Aladdin to acquire 4 licences in Russia

Aladdin Oil & Gas Company ASA has entered into a letter of intent to acquire 80 percent of four Russian oil licences in the Orenburg-area for USD 17, 5 million. One of the licences is presently in production and produces approximately 250 barrels of oil per day. The total reserves, C1 and C2, are estimated to 25 million barrels.

The licences are located around Aladdin Oil & Gas` existing licences in the mature Orenburg-area, which gives us a god opportunity to assess the geology and the reservoir conditions of the fields. The test reports are very promising. In addition, it’s our experience that the new 3D seismic studies could reveal a significant potential in the licences, Espen Glende comments, CEO of Aladdin Oil & Gas Company.

The licences were drilled in the 1970s and 1980s – and range from two to 50 square kilometres. The reservoir depths range from 1500 to 3500 meters. Presently, one of the licenses produce’s approximately 250 barrels per day, while the licenses’ historical cumulative production is around four million barrels. The remaining reserves, C1 and C2, are estimated to 25 million barrels.

Source : http://www.aog.no/