"This a major event for Malka Oil and it is the most important
discovery since borehole 200 in year 2006. We are now beginning to
feel very confident that the oil fields Lower Luginetskoye (LL) and
Zapadno Luginetskoye (ZL) really are connected. This of course has a
very positive effect when it comes to the company's estimation of our
reserves and the ongoing commercialization of the license block" says
Fredrik Svinhufvud, CEO of Malka Oil AB and continues,"With data from the new borehole 580 situated between LL and ZL as a
base, we are now raising the company's official reserve estimation to
140-190 million barrels and can conclude that we are well on our way
to create large values for our shareholders."
Borehole 580
The results from borehole 580 shows significant deposits of
hydrocarbons divided into the geological layers Ju 10, Ju 7, Ju 2 and
Ju 1-4. Of these layers, Ju 1-4 and Ju 10 can be characterized as
confirmed reservoirs since they have also been discovered in other
boreholes in the field. The net pay in these two layers are 4.4 and
2.8 meters respectively. Ju 7 and Ju 2 have net pays of 2.2 and 2.4
meters respectively.
Analysis of core samples and seismic data from this borehole confirms
earlier assumptions that Zapadno-Luginetskoye and Lower Luginetskoye
are one and the same field. We are now of the opinion that only one
more borehole is needed to finally validate this thesis.
From a long-term view, our chief geologist are of the opinion that
the oil has migrated in from the southeast part of the field, see
illustration above, which in that case further should prove that
Block 87 is an extension of the neighboring Luginetskoye field.
Hydrocarbon bearing layers confirmed
Analysis of core samples and logs also confirms the earlier discovery
of a hydrocarbon bearing layer in the lower Jurassic intervals, Ju
10, but also deposits of hydrocarbons in the layers Ju 7, Ju 2 and Ju
1-4. It still remains to explain the extension of these oilbearing
layers and to test the productivity but data so far points to very
good reservoir characteristics.
All in all, the information above once again supports what has
previously been assumed, namely that the company's extractable
reserves are much larger than earlier estimations. Therefore the
company now estimates its extractable oil and condensate reserves in
the three existing oil fields on license block number 87 to 140-190
million barrels. The previous upgrade was done in November up to
100-150 million barrels.
A new company presentation covering these findings is as from today
available for downloading on Malka Oil's website www.malkaoil.se.
For further information, please contact:
Fredrik Svinhufvud, Managing Director Malka Oil, tel +46 8 5000 7811,
mobile +46 708 708 708
Richard Tejme, CFO, tel +46 8 5000 7812 mobile +46 707 31 52 17
For further information on Malka Oil AB, see the website
www.malkaoil.se
Malka Oil AB (publ) is an independent oil and gas production company
operating in the Tomsk region in western Siberia. Their current
position consists of oil and gas assets for license block number 87
in the said region. The block has a surface of 1,800 square
kilometres. There are currently three oil fields at the license
block, namely Zapadno-Luginetskoye ("ZL"), Lower Luginetskoye ("LL")
and the Schinginskoye oil field, and a large quantity of other not
yet drilled oil structures. The ZL and LL oil fields are in
production and these two oil fields field have also went through
reserve classification by the Russian State Committee of Reserves
(GKZ). A considerable drilling programme was carried out in 2007. The
GKZ registered extractable oil and condensate reserves in the
categories C1 and C2 amounted to 97 million barrels at the end of
2007
Malka Oil's license block is surrounded by a large number of
producing oil and gas fields.
Reasonable caution notice: The statement and assumptions made in the
company's information regarding Malka Oil AB's ("Malka") current
plans, prognoses, strategies, concepts and other statements that are
not historical facts are estimations or "forward looking statements"
concerning Malka's future activities. Such future estimations
comprise but are not limited to statements that include words such as"may occur", "concerning", "plans", "expects", "estimates","believes", "evaluates", "prognosticates" or similar expressions.
Such expressions reflect the management of Malka's expectations and
assumptions made on the basis of information available at that time.
These statements and assumptions are subject to a large number of
risks and uncertainties. These, in their turn, comprise but are not
limited to i) changes in the financial, legal and political
environment of the countries in which Malka conducts business, ii)
changes in the available geological information concerning the
company's projects in operation, iii) Malka's capacity to
continuously guarantee sufficient financing to perform their
activities as a "going concern", iv) the success of all participants
in the group, or of the various interested companies, joint ventures
or secondary alliances, v) changes in currency exchange rates, in
particular those relating to the RUR/USD rate. Due to the background
of the many risks and uncertainties that exist for any
oil-prospecting venture and oil production company in its initial
stage, Malka's actual future development may significantly deviate
from that indicated in the company's informative statements. Malka
assumes no implicit liability to immediately update any such future
evaluations.
