Stockholm, 2012-04-17 17:55 CEST (GLOBE NEWSWIRE) --
Update on drilling campaign
Discovery of hydrocarbons in well N-232 on the Nizhnepaninsky license area
We have drilled through Cretaceous, Jurassic, weathered mantle and Paleozoic. Cores have been taken at several levels and we have indications of hydrocarbons in Cretaceous and Jurassic. The well has reached target depth at 2 800 meters. While it is encouraging to have indications of hydrocarbons, continued testing such as logging and production tests is required to determine the quality of the reservoir and to establish if there are any commercial amounts of hydrocarbons.
Traces of hydrocarbons in Zapadno-Ambarskaya – 6 on the Nizhnepaninsky license area
Current drilling depth at well Zapadno-Ambarskaya – 6 is around 2 535 meters. We have drilled through Cretaceous and are currently in Jurassic and we have indications of hydrocarbons in Jurassic. While it is encouraging to have indications of hydrocarbons, testing is required to determine the quality of the reservoir and to establish if there are any commercial amounts of hydrocarbons.
Delay of well Ragozinskaya – 3 on the Muromsky – 2 license area
We have established that our drilling contractor on Ragozinskaya – 3 (Muromsky – 2 license area) and Zapadno-Ambarskaya – 6 (Nizhnepaninsky license area) does not have the personnel or financial strength to deliver the drilling service for these two wells simultaneously. Petrogrand has therefore changed drilling contractor on the well Zapadno-Ambarskaya to the same drilling contractor as on N – 232. The original drilling contractor will continue to finalize the well on Ragozinskaya – 3 with strengthened staff.
It is estimated that this will not result in any major additional expenses for Petrogrand.
The drilling depth on Ragozinskaya – 3 is currently at around 1 480 meters. We have not yet reached the first target levels and we do not have any drilling results to communicate. Due to the abovementioned reasons the well will be delayed compared to the initial estimate.
For further information, please contact:
Maks Grinfeld, CEO, phone: +46 8 5000 7810
Sven-Erik Zachrisson, Chairman, phone: +46 8 5000 7810
Certified Adviser First North: Mangold Fondkommission AB
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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 Petrogrand conducts business, II) changes in the available geological information concerning the company's projects in operation, III) Petrogrand'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, Petrogrand's actual future development may significantly deviate from that indicated in the company's informative statements.
