Stockholm, 2012-08-22 08:15 CEST (GLOBE NEWSWIRE) --
Update on the drilling campaign
Nizhnepaninsky license area
Well Zapadno-Ambarskaya 6
Production tests have been performed on different levels. Four in open-hole and four in cased hole. The results showed non-commercial flows of light oil (API 44.5) in Jura 14/15. In Jura 1 we received non-commercial flows of oil (API 37).
Unfortunately we have not been able to do the proper long-term tests in Jura 14/15 due to a casing that was damaged during the testing process. To do the production tests we have to drill through the damaged casing. This damage is located just above Jura 14/15 and is stopping us from reaching the level where we have found oil. This work will commence shortly and provided a success we expect the work to be finalised during the latter part of September. After that we can start the long-term production tests.
The sandstone reservoir we have found in Jura 14/15 amounts to around 14 meters, however the reservoir is tight so we plan to use hydraulic fracturing to get oil flows that allows us to register C1+C2 resources with the Russian authorities. Fraccing will be done during winter/spring 2013 since we need winter roads to mobilize the heavy equipment.
We estimate that the resource potential, provided that the fraccing can give commercial flows, is between 5-20 million barrels in this prospect, something we expect to be able to register as C1+C2 resources during next year.
Well Yuzhno Nazinskaya 232
Production tests have been performed at different levels. Two in open-hole and nine in cased hole. The results showed non-commercial flows of oil in Jura 1 / Bazhenov and Jura 6. The other levels produced water.
So far we have not been able to prove up commercial volumes, however we have performed a Vertical Seismic Profiling study in Jura 1 and Jura 6 to be able to determine the extent of these oil-bearing formations and the well location in these. The study will be completed during the latter part of September.
Muromsky-2 license area
Well Ragozinskaya 3
Production tests have been performed on different levels. Three in open-hole and three in cased hole. All levels contained water. The well will be plugged.
The 2D seismic we have shot over the northern part of the license block is being interpreted and will be finalized during the autumn. Preliminary results show that we have identified additional prospects in the license area.
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 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.
