (AIM: BML)

    Operational Update

    *     Additional gas sales contracts and letters of intent signed with industrial customers
    *     Committed volumes now exceed key economic Logbaba field development threshold
    *     Logbaba License extension obtained
    *     Logbaba field valuation increases 44% from $117m to $169m

    Bramlin Limited, the independent oil and gas company focussed on exploration and production in Cameroon announces that its wholly owned
subsidiary, Rodeo Development Limited ("RDL"), has entered into additional natural gas sales contracts and letters of intent with industrial
customers. Taken together with previously announced contracts, initial contracted volumes now exceed the investment economics threshold
required to develop the Logbaba gas field project.

    While individual contract details are confidential, RDL's target market comprises large industrial energy users in the Douala area.
These include the local subsidiaries of global corporations, such as Lafarge, Isenbeck, Nestle, Guinness, and AES. Currently Douala
industries are paying $30-35 per MMBtu for their energy; switching to natural gas under the terms of the gas sales contracts with RDL will
provide typical energy cost savings of approximately 50%, providing an incentive to local industry to make the conversion and benefiting the
Cameroonian economy as a whole. The exclusive gas sales agreements, which commit the customer to buy any natural gas they use from RDL, have
a term of 20 years, with provisions for price escalation. Negotiations with other prospective customers continue.

    Bramlin is well positioned geographically to become a key supplier of natural gas, and will continue to work closely with local
marketing and distribution companies including Tradex, a state owned marketing company, to secure RDL's position in the emerging natural gas
market.

    Bramlin has commissioned independent reservoir engineers, RPS Energy, to update its Competent Person's Report calculations to
incorporate new price assumptions for natural gas and gas liquids/condensates and the latest field development and operating cost estimates.
The new price assumptions reflect the actual gas sales contracts agreed to date and recent NGLs market experience. The new cost estimates
allow for higher rig rates and other key drilling and field development cost components, such as steel. The impact of these new price
assumptions and cost estimates on the RPS recoverable reserves volumes is minimal, but the calculations of net present value ("NPV") of
future field net cash flows have increased sharply compared with the values in Bramlin's AIM re-admission document in November 2007. Based
on a 10% discount rate (NPV10), the valuation has increased from $12m to $18m for proven reserves (1P), an increase of 50%, and from $117m
to $169m for proven plus probable reserves (2P), an increase of 44%. 

    RDL was notified recently by the Ministry of Industry and Mines (MINMIDT) of an extension of the third exploration period of the Logbaba
Permit. The exploration term is now effective until February 29, 2009.

    Jim Ford, CEO of Bramlin, said, "These are very important developments in our objective to turn Logbaba into a producing,
cash-generating field. The first crucial step of demonstrating the viability of the market for natural gas has been achieved and we are
confident that we will secure additional market share with more sales agreements over the coming weeks. In addition, we have been advancing
the other key steps - finalizing the Environmental & Social Impact Analysis, surface use and Rights of Way studies, contracting for drilling
the wells and planning the funding of the field development costs through to cash generation. We will provide regular progress updates to
shareholders as each of these milestones is achieved." 


    Contacts: 

 Bramlin Limited
 Jim Ford/Ernie Miller            Tel: +1 713 523 6336

 Strand Partners Limited 
 Angela Peace                Tel: +44 (0) 20 7409 3494
                  
 Tristone Capital Limited 
 Nick Morgan                Tel: + 44 (0) 20 7355 5800
                  
 Conduit PR 
 Jonathan Charles/Ed        Tel: +44 (0) 20 7429 6611
 Portman

    Notes to editors:

    *     Bramlin (AIM: BML), the AIM listed natural gas company, earlier this month announced that its wholly owned subsidiary Rodeo
Developments Limited, the operator of the Logbaba natural gas field near Douala, Cameroon, had signed three agreements to sell natural gas
from late 2009 to industrial customers in the Douala area.
    *     Four wells were drilled on the Logbaba licence in the 1950s by a previous licence holder. All demonstrated the presence of natural
gas and three of the wells were tested at rates of 12 - 62 MMcfd. At that time, there was no market for natural gas in Cameroon and the
wells were plugged and the licence relinquished.
    *     Bramlin's November 2007 AIM admission document associated with the acquisition of RDL contains a competent persons report on the
Logbaba gas field by independent reservoir engineers, RPS Energy. The AIM document is available to download on the Company's website,
www.bramlin.com.
    *     A copy of this announcement will be posted in downloadable form on the Company's website shortly.
    *     A copy of the RPS Update Letter will be posted in downloadable form on the Company's website shortly.


This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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