Lots to do and see... Please send Links and ideas!!! Perhaps Knowledge will reduce the "Dumb" Chatter....
Managements Discussion of Russian Joint Venture
(Excerpted from the companys 10-Q filed May 15th, 1998)
On March 16, 1998, the Company signed an agreement for the Exploration of the Mamourinskoye and Saratovskoye oil fields, with Zao Nafta ("Nafta") a Russian closed stock company. This agreement gave the Company 90 days in which to perform technical and legal due diligence evaluations of the Nafta properties. These oil fields are included in 17 oil and gas licenses (the "Licenses") held by Nafta, covering about 877,000 acres in the Samara and Saratov regions of Southwestern Russia, approximately 600 to 800 kilometers north of the Caspian Sea and southeast of Moscow. Upon favorable completion of the due diligence evaluation, a joint venture will be formed to operate these 17 Licenses with theCompany, as Operator, holding a 75% working interest.
The Company agreed to pay $11 million for the 75% working interest in the joint venture, $5.0 million in cash and $6.0 million in crude oil from 25% of the Company's future net production. The Company made a refundable advance on the purchase price of $300,000 to Nafta for their use in assisting the Company incompleting all legal and contractual conditions required by the Company.
Proven recoverable reserves, assigned by governmental authorities for these Licenses, are estimated at approximately 34 million barrels of oil.
The joint venture agreement will provide for the Company, as Operator, to develop and execute an investment program to activate 16 wells available for re-entry in the Mamourinskoye License. The Company will also commit to expend at least $25 million during the first 24 months of the joint venture on this program and other exploration and production activities within the respective License areas, as long as work can be technically and economically justified. However, the Company's commitments are determined by, and limited to, the joint venture programs to be established by the Company, so Nafta will be responsible for contractual License commitments which may exceed these levels. All work programs for Licenses are determined annually by the respective area governmental agencies controlling the Licenses and therefore are subject to change and revisions based on the results of the prior year's activity.
Should the Company decide to complete the Nafta transaction, based on existing information, it plans to immediately implement a development program which should establish production from at least 7 of the 16 wells located in the Mamourinskoye License. This program is estimated to cost approximately $1 to $2 million and should allow for the trucking of crude production of about 3,000 barrels of oil per day to local refineries within 120 days of the establishment of the joint venture. However, there can be no assurance, at this time, that this level of production will be reached. The License area is approximately 60 to 80 kilometers from some of the largest refineries located in Russia, and the main export pipelines pass within 50 kilometers of each of the 17 License areas.
(Excerpted from the companys 10-K filed April 15th, 1998)
ZAO NAFTA
On March 18, 1998, the Company signed an agreement with Zao Nafta ("ZN") a Russian closed stock company (the "Option") in which the Company received a90-day option to acquire a 75% working interest in a joint venture for thedevelopment of 17 oil and gas licenses (the "Licenses") in the Samara and Saratov regions of European Russia, covering approximately 877,000 acres.
The Russian government companies, who performed the initial exploration programin these regions, estimated total aggregate proven recoverable reserves on theLicenses to be approximately 35 million barrels of oil.
Should the Company decide to complete the transaction, pending confirmation of proven reserves and modification of certain license conditions, the Company would become Operator and would have complete control of all operations. It would also be required to make a minimum investment during the first 24 monthsof $25 million for the rework of 16 existing wells (which tested an aggregaterate of 6,200 barrels of oil per day), construction of all necessary infrastructure, seismic investigations, and processing and drilling of new wells. ZN agreed to use its best efforts to have the minimum investment requirement reduced by approximately 25% to $17.6 million, although such reduction is not a requirement for completion of the transaction.
The Company agreed to pay $11 million for the 75% working interest, $4.7 million in cash and stock and $6 million from 25% of its future net production,including a refundable $300,000 cash payment for the option. After closing, theCompany intends to commence a $2 million rework program on the 16 existing shut-in wells on the Samara license and place the wells in a productive mode of operation as soon as practicable. These shut-in wells are located in a developed area, with the necessary productive infrastructure in place to enable prompt sale of oil production, if and when this occurs.
Minerals Map of Saratov Region
Russian Enviornmental Concerns Map - 1996
Saratov Investor relations site
Geographical description of Saratov
Geographical description of Samara
Kirov Oil Refinery
7 ltl.Bryailskaya, Saratov, 410021, Russia
Product line: petrol, kerosene, pyrolysis raw materials, diesel fuel, mazut, oil bitumen, technical-grade sulphur, gas.
Saratov Description From S. State
D:, this link is all in Russian - HELP !!!
Saratov Nuclear Facility
Also has map showing volga and saratov
Oil Pipeline Leaks Near Saratov
Dunn and Bradstreet CIS Stocks
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