RussNeft Gets Green Light to Develop Russian Field

RussNeft has obtained a license to explore for and produce hydrocarbons within the limits of the Lusianinskoye oil field in Russia. The license is valid until February 2030.

Discovered in 2008, the Lusianinskoye oil field is situated in Engels District 30 km to the south-east of Saratov. The pioneer of the oil field was exploration well No 4. Testing the well gave oil-free flowing with an average daily flow rate of about 95 cbm.

During the two years, geological services of the Company have studied and itemized the structure of the Lusianinskoye oil field in order to prepare for operation. In 2008, taking into consideration the re-interpretation of the data of 3D seismic works, an operative assessment of hydrocarbons was performed. Location of the next exploration well was recommended. In 2009, one more exploration well was drilled and an additional study of the resource base of the new well was undertaken. As a result, (within the limits of the license area) three more hydrocarbon deposits were discovered: gas, gas condensate and oil-and-gas. At present the recoverable reserves of Lusianinskoye oilfield in C1+C2 amount to 273 thousand tons.

RussNeft plans to commence commercial production at the Lusianinskoye oil field within two years.