The Production License grants Promgeotek LLC the right to produce hydrocarbon resources from any deposit down to the crystalline bedrock at the East Shaltinsky oil field for 20 years. Included in the 20 years of production, the License also includes an additional 5 years of any type of hydrocarbon exploration activities.
Promgeotek's acquisition of the Production License is also the last mile stone for Saga Oil ASA in order to acquire the remaining 50 % of shares in Promgeotek LLC and become 100 % owner. The process of acquiring the last 50 % of shares will be fully completed within the next 2 weeks according to the initial purchase contract.
CEO of Saga Oil, Malvin H°ydal says in a comment: "It has taken longer than expected to acquire this License due to large amount of official organizations involved in the complicated Russian licensing process. We are however now very pleased with the fact that yet another milestone is in place, and that the development of the entire Rodnikovsky licensed area can commence according to plan."
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