AUSSIE INDEPENDENT TO ACQUIRE RUSSIAN TRACTS

Australian independent Coplex Resources NL has won exclusive rights to acquire a 50% interest in oil and gas joint ventures in the Krasnodar region of the Russian Federation on the Black Sea's northeast coast. In other action, Ovoca Resources plc, Dublin, signed a letter of intent to develop mineral resources in Georgia. And TM Oil Production Ltd., London, secured processing and export of production in western Siberia.

Dec. 27, 1993

3 min read

In other action, Ovoca Resources plc, Dublin, signed a letter of intent to develop mineral resources in Georgia.

And TM Oil Production Ltd., London, secured processing and export of production in western Siberia.

COPLEX DEAL

Coplex of Hobart, Tasmania, signed joint venture agreements to evaluate the exploration and development potential of two areas alongside the Azov Sea. The company has first refusal on all future projects in Krasnodar.

The deal was made with two state companies based in the city of Krasnodar: geophysical company Yuzhmorgeologiya (YMG) and oil and gas exploration, development, production, and refining company Krasnodarneftegaz (KNG.

KNG holds exploration and development rights to 17 areas covering 6,000 sq miles in Krasnodar and western Siberia. Reserves in the region covered by the deal are estimated at 2.1 billion bbl of oil.

KNG has produced more than 1.4 billion bbl of oil since 1943 and last year produced 11 million bbl of oil and drilled 29 wildcats and 27 development wells.

The two areas licensed to the Coplex-YMG-KNG joint venture are said to contain 12 drillable structures. Coplex said it is feasible to drill six of the structures during 1994 and 1995.

The company intends to invite participation by multinational oil companies before making final its joint venture license commitments.

Area 1 lies just north of Anastaviyevsko-Troitskaya field, with 86 sq km of closure and estimated reserves of 700 million st-tk bbl of oil and 3.53 tcf of gas. Coplex said each prospect in the 1,900 sq km area covers one-fifth to one-fourth the area of Anastaviyevsko-Troitskaya field.

Area 2 holds the Sladkovskaya structure, where tests of a well recently drilled by KNG flowed 7 MMcfd of gas and 1,400 b/d of 53.5 gravity condensate. The well, a Miocene discovery was drilled to 2,455 m. Coplex said Area 2, covering 900 sq km, lies at the western end of a prolific oil belt stretching to the Caspian Sea.

The Krasnodar region is said by Coplex to lie conveniently close to export routes via the oil terminal at Novorossiisk on the Black Sea coast.

GEORGIA, WESTERN SIBERIA

Ovoca signed a letter of intent with the patriarchate of Georgia granting the company exclusive rights to negotiate development of oil, copper, and other minerals near Poti, on the Black Sea's east coast.

Ovoca said the patriarch of Georgia was the largest landowner in the republic before the Soviet Union took control. Ownership of this land, which covers much of Georgia's mineral wealth, is being returned to the patriarch.

"This deal is part of a process by which all state assets in Georgia are being privatized," said Ovoca Chairman Jim Stanley. "We are presently evaluating the various assets covered by the letter of intent to determine the most appropriate method of development."

TM Oil Production is developing South Vat-Yoganskoye field in western Siberia. The company is a 50% partner in a joint venture with Siberian oil companies Lukoil and Sinco and exploration association Megionneftegazgeologiya.

Now TM has signed a cooperation agreement with production association Kogalymneftegaz for processing and export of crude oil arising from TM's 50% interest in the field.

Dana Exploration plc, Dublin, is negotiating to buy TM. Dana Chairman Kevin Burke said field operations are planned to begin in first quarter 1994 in South Vat-Yoganskoye field, which is only 8 km from infrastructure.