Irkutsk Oil Company added another block to its portfolio of assets

October 18

Irkutsk Oil Company won the state-run auction on exploration and further development of the Sredne-Nepsky block. The block is located in Katangsky district of Irkutsk region and has an area of 4,580 square km. Estimated resources under C3 category are 14.5 million tons of oil while resources under D1 and D2 category are 44.9 and 11.3 million tons of oil correspondingly. Estimated resources of gas under D1 and D2 category are 50.3 and 7.7 bcm correspondingly.

Irkutsk Oil Company won the state-run auction on exploration and further development of the Sredne-Nepsky block. The block is located in Katangsky district of Irkutsk region and has an area of 4,580 square km. Estimated resources under C3 category are 14.5 million tons of oil while resources under D1 and D2 category are 44.9 and 11.3 million tons of oil correspondingly. Estimated resources of gas under D1 and D2 category are 50.3 and 7.7 bcm correspondingly.

The starting price was 100 million rubles and the final price settled at 110 million rubles. Irkutsk Oil Company outbid two other participants. Mrs. Olga Gaykova, a head of Natural Resources department of Irkutsk government greeted the outcome of the auction as the first successful in 2011. Five out of 7 previous auctions didn’t draw any interest at all and one was voided. She also stated that the Sredne-Nepsky drew more interest as it is more conveniently located toward ESPO pipeline and somehow studied in the past. Mr. Nikolay Buynov, Chairman and COO of Irkutsk Oil Company explained that the company was interested in this acquisition as the Sredne-Nepsky lies on a pipeline route between Danilovsky and Yaraktinsky fields which is currently under construction and it’s a good fit into the future midstream infrastructure the company is building. He also stated that there is a good chance to make some discoveries at the Sredne-Nepsky and potential partners are welcomed. With this acquisition a total portfolio of licenses reaches 14.

Irkutsk Oil Company shipped the 1st million ton of crude oil via ESPO INK increased production by 77% to 827 k-tons in the first three quarters of 2011