RIFT OIL PLC
PLACING AND ADMISSION TO AIM


Rift Oil plc ("Rift" or "the Company") has raised 2.3 million before expenses,
through a private placing of 24,080,000 new Ordinary Shares and a placing on
admission to the AIM Market ("AIM") of 22,200,000 new Ordinary Shares, both at
0.05 per share, giving the Company a market capitalisation at the placing price
of 17.3 million. The shares will begin trading on AIM today (19 April 2006).
Insinger de Beaufort is the Nominated Adviser and Broker to the Placing.

Rift was established in November 2004 to acquire a 65% interest in an oil and
gas exploration licence, the petroleum prospecting licence number 235 ("PPL 235
Licence"), in western Papua New Guinea. It acquired this interest in December
2004 through its subsidiary Foreland Oil Limited ("Foreland Oil"), in return for
a commitment to spend US$6 million (approximately 3.2 million) on the
exploration and development of PPL 235. The remaining 35% interest in the PPL
235 Licence is held by Trans-Orient Petroleum (PNG) Limited ("TOPPNG"), a wholly
owned subsidiary of Austral Pacific Energy Ltd ("Austral"), a Yukon
incorporated, oil exploration company operating in New Zealand whose shares are
publicly traded in the United States of America, Canada and New Zealand.

In January 2005, the Company and Austral entered into a joint venture operating
agreement to constitute the joint venture between the Company and Austral (the "
Joint Venture") in relation to the exploration activities to be undertaken
within PPL 235. These include a commitment to drill one exploration well, which
has already commenced as set out below.

Between December 2004 and March 2005, the Company raised a total of 4,505,000
at 0.25 per share from a range of private investors pursuant to an offer for
subscription to enable it to meet its initial obligations in relation to PPL
235, and as general working capital. On 10 April 2006 the Company raised an
additional aggregate sum of 1,204,000 by way of a private placing also at 0.05
per share.

The Joint Venture experienced difficulties in securing an appropriate rig in
order to begin the proposed drilling program on PPL 235. This was due to the
current high demand worldwide for the hire of drilling rigs. This led to the
decision by the Joint Venture, in late July 2005, to purchase the Coral Sea-1
Rig, a heli-transportable, free standing double for the purposes of the Joint
Venture.

PPL 235 covers a total area of approximately 2,910 sq km and lies within the
Foreland Basin, an area southwest of the Papua New Guinea highlands
approximately 500 km west from the capital, Port Moresby. The Company has chosen
the Douglas Prospect and the Puk Puk-1 (previously known as 'Kamu') Prospect
("the Prospects") as the initial targets on PPL 235.

Following extensive commissioning work, drilling on the Douglas Prospect, the
first prospect on PPL 235, commenced on 4 April 2006. The Company expects to
reach the planned total depth of around 2,000m after approximately 20 days of
drilling. This will be followed by a 4 day wireline logging program to determine
what further testwork may be required. Further analysis and interpretation of
the results will be necessary during early May before an announcement can be
made. The Company will then decide whether the results are sufficiently
encouraging to either:

(i) flow test the well;

(ii) drill further appraisal well(s);

(iii) shoot more seismic over the field; or

(iv) drill the Puk Puk-1 Prospect, also on PPL 235.

Rift has lodged an application, together with Austral, for a further PPL (APPL
261) covering an area of some 3,958 sq km immediately north of PPL 235. This
application is in the name of Foreland Oil (for and on behalf of Rift) as to
50%, and TOPPNG (for and on behalf of Austral) as to 50%.

DRIVER

http://www.upstreamonline.com/incoming/article162394.ece

Interesting information that mitzy

Thanks andy the gas may not be stranded if the pipeline passes nearby.

mitzy
Yes good find worth a copy and paste.


PNG eyeing major onshore gas link
By Russell Searancke

Papua New Guinea is planning a major gas pipeline in the countrys Western Province, site of a number of stranded gas fields, Australian PNG player Horizon Oil said today.

The pipeline would run between the P'nyang gas field and Daru on the south coast, Horizon Oil said at the Good Oil Conference in Perth.

