Geos Ltd. has acquired an option on an 11,750 sq km concession in Tatarskaya, Russia.
The Haifa, Israel, seismic data interpretation company has 4 months to form an industry group with financial and technical resources to develop 350 million bbl of proved oil reserves in 57 fields at about 6,500 ft.
Geos said the area, adjoining the Tatarskaya capital, Kazan, also has the potential with further exploration for another 5 billion bbl of oil. About 100 anticlines have been identified for possible exploration.
Geos signed the option agreement with Tatneft, the government oil company.
The concession will cost less than $500,000. Royalties will be 12-20%. Tatneft has yet to decide on the final figure.
Geos said Tatneft, which probably will be a 51% partner in any new venture, has started to develop two fields with reserves of 75-100 million bbl. Tatneft expects 20-45% of production from new development on the concession to be exported.
Geos employs a number of geophysicists and geologists who emigrated to Israel from the former Soviet Union. It was through those contacts that Geos acquired the option.
Geos said it also is close to signing an agreement with an undisclosed oil company to participate in a deal signed with authorities in the Russian oil production region of Tomsk. The agreement is to call for Geos to assist in finding a company with technical and financial ability to initially develop at least 73 million bbl of oil.
In a separate venture, Geos said it has been asked to help the Astrakhan government translate its seismic data on oil and gas exploration and adapt them to western standards. This would be the first step toward opening the area for exploration in collaboration with Geos.
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