Aurado will operate and manage the Liman project on behalf of Vela.
Aurado and Vela have entered into a Put and Call Option Agreement whereby upon the Company receiving the approval of the Toronto Stock Exchange for the completion of the acquisition of the Liman interest, Aurado will purchase the Liman interest from Vela in exchange for the following:
The Company recently reported the completion of drilling of the East Tegen-1 well on the Liman Contract Area in western Kazakhstan. The well reached TD (total depth) of 563 meters within the Kungarian salt, as forecast. Well logs have been run and Aurado is preparing to undertake production testing of the well. Results of the testing will be released as soon as possible. Potential recoverable reserves in the Albian Sand reservoir at East Tegen are independently estimated by Canadian Petroleum Engineering Inc. of Calgary, Canada, at 32.6 million barrels.
The resource potential for the entire Liman block has been independently estimated by Sproule International Limited of Calgary, Canada, to be 708 million barrels of recoverable reserves. The Company's geological staff is finalizing the coordinates of the next well to be drilled within the Liman block.
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