Saga Oil Discovers New Oil Zones in East Shaltinsky Field

Saga Oil ASA says that well #102 has been successfully drilled, cored and logged to the desired total depth of 2064 meters. The cost of drilling was within budget. All logging data has been correlated and done according to western standards and will be part of the basis for the next SPE adjustment of resources.

Three new oil bearing zones in the East Shaltinsky field in Russia have been discovered as a result of successful drilling, coring and logging. Based on preliminary results, one of the three new zones (Middle Devon Zhivetsky) is currently deemed producible. This new producible zone is situated close to the "Pashiyan" zone and has good oil quality. This discovery increases the possibility of well completion using dual production from both the lower zones (Pashiyan and the new zone). The new zone is to be tested during completion of well #102 and/or well #103 by November/December.

Orenburg region has other oil fields with pay zones that are similar to SAGA's newly discovered Middle Devon Zhivetsky which has yielded from 80 to 2000 BOPD by own production pressure.

In light of the encouraging results, SAGA continuously evaluates further funding solutions to increase progress on the East Shaltinsky and Petrovsky oil fields.

Whether the two other new zones are producible will depend on further results from core analysis, 3D and future well testing.