Reservoir Exploration Technology Receives LOI for Work in the Caspian Sea

Reservoir Exploration Technology has signed a letter of intent for a contract in the Caspian Sea. Estimated contract value is $30-35 million.

The letter of intent has been signed with Agip KCO for the acquisition of 4C seismic data on their Kashagan field offshore Kazakhstan. The Kashagan field is located in the northern part of the Caspian Sea, close to the city Atyrau. It is the largest oil field discovered over the last thirty years worldwide. Its development represents one of the greatest current challenges of the petroleum industry given the extreme conditions:

  • Deep, high-pressure reservoir
  • High (16-20%) sulphur content with associated production of hydrogen sulphide
  • Shallow waters that range from 3 to 4 meters and freeze from November to March and sea-level fluctuation during the rest of the year
  • Wide temperature variations from -30C to +40C and
  • A very sensitive environment with a variety of internationally protected species of fauna and flora.

The field is operated by Agip KCO.

The survey will be acquired with RXT's third crew which was recently announced in the Q2 2006 Earnings Release. The crew will comprise three shallow draft vessels and acquisition is planned to commence as soon as ice conditions permit in Q2, 2007. It is RXT's intention to keep this crew permanently in the Caspian region.