Zeta Petroleum signs term sheets to acquire producing Russian oil assets
Zeta Petroleum plc, the ASX listed oil and gas exploration and production company, is pleased to announce it has signed a non-binding term sheet to acquire Stikito Ltd (‘Stikito’) a private company which has a 100% owned interest in four production and exploration licences (the “VES Project”), located in the prolific Volga Urals basin,Orenburg Oblast region of the Russian Federation.
The licences are currently producing circa 220 barrels of oil per day (“BOPD”) and a 2012 independent reserves report (“IRR”) issued to a former owner indicates 2P reserves of 12.8 million barrels of oil equivalent (as set out in the table below). This proposed acquisition is in line with the Company’s strategy to build a leading exploration and production company, with Russia being a natural step-out from the current Eastern Europe focus area.
VES Project is located close to the supergiant Orenburg field, and the world class Karachaganak field. The VES Project consists of four previously producing or currently producing licences: Nikiforovskoye; Voinskoye; Veselovskoye; Besedinskoye. The VES Project offers significant development potential including low cost workovers of existing wellbores and high impact drilling to new horizons.