EXPLORATION PROGRAM SCHEDULED ON TRACTS IN WESTERN SIBERIA

Russia has licensed Symskaya Exploration Inc. to begin exploring for hydrocarbons on two tracts covering 1.1 million acres in Krasnoyarsk Krai.

July 5, 1993

3 min read

Russia has licensed Symskaya Exploration Inc. to begin exploring for hydrocarbons on two tracts covering 1.1 million acres in Krasnoyarsk Krai.

The license, granted by Russia's Committee on Geology and Use of Subsurface Resources and the Krasnoyarsk Krai Soviet, includes oil and gas exploration, development, and production (OGJ, June 28, p. 44). Acreage covered by the license lies in Krasnoyarsk's 11 million acre Symskaya prospect area (SPA) in the eastern part of western Siberia. Symskaya Exploration is owned 80% by Equity Oil Co., Salt Lake City, and 20% by Coastline Exploration Inc., Houston.

If all goes as planned, the Equity-Coastline combine next fall will spud a 14,500 ft wildcat on SPA's Symskaya tract, which comprises about two thirds of the license area. Plans for the other SPA block, the Yeniseysk tract, will depend on exploration results on the Symskaya tract.

Work allowed by the license, which has a primary term of 25 years, is to conform with terms and conditions of a production sharing contract (PSC) signed in December 1992 by Symskaya Exploration and Yeniseyneftegasgeologia (YNG), Yeniseygeophysica, and Russian State Geological Enterprises (OGJ, Jan. 11, p. 20).

The PSC requires Symskaya Exploration to fund exploration and development and to recover costs from 80% of production after payment of an 8% royalty. Partners are to share remaining hydrocarbon flow based on production rate.

1 LEMOK DETAILS

Paul M. Dougan, Equity's manager of corporate development and president and chief operating officer of Symskaya Exploration, said the 1 Lemok wildcat will be sited on the 35 mile long, 6 mile wide Ishtykskaya anticline near the intersection of two seismic lines traversing the Symskaya tract.

Before Symskaya Exploration can spud the wildcat it must complete registration allowing it to operate in Russia and sign a drilling contract with YNG. Also, Russian officials first must approve 1 Lemok's proposed project design and results of an environment impact assessment.

Equity and Coastline presently are preparing to ship western bits and drillpipe to the wellsite. YNG has a rig at the location awaiting an order to start drilling.

"Our plan is to start drilling in October," Dougan said.

The wildcat is projected to Precambrian clastic and reefal carbonate formations that are productive east of the SPA. The well also will penetrate shallow Mesozoic strata that are productive farther west in western Siberia.

Because there are no wells nearby, general formation depths have been estimated based on old Russia seismic data.