28th Aug 2009 07:00
28 August 2009
VOLGA GAS PLC
("Volga Gas" or the "Company")
Drilling commences on sub-salt Grafovskaya #1 well
Volga Gas Plc is pleased to announce that drilling has commenced on Grafovskaya #1, the Company's first deep sub-salt exploration well in its Karpenskiy Licence Area, which is targeting two potential gas/condensate bearing prospects in the Yuzhny Ershovskoye structure.
The Grafovskaya #1 well is to be drilled to a planned total depth of 5,200 metres.
The budgeted time for the operations, excluding any eventual flow test procedures, is 250 days.
The well is being drilled with a brand new western drilling rig, LEWCO 450ton operated by Eurasia Drilling, equipped with top drive and high pressure gas rated blow out preventor ("BOP").
The drilling will be supported by leading international service companies: Baker Hughes, Schlumberger and certain leading Russian contractors.
The well will intersect two separate potential gas/condensate targets at different depths on which Russian C3 prospective resources have been filed as follows:
|
Prospect |
Depth |
Russian category C3 resources |
||
|
(metres) |
Gas (BCM) |
Condensate (mm tons) |
Total (mmboe) |
|
|
Yuzhny-Zapadnoye |
3,500 - 4,000 |
13.8 |
1.9 |
96.6 |
|
Grafovskaya |
4,000 - 5,200 |
42.3 |
6.1 |
298.4 |
Mikhail Ivanov, Chief Executive of Volga Gas commented:
"We are excited to have started drilling our first sub-salt exploration well to test the prospect that was among the key motivations in the establishment of Volga Gas.
"Success with this well will be transformational for the business and, added to our existing production, appraisal and exploration portfolio, will firmly establish Volga Gas as a significant operator in the region.
"The management is highly appreciative of the support shown by shareholders in the recent Placing of new shares that enabled us to bring forward the drilling of the Grafovskaya #1 well. We look forward to providing updates on the progress of this well as and when appropriate."
For additional information please contact:
|
Volga Gas plc |
|
|
Mikhail Ivanov, Chief Executive Officer |
Tel: +7 (495) 721 1233 |
|
Tony Alves, Chief Financial Officer |
Tel: +44 (0) 20 8622 4451 |
|
Oriel Securities |
|
|
Richard Crawley |
Tel: +44 (0) 20 7710 7600 |
|
Daniel Conti |
|
|
Financial Dynamics |
|
|
Billy Clegg |
Tel: +44 (0) 20 7831 3113 |
|
Ed Westropp |
|
|
Alex Beagley |
|
Editors' notes:
Volga Gas is an independent oil and gas exploration and production company operating in the Volga region of European Russia. The company has 100% interests in its four licence areas.
The information contained in this announcement has been reviewed and verified by Mr. Mikhail Ivanov, Director and Chief Executive Officer of Volga Gas plc, for the purposes of the Guidance Note for Mining, Oil and Gas companies issued by the London Stock Exchange in March 2006. Mr. Mikhail Ivanov holds a M.S. Degree in Geophysics from Novosibirsk State University. He has also MBA degree from Kellogg School of Management (Northwestern University). He is a member of the Society of Petroleum Engineers.
-Ends -
Related Shares:
VGAS.L