Baltic Oil Deepens Privolny

Baltic Oil Terminals, the operator of exploration licenses in the Kurgan Region of Russia through its 50% subsidiary Zauralneftegaz, provides an update on its Privolny and Mokrousovsky Licenses.

In light of the preliminary findings in the first 2,000 meters of the Privolny-1 exploration well, Baltic decided to drill a further 400 meters to reach a total depth to date of 2,400 meters. Drilling has now been temporarily suspended, pending further analysis of the data.

The original objective of the Privolny-1 well was to substantiate the interpretation of seismic data obtained in 2006, together with other geophysical and geochemical work conducted over the last two years. This would materially advance Baltic’s understanding of the geology of the licence areas.

This objective has been achieved, with sufficient data now gathered to enable a tie in to the adjoining Mokrousovsky license block. The data gathered will also allow Baltic to determine with a greater degree of confidence the exact location of its second well, Mokrousovsky-1. This is expected to spud in September 2007.

Furthermore, core samples were obtained in the Middle Carboniferous-Moscovian and Upper and Middle Devonian sections. These include lean source rocks lying within the oil maturation window, which were not certain to be encountered whilst drilling the first well, but which are encouraging in terms of the overall prospectivity of the blocks.

The cores and electric logs obtained from Privolny-1 will now be analysed and the results will determine whether the well is to be further deepened to prospective geological horizons.