Gazprom Neft (GZPFY: OTC Link) | Gazprom Neft starts drilling in Eastern part of the Orenburg Field

Gazprom Neft starts drilling in Eastern part of the Orenburg Field

Dec 02, 2011

OTC Disclosure News Service

Moscow, Russian Federation –

Gazprom Neft is launching its production programme in the Eastern part of the Orenburg oil and gas condensate field, where the company took control in October 2011. The new owner, Gazprom Neft, is drilling its first operating oil wells within its own investment programme.

The first stage of the programme starts with a pilot project involving the drilling of six wells. The completion of drilling the first horizontal well is scheduled for March 2012. This will extend 2,400 metres, and by the end of the year construction will have started on two further horizontal operating wells.

The pilot project will allow Gazprom Neft to start work in new parts of the field that are not yet in production. The results will help clarify the geology of previously uninvestigated areas and determine the potential of new wells, making it possible to draw up plans and take the technical decisions necessary to move on to full production in the new areas. The overall 2012 production programme will be adjusted in line with the results of the pilot project.

“Working efficiently to develop future production plans for this new asset will allow Gazprom Neft to meet the challenge, which is to create a new production area for the company in Orenburg region and triple current output to around 5 million tonnes of oil equivalent annually within five years,” said Vadim Yakovlev Gazprom Neft First Deputy CEO.

REFERENCE

ABC1 + C2 reserves in the Eastern part of the Orenburg Field total 96 million tonnes of oil, 2 million tonnes of condensate, 53 billion cubic metres of natural gas and 10 billion cubic metres of dissolved gas.

In October Gazprom Neft purchased 61.8% of ZAO Gazprom Neft Orenburg, which holds the licence for the Eastern part of the Orenburg field. The company is working on acquiring the remaining shares in ZAO Gazprom Neft Orenburg (belonging to Gazprom Dobycha Orenburg), and parts of the field infrastructure (owned by Gazprom). There are 172 wells in operation on the field.

Gazprom Neft also acquired two other fields in the region in autumn 2011. The company’s first asset in Orenburg region was the Tsarichanskoye field, purchased in September 2011, and the second was Kapitonovskoye, a transaction completed in November.

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/GZPFY/news?id=38793

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