A private Houston independent, Kazakhstan's largest acreage holder, has signed agreements that relate to exploration and exploitation on several of its own and another's blocks in the Precaspian basin.
First International Oil Corp., Houston, engaged UBS Warburg LLC to assist in raising as much as $60 million in equity in a private placement to fund opportunities in Kazakhstan.
Rosneft and Itera Holdings signed letters of intent to explore the 829,000-acre Federovskoye license adjacent to supergiant Karachaganak oil and gas field jointly with FIOC. First International will retain a 25% interest in the block after Rosneft and Itera complete earning requirements.
Rosneft and FIOC are to drill a deep well to Permian clastics on the 1.2 million acre Adaiski block 70 km east of and on trend with supergiant Tengiz oil and gas field. The letter of intent calls for Rosneft to share in back costs FIOC incurred and fund the deep well to earn a 50% interest.
FIOC signed definitive agreements with Falcon Energy Overseas Inc. of Delaware to create First Falcon Oil and Gas Ltd., a 50-50 joint venture. First Falcon will explore for and develop shallow oil fields on FIOC's 3.2 million acre Sagiski block. Falcon Energy has German financial backing.
FIOC will participate with Potential Oil of Kazakhstan in exploring the 1.1 million acre Begaidar block, which offsets FIOC's 97.5% owned Sazankurak oil field. Discoveries could be tied into Sazankurak facilities.
FIOC produces 4,000 b/d of oil from two fields with net proved and probable reserves of 70 million bbl of oil and the potential for a further 230 million bbl of oil and oil equivalent. It holds 7.4 million acres in the basin and has invested $100 million there.
