12th Mar 2015 09:58
LONDON (Alliance News) - Zoltav Resources Inc Thursday said an additional 546 million barrels of oil has been added to the company's Koltogor exploration and production license in Russia, taking the total reserve to more than 1 billion barrels, but warned this could fall as it has only been registered under the Russian classification system.
The exploration and production company said the Russian Federal Agency for Subsoil Use has registered the additional 546 million barrels of Russian standard C1 and C2 reserves to the Koltogor license after the company completed further seismic work.
"The interpretation of 3D seismic data from last year's programme has enabled the company to re-map the reservoir distribution of the Koltogor oil field which we now understand to be a significantly bigger asset," said Executive Chairman Alastair Ferguson.
Following the addition, the total C1 plus C2 reserves for the Koltogor exploration and production license and the neighbouring Kolotogor exploration license 10, now exceeds 1 billion barrels.
"With over a billion barrels of Russian standard reserves, the Koltogor licences contain the largest undeveloped oil discovery in the prolific Western Siberian oil province of Khantiy-Mansisk," added Ferguson.
The company noted that the Russian Federation's classification of reserves and resources is not directly comparable to the Petroleum Resources Management System.
"C1 and C2 reserves under the Russian Federation classification scheme should not therefore be directly compared with proved and probable reserves under Petroleum Resources Management System which may be significantly lower," said the company.
Zoltav said it will register the new reserves under the Petroleum Resources Management System in the third quarter, which will give a more accurate estimate for the reserve increases at the licenses.
Zoltav shares were up 11.1% to 50.00 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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