PetroNeft Picks Up 100% Interest in Russian Ledovy License
PetroNeft Resources, owner and operator of Licence 61, Tomsk Oblast, Russian Federation, has won the State Auction for a 100% interest in the Ledovy License No. 67 also in the Tomsk Region.
- Ledovy License 67 is located in the main oil bearing region of the Tomsk Oblast west of the Ob River
- The large 2,447 km2 License is surrounded by proven and producing oil and gas fields and is located close to existing road, power and pipeline infrastructure
- Russian registered C3 (possible) recoverable resources are 55 million barrels in 3 prospects
- There is believed to be significant upside within existing discoveries - two structures have previously tested oil but require further appraisal
- Discoveries have potential to form the basis of a future development project
- Modest initial 3 year work commitment involves reprocessing old well and seismic data, acquisition of 750 km of new seismic data and drilling of one well
The Ledovy License area is located west of the Ob River in the main oil bearing part of the Tomsk Oblast. The License has an area of 2,447 km2 and is surrounded by proven and producing oil and gas fields. Two producing oil fields, Grushevoye and Lomovoye, containing about 90 million barrels of C1+C2 reserves are located within the License area, but are excluded from the Licence. However, two existing drilled structures, Ledovoye and Sklonavaya, included in the License area have previously tested oil and may form the basis of a future development project.
The Vasyugan-Raskino oil pipeline and electric power lines run through the middle of the License area. There is a paved road and oil pipeline that runs to Strezhevoy through the northwestern tip of the License area. Both pipelines have the potential to accommodate production from any incremental discoveries in the License.
Exploration on the Ledovy License began in the 1950s with wells being drilled on large prospects identified by vintage seismic data. Modern 2D seismic data was subsequently acquired from 1980 to 2001. Russian registered C3 (possible) resources are currently 55 million barrels.
A total of 8 wells have been drilled on the License. PetroNeft has reviewed the drilled and currently mapped undrilled structures and believes that there is significant upside within existing discoveries, potentially by-passed pay and new exploration prospects within the block. Two of the previously drilled structures, Ledovoye and Sklonavaya, have tested oil but have not to date been assigned reserves. PetroNeft believes that these discoveries have potential to form the basis of a future development project on the License, but also intends to pursue an active exploration program.
License and Work Program
The License is an exploration license for 5 years but can be extended based on an agreed work program. Discovered fields will convert into production licenses once the discovery is registered. The minimum work commitments are to re-analyse the data from old wells and seismic surveys, acquire 750 km of new 2D seismic and drill one well within 3 years. The bid consideration was 42 million Roubles (US $1.39 million).
The planned 2010 work program will focus on the overall reevaluation of all the previous data on the License area with modern technology. Well and seismic data will be reprocessed and the results of this evaluation used to acquire 750 km of new seismic data, which will help to determine the exploration priorities for the License area. It is also possible that some of the old wells could become workover candidates. This analysis will also be part of the 2010 work program.
Arawak Area of Mutual Interest
The License is within Western Siberia and thus falls within the 2008 Area of Mutual Interest agreement between PetroNeft and Arawak Energy Limited (Arawak). Under this agreement Arawak is entitled to participate in up to a 50 percent interest in the License and will confirm its intentions by the end of January 2010. PetroNeft will remain as operator of the License.
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