CanBaikal awards letter of intent for Russia development

CanBaikal Resources Inc., Calgary, has awarded a letter of intent to Schlumberger Oilfield Services, a division of Schlumberger Ltd., New York City, for an integrated project management program on its 400-sq-km Untegey Block in Russia.


By the OGJ Online Staff

HOUSTON, July 16 -- CanBaikal Resources Inc., Calgary, has awarded a letter of intent to Schlumberger Oilfield Services, a division of Schlumberger Ltd., New York City, for an integrated project management program on its 400-sq-km Untegey Block in Russia.

The proposed project is a reservoir optimization program that includes risk-sharing development of the Kulun pool in western Siberia.

Robert Bolton, president and CEO of CanBaikal, said the proposed arrangement provides leading-edge technology and operational support, as well as optimizing the company's cash flow "through an innovative risk-sharing program."

CanBaikal anticipates the project will begin in midsummer with an optimization plan for the Kulun pool, followed by drilling three wells in the 2001-02 winter season. The companies plan to establish a relationship for the development of other fields in the block, said CanBaikal.

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