Terra Resources Contracts Baker Hughes for Development of Russian Fields
Terra Resources has engaged Baker Hughes to manage the development of its oil and gas assets in Russia.
Terra Resources and Baker Hughes have entered into a Master Services and Sales Agreement on April 21, 2011 and subsequently approved a work program for the next 4 to 6 months. The objective of the initial work program is to analyze all available data, produce reservoir studies, production forecasts and field development optimization models, develop performance and dynamic modeling, re-entry design, (casing inspection, and additional data acquisition program including but not limited to logging, sampling, and PVT analysis). Additionally, Baker Hughes plans to perform geomechanical modeling for surface completion design and production optimization, workover design (analysis of potential stimulation, re-perforation and side tracking), final subsurface completion design, and surface gathering system design and optimization.
"We are excited about working with Baker Hughes, as we begin to develop our oil and gas assets," stated Dmitriy Salop, Terra Resources' President. "Baker Hughes has performed a comprehensive data review, which enables it to construct a geological model, and move forward rapidly," explains, Mr. Salop. Baker Hughes and Terra Resources expect to start the field execution phase by or before November 2011.