Horizon owns 100% of the Stanley gas/condensate discovery in Block PRL 4, and 49.65% of the Elevala and Ketu gas/condensate discoveries in Block PRL 5.

Both of these permit areas would be on the pipeline route, as would the recent Puk Puk and Douglas fields.

However, sources said planning for the project was still in the very early stages.

The PNG government's attention is very much on the country's liquefied natural gas projects, but Sir Michael Somare's government is eager to commercialise the Western Province gas fields. In addition, Port Moresby has money that could be channelled into infrastructure projects like pipeline ownership, the sources said.

Horizon told delegates the pipeline could "provide large-scale gas commercialisation opportunities" like minerals processing, Compressed natural gas, LNG and methanol.

Horizon said its fields lie in the relatively flat and accessible foreland area.

The company has a gas sales agreement with PNG Sustainable Energy to supply power to the Ok Tedi mine from the Stanley field, beginning in mid-2009. Condensate would be stripped and exported via the Fly River.

Great thanks.

I don't see a "rush for the exit". This is a buying opportunity in my opinion. RIFT has long term prospects, but until we see some result from the extended testing at Puk Puk and the promised flow testing of the Douglas-1 discovery well, I think the share price will remain in it's present 5.75-6.75p channel.

I reckon the main reason for this is:

There were 98,393,348 ordinary shares issued on 5th June this year at a placing price of 5.25p. These were not offered to private investors, but to Institutions and "private individuals of high nett worth" [which ruled me out!!]. Subsequently the share price rose to over 10p but has slipped back to its current 6-7p level.

What seems to me to be happening, is that those who participated in the June placing are looking at a 25% profit each time the price rises above 6.5p. Frankly I don't blame them for taking a quick profit, especially those institutions who are facing a raft of redemptions from their savers & shareholders.

At present the main driver for RIFT is the news flow, which unfortunately is pretty sparse. The most recent formal announcement being made on the 7th August!

Good news from Puk Puk will lift the SP a few pence. But, at present, the resource remains stranded and it looks to be 2001/2012 before RIFT would be able commercialise their asset.

So I my view we might have:
1. Short term [i.e. till end Sept/Oct] 5.75p - 6.75p
2. Mid term [i.e. during late 2008 and 2009 - with more discoveries] 10p perhaps more
3. Long term: 2011/2012 [Gas production and sale in volume either to Alcan or to Flex LNG or to local pipeline] 50-100p!! Who knows?
Take your pick
PG

Been in over 2 years now P3 and the story remains the same theres gas maybe 1/2 trillion just waiting to be commercialised of course it could go wrong but by 2011 we should be worth between 50-100p..ore more.

Mind you I said 300p 2 years back so dont quote me.. !


Hopefully some news in the next 7 days.

10p to 12p next week.

Bit boring week.

Thats nearly 11 weeks of seismic and flow testing it wont be long now.Its exciting after all this time that finally we are reaching our destination.

Wont be long now end of the month..?

So much for my prediction of this flying through 12p.....still in hoping and waiting !.

Oil is rising again....probably gas futures should follow (not sure what they are doing at the moment !) ....oil and gas companies will continue to recover next week, RIFT has just got to rise now !.

I hope news next week but you never know with this one we will soon find out.

Fully invested here make or break for me.

rf/m
theres that word again Hope.
i Hope you are both right.
i have to confess i now have doubts on a short/ medium term perspective.
just my opinion based upon chart reading only.
many tell me charts dont work on small news driven stocks.
dyor.
could be wrong, i often am.
best regards and good luck to you both.
jkd

this share is on the way down

Lets hope so then...as results are due out in the next few days.

seems fibs and chart reading does work sometimes.
not always of course. might be worth considering for those with an open mind
regards
jkd
edit see my post 743 i am still neutral. you must decide for yourselves
hope this post might help someone.

A definate sell IMO

Probably won't be around soon if the market keeps deteriating.

I wouldn't buy this at 1p.

Why throw my money away?