Imperial Energy Issues Update on Production, Reserves
Imperial Energy Corp. PLC released an update on its production, reserves, pipeline and the results of its latest seismic survey covering its North Torgai Block, Kostanai Region, Kazakhstan, which it holds through its 75% owned subsidiary, TOO Sevkazgra.
Production and Reserves – on track
--Production now over 2,500 bopd from just five wells. --Five fracs completed since start of current campaign, all successful. --11 rigs currently in operation. --Production targets on track from three fields
a) Over 6,000 bopd by end Summer b) 10,000 bopd by end 2007 c) 25,000 bopd by end 2008
--New target set for end 2009 from four of its fields
a) 35,000 bopd.
--Preliminary reserve report by DeGolyer and MacNaughton expected by end of this month.
Pipeline - major step forward towards delivery of Imperial's oil.
--All pipeline commissions granted by relevant Authorities. --On-site construction commenced and on track with significant off-site preparatory work having already taken place – several kilometers already laid. --Completion, commissioning and first transportation of oil scheduled for end Summer 2007.
Kazakhstan – potential opportunities
--Seismic identifies one potential prospect of interest. --Decision made to drill exploration well on this prospect. --Subject to permissions and approvals drilling projected to commence Q3 2007. --Non-prospective Eastern part of the Block relinquished.
--Preparatory work commenced by Imperial. --Targeting move to Main Market by end April 2007.
PRODUCTION AND RESERVES
Winter production is now running at over 2,500 bopd. This comprises production from a total of four wells in the Snezhnaya Field and one well which is gradually being brought on stream from the Maiskaya Field. The remaining three current Snezhnaya wells will further enhance production when they are brought back on stream after clean-up and routine maintenance.
All five fracs carried out on Imperial's wells since the start of the current campaign were successfully executed, ensuring enhanced flow rates after clean-up and meeting expectations.
As a result of this, and subsequent upon pipeline completion, the company remains on track for 6,000 bopd by the end of Summer, rising to 10,000 bopd by end 2007 and 25,000 by end 2008.
Imperial has set a new target of 35,000 bopd by end 2009 from four of its fields.
To achieve its extensive 2007 drilling program Imperial has contracted 11 rigs in the Tomsk region, all of which are currently operational and work is proceeding according to plan. These will be supplemented by Imperial's own rigs from 2007, the first of which will go to Kiev-Eganskoye Field, Block 80 to commence drilling in the latter part of this year.
A preliminary reserves report by DeGolyer and MacNaughton on Imperial's Tomsk assets is expected by end February 2007. A complete report including resources is expected to follow by end March 2007.
Imperial has obtained all necessary permissions from the relevant Ministries and Authorities for the construction of its two pipelines in the Tomsk Region, Western Siberia, Russia.
The first pipeline Snezhnaya-Zavyalovo is of 42km in length and extends from the Snezhnaya field to the Transneft main trunk line at Zavyalovo. This pipeline can serve Imperial's Blocks 74 and 77.
The second pipeline Maiskaya-Festivalnaya-Luginetskoye is of 161 km in length and extends from Imperial's Maiskaya field, Block 70, through Festivalnaya field, Block 69 to the Transneft tie-in at Luginetskoye. This pipeline can serve Imperial's Blocks 69, 70, 85 and 86.
On-site construction of both pipelines has commenced including tree clearing and trenching with several kilometers of pipeline already laid. Over 65 kms of pipe has already been pre-welded off-site and deliveries of pipe are all on schedule. Works are proceeding on track with completion, commissioning and first transportation of oil scheduled by end Summer 2007.
Three local specialist companies are contracted to build the pipelines and currently over 400 operatives are now working on site under the direction of Imperial's construction department.
It is a major step forward towards delivery of Imperial's planned expedited increase of production from end of the Summer 2007 onwards.
From the middle of February, Imperial's web site will have a special section showing pipeline construction progress with updated maps and photographs.
The results of the seismic on the North Torgai Block have now been interpreted. These results show several leads and one potential prospect of interest. It has been decided to explore this prospect which is situated in the Northern part of the Block, to the West of Lake Kumsherun. Plans are now being made for the drilling of this structure to commence late Autumn 2007 subject to relevant permissions and approvals being obtained.
The prime objectives for exploration of this prospect are Limestones of Lower Carboniferous and Upper Devonian which are proved reservoirs elsewhere in Kazakhstan.
After consideration of the seismic results the non-prospective Eastern part of the Block has been relinquished.
Imperial has commenced work in preparation for the move to the Main Market. This is currently targeted to take place by end April 2007.
Peter Levine, Chairman, commented:
"The results we are achieving clearly indicate our ability to deliver production from our substantial and increasing reserves and in addition our fracs continue to be extremely successful and are producing the expected results.
"We are keenly anticipating the results of our forthcoming DeGolyer and MacNaughton survey and on the basis of our internal calculations to date believe there will be material reserves upgrades.
"The expeditious granting of all necessary pipeline permissions is a significant achievement and yet another step forward for Imperial as we prepare to significantly scale-up production later this year.
"We are grateful to federal and local agencies and authorities for their co-operation.
"We are confident that these important pipelines will be a major asset for the Tomsk Region and its oil transportation infrastructure.
"The results of the seismic survey in Kazakhstan have led us to focus on one particular interesting prospect.
"Whilst we are taking a conservative, step by step approach, we are enthusiastically embarking on plans for an exploration well in this area to be drilled in Q3 2007."
Imperial Energy is an independent oil exploration and production company with operations in the Russian Federation. The Company is targeting 25,000bopd production by end of 2008 and currently has 321mmbbls of 2P Reserves. Imperial has an extensive program in 2007 including 30 production and appraisal wells, 10 exploration wells, construction of 200km of pipeline, oil processing facilities and the development of its own rig company.
There will be a complete reserves update in the spring of 2007 and the company is planning to move from AIM to the Main Market before the expiration of H1 2007
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