Petrolinvest Discovers Oil in Kazakhstan

Petrolinvest says testing carried out in the Zhubantam license indicate the presence of oil. Similar tests are underway in the two remaining licensed areas – OTG and Dautskoye. Pawel Gricuk, Petrolinvest's CEO said work is underway to begin appraisal drilling.

Presence of crude oil in the Zhubantam G-4D well has been confirmed by geophysical research which is substantially more accurate than previous tests. The Zhubantam G-4D well has been drilled to a depth of 751 meters. Following interpretation of the geophysical measurements, a preliminary program has been developed for the well's initial production.

According to the tests' findings presented to the Kazakh Geological Committee, the forecast geological resources in the Zhubantam licensed territory amount to 1.2 billion oil barrels, of which 250 million barrels are extractable.

"Test findings confirming presence of oil resources in Zhubantam are very welcome news", says Stefan Geron, PhD, Petrolinvest's Head of Geology in Kazakhstan. "We now intend to concentrate our efforts on bringing oil to the surface by the end of this year and will employ all the available technology in the process. Once this objective has been achieved, we will commence trial exploitation of the oilfield", adds Geron.

The final preparation for trial exploitation of the well is scheduled to begin in the coming days. To that end, pipes will be perforated to trigger oil inflow. By the end of 2007, two more shallow wells, four medium-sized wells of the maximum depth of 2,000 meters and one very deep well of 5,000 meters will be drilled. Trial exploitation of the Zhubantam oilfield will also commence.

It may be stated with a high degree of probability that oil will also be found in the Dautskoye licensed area. The 2D seismic research has helped to identify two potential deposits in Dautskoye. More 2D and 3D seismic tests will be held shortly in the OTG licensed area.

Work on the three licensed territories in Kazakhstan (Zhubantam, OTG and Dautskoye) proceeds as scheduled in line with Petrolinvest's strategy.