Niche Group likely to take up licences in Turkey

NICHE GROUP, the exploration company backed by Irish businessman John McKeon, is likely to snap up further licences in Turkey after announcing yesterday that it plans to raise €12.75 million.

The company announced that exploratory drilling in a block in Gulhanim in Turkey has encountered two potential natural gas reservoirs.

The development is likely to see Niche and its partners take more exploration licences in the area.

While exploration work indicated that one of the reservoirs was there, the second is a new discovery.

Director Donal Boylan said the discovery of the second reservoir was “exciting” and further enhanced the exploration block’s prospects.

Niche has a holding in the licence through an investment in convertible loan stock in a company called Oman, which is taking a 50 per cent interest in the block, which is known as 4077.

Niche, which is listed on London’s Alternative Investment Market (AIM), intends issuing new shares to raise £11 million (€12.75 million).

Of that £4 million has been earmarked for Oman, while Niche will keep the balance for working capital and to pay for further investments.

“In particular Niche is currently evaluating further opportunities with Oman to farm into additional licenses currently held by the operator of Block 4077,” the company said in a statement yesterday.

The company has carried out further seismic tests, which provide a picture of underground rock structures, to identify possible oil and gas reserves in the area.

The £4 million will be paid to Oman in the form of a second convertible loan that will convert to stock amounting to an 8 per cent stake in the company.

Mr McKeon is a consultant to Niche and bought a 26.7 per cent stake in the company last year when it was an effective shell. He founded Circle Oil and Enex.