SAGA Secures Rig for Russian Exploration Program

SAGA Oil has secured a new mobile drilling Rig for its exploration program in Russia. The Rig allows for more extensive drilling operations to be carried out faster and at a lower cost than previously communicated. In addition the company’s drilling program progresses according to plan.


SAGA Oil has signed a contract for a new, truck mounted, mobile drilling Rig which is brand new and to be delivered directly from the Rig producer. SAGA will by this be able to increase the speed of development having secured such a mobile drilling Rig that can mobilize and demobilise about 3 times faster than the standard Russian heavy rigs. The Rig is to be commissioned and tested on Pad 2 within two months, and thereafter commences appraisal drilling on the licenses. This new mobile drilling Rig will be SAGA Oil’s third drilling Rig in addition to the electric Rig which currently works on Pad 3, and the upgraded heavy Rig which is under installation on the Petrovsky field.


The upgraded heavy drilling rig has been moved from Pad 1 and is under installation on the first drilling Pad on the Petrovsky field. It is anticipated that it will take a few weeks more before the Rig is finally ready to start drilling the first exploration well. PRODUCTION TESTING OF THE LAST WELL ON PAD 1 As the upgraded heavy Rig is removed, the well 104 has thereby been freed, and the completion and production testing of the well is in progress. The initial perforation is expected to take place in about 1 week’s time after well bore cleaning and logging has been completed.


The well #120 has reached a depth of 1470 meters and is changing to high quality polymer drilling fluid in order to start formation coring through the Tournaisian production zone and two more production zones before reaching TD.

Malvin Hoeydal, President and CEO of SAGA Oil ASA comments:

"Securing the brand new truck mounted mobile drilling rig is a great change in drilling possibilities for SAGA, as it will allow for much faster verification of resources since it is easily movable to do single wells. It can also drill to a total depth of 3000 meters for exploring the lower zones. The new mobile drilling Rig is also expected to contribute to a reduction of drilling cost. In addition it is expected to increase the speed of development of the licenses. The quality of the drilling work should also increase further due to new and modern: fluid circulation & handling systems, drilling strings & tools, machinery and all other support systems."