These two licenses, referred to the Liman-2 and Atyrau blocks, are 4,110 sq.km. and 10,518 sq.km. in area respectively, and are centrally located in western Kazakhstan's prolific Pre-Caspian basin. This basin contains such giant fields as the Astrakan gas condensate field; Europe's largest, the Tengiz oil field with some 8 billion barrels of oil reserves, and the recently discovered Kashagan oil field, with over 10 billion barrels of reserves, which is located 60 km south of the Atyrau block.
Early geophysical and geological research, which included the drilling of some 60 test wells, have identified 43 prospects on these two blocks. The Kazakh government has assigned possible oil reserves of over 325 million barrels to twelve of these prospects.
The Company believes that modern 2D seismic will better define these prospects, as well as identify additional deeper, more sizeable targets, which previous seismic technology was not capable of resolving due to interference from salt structures. The Company anticipates shooting a focused seismic program by the end of the third quarter of this year, followed directly with exploration drilling.
"We are excited by the hydrocarbon potential afforded by such vast licenses, located in the heart of the Pre-Caspian basin," stated Mr. Glenn Van Doorne, the Company's Executive Vice President. "Multiple large targets, each with multiple horizons, in a basin with readily available oil and gas transportation and excellent oilfield services, provide an ideal exploration venue."
"These blocks offset our existing holdings, which we currently anticipate the start of production by the second quarter of this year," stated Matthew Heysel, the Company's Chairman and CEO. "As a result, these newly acquired licenses will complement our existing operation and greatly accelerate our growth in the region."
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