At an auction held this morning in Tomsk by the Ministry of National Resources, Imperial's wholly owned subsidiary OOO Nord Imperial, agreed to acquire Block 80 for the sum of 148,200,000 roubles (US$5.25m).
Block 80 is a highly prospective exploration block with existing oil discoveries. It is the first Block to be acquired by Imperial east of the River 0b and extends to over 3,844 square kilometers (equivalent in size to some 19 North Sea Blocks).
The Block contains a number of large potentially prolific structures. Some wells have already been drilled as well as certain seismic acquired. Particularly important is that in Soviet times two wells found clean oil and delivered it to the surface. Imperial is confident that when stimulated by the latest fraccing techniques commercial flow rates of a substantially high number will be obtained.
The new license for Block 80 will be acquired on a 25 year term, covering production as well as exploration with a work program that Imperial considers very practical and eminently achievable.
Peter Levine, Chairman and Chief Executive, commented:
This is a most significant acquisition for Imperial of a licensed Block of great potential and compares very favourably with the previous acquisitions at auction of the now very successful Blocks 69 and 77.
It materially broadens the range of Imperial's interests, complementing our producing acreage and provides further realistic major exploration upside for future growth.
We intend to commence work on this Block before the end of the year."
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