Arawak Energy planning acquisitions in Russia, Kazakhstan

By OGJ editors
HOUSTON, July 19 -- Arawak Energy Corp., Anguilla, British West Indies, plans to acquire a 50% interest in ZAO PechoraNefteGas of Western Siberia and a 100% interest in Altius Energy Corp., a Canadian company that operates in the Precaspian basin in western Kazakhstan.

Arawak will acquire 50% of the shares of the Cypriot holding company of PechoraNefteGas from Vitol Russia BV for $39.5 million plus a working capital adjustment estimated at $3 million. Rosco SA, which holds 41.28% of Arawak's shares, is an affiliate of Vitol. Valkyries Petroleum Corp., Vancouver, BC will hold the other 50% of PechoraNefteGas.

PechoraNefteGas produces 6,800 b/d of oil from a gross 24 million bbl of proved reserves in Devonian shelf-edge reefs in the Sotchemyu-Talyu fields in the Pechora basin in Russia's Komi Republic. It also holds exploration licenses on the unexplored 6,000 sq km Mutnomateric block and the small Kadzherom block.

A 3D seismic program was under way in May 2004 to delineate locations for infill drilling, which Valkyries said could boost production from the fields above 10,000 b/d. The fields are connected to the Transneft pipeline.

Consideration for Altius is 61.4 million Arawak shares and up to $7.3 million cash.

Altius, whose principal shareholder is Rosco, has interests in Akzhar, Besbolek, and Karataikyz fields, where production climbed to 2,100 b/d in June 2004 from 760 b/d in 2003. Further production growth is expected through 2005. Gross reserves are 12 million bbl proved plus 13 million bbl probable.

Arawak also has interests in Azerbaijan (OGJ Online, June 17, 2004).

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