Imperial Energy Says Block 80 Reserves Report Exceeds Expectations
Imperial Energy has revealed the results of the DeGolyer and MacNaughton Report on one of its blocks, Block 80, Tomsk Region, Western Siberia. Block 80 – D & M Report substantially ahead of expectations
-DeGolyer and MacNaughton report determines Block 80 3P reserves at 528 mmbbls from the Kiev-Eganskoye field alone and a further 108 mmbbls of resources (82 mmbbls of contingent and 26 mmbbls of prospective) from 5 other targets so far considered by them in the Block, all calculated on an SPE basis
-This is in addition to the previously published independent report of TRACS in July 2005 which gave 2P reserves for Imperial of 228mmbbls from just 5 fields in such of Imperial's other blocks which were at that time considered by them
-Subject to successful appraisal work, Kiev-Eganskoye Field targeted to commence test production during 2008 with consistent production 2009
Production continues with winter production soon to commence from two other fields
-Production continues from Snezhnaya field, Block 77, Tomsk Region with successful new fraccing -Both Aikagalskaya 256 and Aikagalskaya 257, Block 69, Tomsk Region production/appraisal wells prove successful, oil from Aikagalskaya 257 flowed on an un-stimulated basis
-Early Winter test production from the Aikagalskaya field planned for February 2007 with consistent production late Summer 2007 upon pipeline completion
-Early Winter test production from the Maiskaya field, Block 70, Tomsk Region, planned for February 2007 with consistent production late Summer 2007 upon pipeline completion
-On track to achieve production of 25,000 bopd by end 2008 from first three fields with material production targeted for late Summer 2007 and increasing
-Subject to successful testing this Winter, new Chagvinskaya and Glukhovskaya fields, respectively Blocks 70 and 86, Tomsk Region targeted to have some initial test production during 2008 and consistent production in 2009 being in addition to Kiev-Eganskoye Field in Block 80
-Field facilities on first three fields to be completed by Summer 2007 at total cost of US$43 million
Exploration – new successes and major 2007 program
-New exploration well Chagvinskaya 4 successfully identifies oil in numerous sections following on from the like success in Glukhovskaya 5 earlier in 2006
-New exploration well, Golovnaya 353, Block 74, Tomsk, now spudded and at 2,500 meters – with results expected at the beginning of 2007
-Ten new exploration targets to be drilled in 2007
Pipeline – on track
-Pipeline work to service six blocks of Imperial in Tomsk Region, progressing on plan and on target with first oil expected through pipeline by end Summer 2007
-Pipeline costs currently budgeted at US$60 million and in line with expectations
New drilling company – efficiency, economies and effectiveness
-Imperial has formed its own drilling company, Rus Imperial Group ("RIG"). – three rigs using latest technology already reserved with delivery anticipated late 2007 onwards
-RIG will service Imperial's needs as well as appropriate third parties including the Tomsk Local Administration
-Imperial planning to move to Main Market of the London Stock Exchange H1 2007
Peter Levine, Chairman, commented:
"We expect 2007 to provide a step change for Imperial.
Imperial has already moved to another level in terms of organisation and professional expertise. We now have some 200 employees in Russia, predominantly in Tomsk reflecting the extent of our current and future operations and the scale of activity planned for the next year.
The results of the D & M report on Block 80, demonstrates the significant potential for this licensed area and underlines the extent of Imperial's asset base in the Tomsk Region, taking into account that Block 80 comprises only a small part of Imperial's interests in the area.
We are making good progress on all fronts with management and employees focused on delivery, cost management and performance. RIG, our new drilling company, to be equipped with latest technology equipment, helicopter transportable, will ensure we are able to contain expenditure on our drilling program going forward, mobilise quicker, drill more efficiently, productively and throughout the year as well as servicing the needs of appropriate third parties, including the Tomsk Local Administration.
The scale of our operations and the success that we are achieving is a reflection of the effectiveness of our efforts and a sign-post to achieving the ambitious targets which Imperial has set itself which we look forward with confidence to fulfilling.
We maintain our objectives of deliverability, sustainability and growth.
The planned movement to the Main Market of the London Stock Exchange demonstrates the continued transition of this Company and is a declaration of our serious intent for Imperial's future."
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