Volga Gas, which currently holds four subsoil licenses in the Volga Region of European Russia, has provided an update on supra-salt activities drilling in its Karpenskiy License Area.

Highlights

C1 and C2 recoverable oil reserves of 14 million barrels approved on the Uzenskaya by the State Committee of Reserves. Well Uz#5 was hooked up to the facilities and produces ~400 bbls a day with 6 mm choke.
Well Uz#6 is still drilling but the principal target reservoir appears to be absent. Well Uz#7 exploration spudded on the East Uzenskaya prospect.

Russian category C1 and C2 recoverable reserves have been calculated following the results of Uz#3 and Uz#4 wells and approved at State Reserves Committee as follows:

Crude Oil Reserves

C1 Recoverable 0.983 million tonnes (7.37 million barrels) C2 Recoverable 0.886 million tonnes (6.51 million barrels) Total C1/C2 1.869 million tonnes (13.88 million barrels)

Well Uzenskaya#6 was spudded in February 2009 targeting the principal Cretaceous reservoir, which is productive in the Uz#3, Uz#4 and Uz#5 wells. The well has reached its target depth of 1,100 meters without encountering the anticipated reservoir. Testing of other layers is ongoing.

Meanwhile the Uzenskaya#7 exploration well was spudded in March and is expected to complete during April. The well is being drilled on the East Uzenskaya prospect on a location approximately 7km east of the main Uzenskaya field processing facilities.

Mikhail Ivanov, Chief Executive of Volga Gas commented, "Following three very successful well results on the Uzenskaya field, all of which are now in production and producing at a daily rate of 1,200 barrels of oil per day; Uz#6 was clearly a disappointment, however, we do not expect the well result to have a significant impact on the reserves reported today.

"The Russian C1/C2 reserve classification we have been given reflect principally the success with the Uz#3 and Uz#4 wells. We are hopeful that the Uz#5 well will convert some of the C2 reserves into C1 reserves."

Tags: Volga Gas Plc