Project Profile
Value: Undisclosed
Location: Nyurol basin, southern section of the Tomsk basin, adjacent to the licence Block 8, Russia
Production: 70 to 80 barrels per day
Area: 360 square kilometres
Block 95-3 covers 360 square kilometres in the southern section of the Tomsk basin and lies adjacent to the Imperial Energy-owned licence Block 86 which produces more than 15,000 barrels of oil equivalent per day. Three wells have been drilled to date on Block 95-3 since the 1970’s which indicated a number of oil saturated zones from the Paleozoic horizons up to the Jurassic layers that were considered highly prospective for hydrocarbons. The first well on the block, Well-1, was drilled on the Parbigskaya structure and showed oil internals and flows from the Jurassic layers. Sprint Energy has entered an option agreement with Terra Limited which could see it earn up to a 75% interest in Block 95-3. The option gives Sprint an exclusive 60 day period to carry out due diligence on the block which is currently 100% held by Terra.
If it moves ahead with the deal, it will pay a US$300,000 option payment upon signing a formal purchase agreement after which time it will have six months to spend US$1.2 million on drilling and access activities to earn an initial 25% interest in the project. It then has the option to earn up to 55% in the project by spending another US$10 million to fund drilling and exploration activities on the block over another 12 month period. Sprint can then earn up to 75% over an additional 12 month period by electing to spend another US$10 million on drilling and exploration activities. In terms of the field, there is potential to increase the current production potential from Well-1, estimated to be 70 to 80 barrels per day, to about 150 to 200 bpd by early 2013 with minimal expenditure.
Operators:
Terra Energy: Operator with 100% interest