Benton Oil & Gas Co. is moving to expand its exploration/development program in the Russian republic.
The Oxnard, Calif., company last week disclosed it has signed a letter of intent with Purneftegasegeologia Industrial Association (PIA) for joint venture exploration in another area of western Siberia.
Selection of geological sites, as well as initial exploration, will begin this year. No further details were disclosed. The letter of intent involves a program separate from Benton's present Russian joint venture.
CURRENT PROGRAM
Geoilbent Ltd., Benton's present joint venture with Russian partners PIA and Purneftegas, is under way in western Siberia's North Gubkinskoye oil and gas field. Geoilbent, approved by all appropriate Russian regulatory bodies, has the right to explore for, produce, and market North Gubkinskoye oil, gas, and condensate.
The field, delineated by more than 40 slim holes, covers an area about 15 miles long and 4 miles wide. Benton said the expendable holes logged numerous oil and gas sands and have been production tested. But the held has never been commercially produced.
The 1992 development program, which started with the drilling of six wells, is the first phase of a North Gubkinskoye development program. Phase 1 will include installation of production facilities and construction of a 25-30 mile pipeline this year.
Benton, which will contribute about $7.5 million for the operations, expects production to begin this year.
Phase 1's main objective is to achieve production of 10,000 b/d. As further phases take place during the next 5 years, the objective will rise to 60,000 b/d or more.
Benton said North Gubkinskoye field is estimated to hold ultimate recoverable reserves of about 300 million bbl of oil, 40 million bbl condensate, and 2 tcf of gas. It also said the figures, based on evaluations by the company's independent consultants, coincide closely with those calculated by the Russian partners.
Benton has a 34% working interest, the two Russian partners 33% each. Benton plans to recognize its portion of reserves during the next few years as field development continues.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
