Kazakhstan, Astana, July 24 / Trend D. Mukhtarov /
Kazakh company KazMunaiGas Exploration Production (KMG EP) during a testing of a subsalt well drilled in March 2013 on Fedorov block (west of Kazakhstan, near the city of Uralsk) obtained a gas flow of 239.45 thousand cubic meters per day and condensate of 247 cubic meters per day by the 11 millimeter socket, the company's report said.
"At present, JSC NIPINeftegas is preparing a report on reserves at the Fedorovskiy block regarding the results of the evaluation and exploration activities of 2010. It is expected that a report will be prepared on reserves in the fourth quarter of 2013," the statement said.
According to the earlier report of an independent consultant DeGolyer and MacNaughton (petroleum consulting company), KMG EP's share (50 percent) of condensate and gas reserves at Rozhkovskoe field at Fedorovskiy block in category 2P amounts to 66.7 million barrels of oil equivalent, of which 27.5 million barrels of oil equivalent (3.5 million tonnes) of condensate and 39.2 million barrels of oil equivalent (6.7 billion cubic meters) of gas as of June 1, 2011.
According to the company, gas exploration works on the Fedorov block have been carried out at 10 exploratory wells since 2003, six of these were successful, one was dry, one is being tested and two wells are being drilled. It is expected that the drilling and testing of the above three wells will be completed before the end of 2013.
In 2011 KazMunaiGas acquired a 50 percent stake of Ural Group Limited (UGL) from an agreement with Exploration Venture Limited (EVL), which holds a license to explore Fedorov field.
The transaction price was $149.1 million, including $61.3 million for the shares and $87.8 million dollars for the rights to the joint-stock loans.
UGL owns 100 percent of LLP Ural Oil and Gas (UOP), which is engaged in the exploration of Fedorov block in close proximity to a number of large existing fields, the report said. A subsoil use contract is valid until May 2014 and provides the right to enter into a further contract for the production of hydrocarbons.
Under the deal, shareholder loans will be paid in favour of KMG EP after the start of commercial production.
Rozhkov oil and gas field was discovered on Fedorov block in 2008, which is being assessed by UOP. According to reserve estimates for the end of 2010, approved by the State Commission of Kazakhstan on stocks, the total recoverable gas and condensate reserves of C1 + C2 category at Fedorov block are 203.4 million barrels of oil equivalent.
Russian Gazprom's Orenburg-Western Europe main gas pipeline passes through the Fedorov block. In addition, Atyrau-Samara main gas pipeline and Karachaganak-Atyrau pipeline that provides the possibility to enter into global market via the system of the Caspian pipeline consortium also pass near the block. KMG EP is in the top three oil producers in Kazakhstan.