[EUROASIA] Aladdin Oil & Gas Company signs LOI to acquire four Russian oil licences
Published | 14-May-2008
- The licences are located around Aladdin Oil & Gas` existing licences in the mature Orenburg-area, which gives us a god opportunity to assess the geology and the reservoir conditions of the fields. The test reports are very promising. In addition, it’s our experience that the new 3D seismic studies could reveal a significant potential in the licences, Espen Glende comments, CEO of Aladdin Oil & Gas Company.
The licences were drilled in the 1970s and 1980s – and range from two to 50 square kilometres. The reservoir depths range from 1500 to 3500 meters. Presently, one of the licenses produce’s approximately 250 barrels per day, while the licenses’ historical cumulative production is around four million barrels. The remaining reserves, C1 and C2, are estimated to 25 million barrels.- The four new licenses will strengthen our position in the Orenburg region, diversify the risk further, and increase the present production. The reservoir horizons have already been identified as productive, and the reserve estimate can be increased further by the use of modern technology. A final agreement is expected to be entered into within three months, says Glende.
According to the letter of intent, Aladdin Oil & Gas Company will pay USD 17.5 million for 80 percent of the four licenses, while the present owners will keep a share of 20 percent. The letter of intent is subject to a successful due diligence and satisfying financing.
Source: Scandinavian Oil & Gas
RUSSIA: Aladdin to develop Uktha discovery
Published | 24-Nov-2007The company has made it their goal to drill 2-4 wells to be used for production within the end of 2008. Each well is expected to produce 2-3 mcf (million cubic feet) per day. If the discovery proves to be close to the size that is presently expected, the drilling of additional 2-4 wells will be required in 2009. This can bring the gas production to a total of 16-24 mcf per day in this field over the course of 2009.
AOGC is negotiating with several interesting parties regarding purchase of the gas. Each gas well is expected to yield a positive cash flow of $3,000-$5,000 per day after royalty tax given today's price levels of US $55-$60 per 1000m3, and we are expecting that the commercialization of the gas discovery will significantly contribute to the production already at the end of 2008, says Espen Glende, CEO of Aladdin Oil & Gas Company.
The gas demand in the Uktha-area is expected to increase significantly ahead, among others following the construction of the world's largest aluminum plant close to the company's license. The authorities are indicating that gas prices will increase as much as by two to three times before 2010 as a harmonization towards European levels, which again indicates a possible upside for the company, says Glende.
Via: ScandOiL
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