Strat Petroleum, Ltd. Enters into Agreement to Acquire 24.5% Interest in an Orenburg Oil & Gas Property 8/3/2004 4:21:00 PM
TORONTO, Aug 3, 2004 (BUSINESS WIRE) -- Strat Petroleum, Ltd. (OTCPS: SPRU) has entered into an agreement to acquire a 24.5% working interest of a large field, known as the Rozhdestvenskoe oil site, with proven reserves of:
-- 75,217,000 bbls of crude oil
-- 109 billion Btu of natural gas
-- 483,000 metric tons of gas condensate
Gazprom, a major Russian oil & gas producer and refiner currently own the field in the Orenburg Region, West of the Ural Mountains. The field is also only 20 km from the Orenburg-Kopanka Pipeline with a major refinery located 60 km from the field. The site has been recommended as one of 15 most profitable oil fields discovered.
The Orenburg Region is a leading oil and gas producer. Exploration has revealed over 140 oil and gas deposits. Proven reserves of oil exceed 963.1 million bbls, while gas estimates are 28.23 trillion Btu. The region has an estimated 40 to 50 years of commercially exploitable natural gas reserves. Orenburg currently produces between 63.5 and 64.3 million bbls of crude oil. Only about 1% of proven reserves have been extracted which not only leaves significant quantities yet to be extracted but large tracts of land still untested. Strat Petroleum has identified several other opportunities that are under review.
Reserves and Production of the Site:
-- Initial research of the area was done in 1986 and the first
well was drilled in 1987, which proved to have oil and natural
gas.
-- Six more wells were drilled subsequently, of which four (4)
proved to be productive.
-- In 1991, drilling occurred at deeper levels to establish the
seismic structure of the site.
-- In 2001 the seismic structure was further evaluated with
positive results, resulting in the conclusion that production
of oil and gas would result from a program of deep drilling.
-- The four wells have been capped currently. Prior to be being
capped the test production wells produced:
-- 302,400 bbls of crude oil;
-- 1.62 billion Btu of natural gas; and
-- 25,000 metric tons of gas condensate
-- These wells are capable of producing similar or greater
quantities upon being uncapped.
-- The cost of extraction of crude oil will range from US $6.60
to $10.60 per bbl depending on the depth of the reserve
Strat Petroleum, Ltd. strategy is to build a strong asset value through the acquisition of oil & gas properties with proven reserves or producing/capped wells initially in the Russian Federation. Should you wish any additional information on our projects or management team, please visit our website at www.stratpetroleum.com or contact our office at (416) 419-6826.
SOURCE: Strat Petroleum, Ltd.
Strat Petroleum, Ltd.
Mike Long, 281-565-5983
mike@companyreporter.com
www.companyreporter.com
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