Stockholm, 2012-12-03 17:51 CET (GLOBE NEWSWIRE) --
Update of result from drilling and test campaign on Nizhnepaninsky and Muromsky 2 licenses.
The company strives to find partners (farm-out) for parts of these license areas.
Nizhnepaninsky license area
Well Yuzhno-Nazinskaya 232
The well was drilled to the planned target of Palaeozoic at depth of 2,800 meters.
Extensive studies have been made of the well formations different characteristics such as lithography and petro physical properties. Porosity and permeability have been measured and many core samples were taken and analysed. The reservoir has adverse characteristics (tight). Multiple layers of the reservoir have been tested for oil and gas (hydrocarbons) and indications of hydrocarbons (oil film) has been found in a number of the reservoir levels. The volumes have been small and are not commercial. The drilling rig is being demobilised.
Well Zapadno-Ambarskaya 6
The well was drilled to the target level and penetrated Jurassic 14-15 at a depth of around 2 800 metres. Extensive tests and core samples have been done (see well Yuzhno-Nazinskaya 232). Several layers have been tested for hydrocarbons. The most successful test was done in Jurassic 14-15 which produced around 0,9 m3/day with an emulsion of 50% oil and 50% water. However the productive part proved to be thinner than was indicated by the drilling logs. In Jurassic 7, at a depth of 2687-2691 meters, we tested non-commercial amounts of gas and condensate, Jurassic 1 and Jurassic 3-4 at a depth of 2554 – 2563 meters produced formation water at a rate of 0,65m3/day due to low permeability and porosity. The amounts of hydrocarbons are not commercial.
The drilling rig is being demobilised and a decision has been taken not to do “fraccing” in Jurassic 14-15 as the layer is not interesting enough. A new potentially better drilling location has been identified northeast of the existing well and to drill this the company will seek a farm-in partner in order to share the risk. This process has been initiated.
Muromsky-2 license area
Well Ragozinskaya 3
The well was drilled to the planned depth in Palaeozoic. Extensive tests and core samples have been done (see well Yuzhno-Nazinskaya 232). Three layers were tested for hydrocarbons and all three produced water and with no hydrocarbons. The deepest layer has good reservoir qualities but does not produce oil or gas. The drilling rig is being demobilised.
The 2D seismic that was collected during winter 2012 has been interpreted and vintage seismic has been reinterpreted. The result shows that at least one additional prospect has been identified. In order to drill this the company will seek a farm-in partner in order to share the risk. This process has been initiated.
The company is seeking partners
Seismic and other data has been collected and analysed and the results are deemed favourable for additional exploration wells, despite that the tests did not find any commercial amounts of hydrocarbons. The goal is to continue to drill in co-operation will Russian partners to limit the investments for the company and at the same time maximise the possibilities. This process has been initiated.
In parallel to this farm-out process the work is on-going to develop a business plan for next year. We will return with this later.
The company’s liquid assets amounts to MSEK 390 (Nov 26), of which MSEK 332 is being managed in Sweden and MSEK 58 (270 MRUB) in Russia, this equals SEK 9,68 per share.
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
Reasonable caution notice: The statement and assumptions made in the company's information regarding Petrogrand AB's ("Petrogrand") current plans, prognoses, strategies, concepts and other statements that are not historical facts are estimations or "forward looking statements" concerning Petrogrand'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 Petrogrand'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 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 RUB/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.
