Statesman Resources Ltd.
TSX VENTURE : SRR

Statesman Resources Ltd.

October 15, 2012 06:00 ET

Statesman Resources Ltd.: Block 14 Sudan Update

HIGHLIGHTS:

-- Significant hydrocarbon indications from extensive micro-biological sampling of over 1,000 boreholes in Block 14

-- Hydrocarbon shows reported from well drilled in adjacent Block 12A

-- Competent Persons Report initiated to estimate resource potential

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2012) - Statesman Resources Ltd. (TSX VENTURE:SRR) (the "Company" or "Statesman") is pleased to advise it is in receipt of all historical data acquired in Block 14. The data includes a Microbiological Prospecting for Oil and Gas ("MPOG") Report which concluded that there are distinct areas within Block 14 that have significant hydrocarbon indications.

The historical data on Block 14 has been obtained without cost from the Ministry of Petroleum in Sudan. The previous Block 14 Operators spent in excess of $15 million on data acquisition, including ground and airborne gravity surveys, aero-magnetics, 2D seismic data, Microbiological Prospecting for Oil and Gas ("MPOG") studies, as well as field and laboratory studies.

Statesman Chief Executive Officer, Mr. Dougal Ferguson, stated, "Technical work has now begun in Block 14 and we will utilize all existing data and information to formulate our plans going forward. The results of the 2008 MPOG report are extremely encouraging and are the first indications that a petroleum system could be present in Block 14."

MicroPro MPOG Report shows Indications of Hydrocarbons

The MPOG Report by MircoPro GmbH was undertaken in Block 14 in 2008. This report studied borehole soil samples at 1,089 locations in Block 14 and stated "high indication values at several stations prove the principle occurrence and potential activity of hydrocarbon oxidizing bacteria." The highest readings in the block occur immediately above the largest lead identified within the block.

The identification of these anomalies is the first real indication that an effective petroleum system could be present in Block 14 and reduces Block 14's critical risk of the presence and maturity of source rocks.

To view Figure 1, please click on the following link: http://media3.marketwire.com/docs/srr15-F1.pdf.

What is micro-biological sampling?

MPOG exploration technology is based on the detection of significant populations of specific hydrocarbon degrading micro-organisms in shallow soil samples (up to 4 metres below the surface). Hydrocarbon micro-leakage from oil and gas traps migrate to the surface and promotes the development of hydrocarbon oxidizing bacteria. The detection of microbial anomalies indicates a corresponding hydrocarbon signature deeper underground.

To view Figure 2, please click on the following link: http://media3.marketwire.com/docs/srr15-F2.pdf.

Scouting Information in Neighbouring Block 12A

An exploration well drilled in Block 12A, which borders the Company's block, has encountered hydrocarbon shows. The well, situated approximately 150km south of Block 14, is the first exploration well drilled in the Mourdi Sub-basin. It is understood the Block 12A Joint Venture will spud a second well whilst the rig is still in the region.

The presence of hydrocarbon indications in the Mourdi Sub-basin significantly upgrades the region's potential. The Mourdi Sub-basin extends from Block 12A directly into the south western portion of Block 14.

Also in the region, Melrose and it partners in the El Mesaha Block in Egypt, which is immediately to the north of Block 14, are planning to drill an exploration well before the end of the year.

Any further positive information from these drilling campaigns could have significant impact on the future prospectivity of Block 14.

To view Figure 3, please click on the following link: http://media3.marketwire.com/docs/srr15-F3.pdf.

Competent Persons Report

Statesman also announces that it has appointed Senergy to undertake an independent Competent Persons Report on Block 14 Sudan which is expected to be completed in late October 2012. The Report will cover the regional geology and petroleum systems of the greater area, review analogue basins and their discovered field sizes, and deliver an estimate of the undiscovered potential resource size within the block. Senergy is a leading global provider of diversified energy consulting services, with head office in the United Kingdom.

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