23rd Jun 2014 08:48
LONDON (Alliance News) - Zoltav Resources Inc Monday said the Russian Federal Agency for Subsoil Use has registered an additional 221 million barrels on Russian standard explored and preliminary estimated reserves for its Koltogor licences, increasing its total reserves by 83%.
The oil and gas exploration and development company said the basis for registration was the incorporation of the company's reservoir model, based on data from previous operators and exploration drilling, coupled with the successful recent testing of the Bazhenov shale formation at Well 103 on the Koltogor Exploration Licence 10, which resulted in the discovery of the new West Koltogor oil field.
Zoltav said its Bazhenov shale site added 47.9 million barrels at its Koltogor exploration and production licence and 33.9 million at its Koltogar exploration licence 10, helping to increase its total reserves by 83% to 487.2 million barrels across both sites.
However, the company did note that it reports its reserves and resources under the Petroleum Resources Management System, and so the changes are not directly comparable. It added that it doesn't expect to update these reserves until completion of the drilling of appraisal wells in its 2015/16 winter drilling season.
"This is a material uplift in the reserve base of the Koltogor Licences acquired by Zoltav last year and demonstrates that we have increasingly sizeable assets there. It is particularly exciting that we have identified a potentially material oil resource in the Bazhenov shale formation, and we are reviewing our options with regards to the development of this unconventional oil play," Executive Chairman Symon Drake-Brockman said in a statement.
Zoltav Resources shares were up 5.3% to 173.74 pence, putting it among the top AIM ALL-Share risers during early trading on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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