Arawak Gets Approval for Expansion of the Akzhar Area in Kazakhstan
Arawak Energy says that following a favorable decision to an application made by the Company's wholly owned subsidiary Altius Petroleum International B.V. to the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan, the contract area for the Company's largest field in Kazakhstan, Akzhar, has been expanded to 73 square kilometers. It now includes all areas where Altius has been able to demonstrate likely continuations of the structural system existing in the area of the original subsurface contract, as allowed for under the relevant laws of Kazakhstan.
The first step will be to shoot 3D seismic over 24 square kilometers of the Akzhar field to delineate more clearly the structures prior to a revised drilling program. The seismic shoot has already been planned, and will be conducted in the first half of 2006. According to the Company's NI 51-101 reserve report as at December 31st, 2004, total proved plus probable oil reserves attributable to Akzhar were 20.7 million barrels, based on the original contract area of 3.8 square kilometers.
Alastair McBain, Arawak's CEO, commented "We are all very excited about this decision, which gives us the opportunity to fully develop the Akzhar structures that we have identified, and which clearly and demonstrably extend outside the original contract territory. We now look forward to the results of the 3D seismic survey and to a larger and more ambitious development program."
Arawak's common shares are listed for trading on the TSX Venture Exchange under the symbol "ABG". The Company is engaged in the exploration, development and production of oil and natural gas in Kazakhstan, Russia and Azerbaijan. The Company's asset in the Azerbaijan Republic is its interest in the Exploration, Development and Production Sharing Agreement ("EDPSA") for the South West Gobustan fields. Commonwealth Gobustan Limited ("CGL") holds an 80%
interest in the EDPSA with the remaining 20% held by SOCAR Oil Affiliate. Arawak holds a 37.17% interest in CGL with the remaining 62.83% being held by two affiliates of China National Petroleum Corporation. Arawak's assets in Russia are held through ZAO PechoraNefteGas ("PNG") in which Arawak has a 50%
interest with the remaining interest being held by Valkyries Petroleum
Corporation. In Kazakhstan, Arawak's assets are held through its 100%
wholly-owned subsidiary Altius Energy Corporation.
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