An updated independent Western reserve study raises Malka Oil's oil
assets, "Oil in place", to 332 million barrels on its two largest oil
fields compared to 255 million barrels in the previous report. This
can be read in an update from DeGolyer and MacNaughton (D&M) and is
an increase of 30% compared to the previous reserve study. The
updated study includes field data from the new exploration wells 580
and 210. The full report with classification in 2P and 3P reserves is
expected in February and Malka expects an equivalent increase of 30
percent in these reserves as well.
The American petroleum consultancy company DeGolyer and MacNaughton
(D&M) is conducting this study as well as the previous in accordance
with the internationally recognized Petroleum Resources Management
System that has been approved among others by Society of Petroleum
Engineers (SPE). Malka has asked D&M to develop an audited reserve
report that is expected to be ready by February 2009."The result of this update is encouraging and step by step we are
getting in line with Malka's own expectations. The previous report
showed lower values than expected but with this update we are getting
closer to where we want to be. The study confirms the potential in
the licence block and we are continuing to develop our operations
including further increase of the proportion of SPE classified
reserves" says Fredrik Svinhufvud, MD, Malka Oil.
The study does not include gas and condensate and it only encompasses
the three existing oil fields but not the unexplored structures on
the block.
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. Its current
position consists of oil and gas assets for licence 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 licence
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
have during 2007 went through reserve classification by the Russian
State Committee of Reserves (GKZ) and during spring 2008 a Western
reserve study made by DeGolyer and MacNaughton. The GKZ registered
extractable oil and condensate reserves in the categories C1 and C2
amounted to 97 million barrels at the end of 2007. The company's own
estimate of its extractable oil and condensate reserves, C1+ C2, in
the three existing oil fields on licence block number 87 is currently
140-190 million barrels. The Western reserve study estimation as of
April 30, 2008 amounted to 43.5 million barrels 2P and 90.6 million
barrels 3P oil reserves.
Malka Oil's licence 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.
