The higher funding, which is being provided by Bank TuranAlem in Kazakhstan, will be used to expand CIOC's seismic operations and to begin its 2007 development program on the North-West Zhetybai oil field in Western Kazakhstan. The $22.9 million in credit lines is comprised of $17.9 million for CIOC's Dank subsidiary with the remaining $5 million for its Kor-Tazh subsidiary.
"These increased lines of credit for our operations represent a very positive development for CIOC and our ability to meet our customers' growing seismic requirements," said James. E. Knight, President and CEO of CIOC. "At Dank, we will use our higher credit lines to significantly expand our seismic operations through new equipment purchases, mainly from Input/Output. We also are evaluating the addition of another seismic crew that could serve customers in Kazakhstan as well as other countries.
"Our higher line of credit for Kor-Tazh will enable us to begin our 2007 work program for the North-West Zhetybai oil field. Our plans for 2007 include conducting a 3-D seismic survey on the field, re-entering three wells previously drilled, and initiating a program to drill two new wells to further define and delineate the field using current technology and drilling techniques," Knight added.
Headquartered in Houston, CIOC acquired its current operations in August 2006 with the merger of several Kazakhstan companies, principally Dank and Kor-Tazh. Dank and PGD Services (a subsidiary of Dank) provide oil field services including 2-D and 3-D seismic acquisitions, data processing and interpretation, reservoir modeling and topography to the petroleum industry in Kazakhstan and elsewhere in Central Asia, while Kor-Tazh operates an oil field in Western Kazakhstan.
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