Timano-Pechora becomes West Siberian's largest production region
West Siberian Resources Ltd today announced the production plan and capital
program for 2008. Total oil production is projected to increase to 15 million
barrels, from this years' production plan of 11 million barrels.
2008 capital expenditures are planned at USD 190 million, which is unchanged
from 2007. These plans include drilling of 36 new production, injection and
exploration wells.
The successful development of the North- and Lek Kharyaga oil fields will
continue to lead production growth in the Timano Pechora which is West
Siberian's largest production region.
Production growth will be led by the continued field development in the Timano
Pechora region, where the majority of the groups' oil reserves are located. In
total, the region is planned to produce 5.3 million barrels of oil in 2008. The
capital program for the region amounts to USD 102.4 million.
Following the successful development in 2007, with several highly productive
wells added, the Lek Kharyaga field will be the largest producing field in the
region. Production at the field is expected to reach 2.2 million barrels in
2008. At the Kolvinskoye field, well tests have started and 300 barrels of oil
were produced from an existing exploration well. Kolvinskoye field capital
expenditures are budgeted at USD 21 million and will include infrastructure
projects and the drilling program which is planned to start in 2008.
In the Volga Urals region, 2008 production is planned at 4.7 million barrels.
The capital budget amounts to USD 37.6 million which will be spent on
infrastructure development and drilling of 8 wells in several fields. The main
producing fields in the region will be Novo-Kievskoye, Kochevnenskoye, and West
Kochevnenskoye with several other fields contributing to production.
In the Tomsk region, oil production is expected to reach 5.0 million barrels.
The capital budget amounts to 50.1 million USD which primarily will be spent
developing the Kluchevskoye- and Khvoinoye oil fields. The Kluchevskoye oil
field is planned to account for more than half of the oil production in the
region.
“Successful field development in all regions will continue to drive oil
production to new records in 2008. The new fields in the Timano Pechora region
lead the production growth” said West Siberian's managing director in a
statement and also noted: “Recently, we have received higher prices than ever
before for our oil, with netbacks now exceeding USD 40 per barrel. Revenues are
increasing quickly as a result of higher prices and production.”
For further information:
Maxim Barski, Managing director, West Siberian Resources Ltd., tel. +7 495 956
48 82
Eric Forss, Chairman, West Siberian Resources Ltd., tel. +46 70 523 86 62
Also visit www.westsiberian.com
West Siberian Resources Ltd is an independent oil company active in Russia. West
Siberian´s depository receipts are traded at the Stockholm Stock Exchange's
Nordic list under the symbol WSIB.
