SWISS FIRM TO PRODUCE SOVIET OIL

Panoco Inc., Nyon, Switzerland, has signed a joint venture agreement for drilling and oil production in the U.S.S.R.'s Tatar republic. The venture, designated Blue Kama, is to drill about 2,000 wells during 10 years to maximize production and recovery in seven fields covering 78,461 productive acres. Panoco pegs original oil in place at 1.69 billion bbl. The program calls for horizontal drilling and well completions, followed by secondary and tertiary recovery.

March 18, 1991

Panoco Inc., Nyon, Switzerland, has signed a joint venture agreement for drilling and oil production in the U.S.S.R.'s Tatar republic.

The venture, designated Blue Kama, is to drill about 2,000 wells during 10 years to maximize production and recovery in seven fields covering 78,461 productive acres. Panoco pegs original oil in place at 1.69 billion bbl.

The program calls for horizontal drilling and well completions, followed by secondary and tertiary recovery.

Panoco will operate the 50-50 venture under its agreement with Tatneft, the Tataria petroleum administration. The Swiss company prepared a development program after meeting with the Soviet deputy minister of oil and gas.

Panoco plans to start oil production by yearend. It will handle exports and sales.