Malka Oil's extractable reserves on the company's three existing oil
fields amounted to 91 million barrels as of April 30, 2008 according
to an independent Western reserve study. The estimation is based upon
Malka Oil's existing boreholes and supports the company's own
estimation 140 - 190 million barrels of extractable oil and
condensate on the three oil fields. A new study will be initiated
that amongst others will include new production data and a new
seismic report.
The American petroleum consulting company De Golyer and McNaugton has
conducted the study according to the internationally acknowledged
Petroleum Resources Management System which has been established by
among others the Society of Petroleum Engineers (SPE).
The estimation of the proven and probable oil reserves (Proved P1 and
Probable P2) amounts to 7.7 million respectively 35.9 million barrels
and the possible reserves (Possible P3) to 47.0 million barrels,
which in total gives 90.6 million barrels 3P. The estimation is in
line with the earlier Russian reserve estimation of 97 million
barrels which also includes the gas condensate.
The reserve study is not including the gas and condensate reserves
and does not take the test result from the boreholes 210 and 580 into
consideration. These boreholes will be included in an updated study
which is planned to be completed before end of this year. Also, the
undrilled structures which have been identified are not part of the
study, only the three existing oil fields are included. The study
supports Malka Oil's own internal estimation of 140 - 190 million
barrels."Our development programme is today not optimized according to
Western SPE-norms. We therefore see this report as a starting-point
for the work to even more efficiently capture the potential of the
license block and to focus our drilling programme on increasing the
SPE-classified reserves", says Fredrik Svinhufvud, Managing Director
Malka Oil.
To increase the proportion of proven and probable reserves, Malka Oil
will engage an independent expert to analyze the company's
development plans, the operation of the field and also to assist with
the designing of new development plans. In this way the operation
will be optimized with regards to SPE-norms going forward.
Malka Oils has also assigned De Golyer and McNaugton to conduct a
more detailed reserve estimation in the form of a complete Competent
Person's Report (CPR) which is expected to be ready before end of
this year. This report will include the conclusions from the revised
development plans, new test results from the boreholes 210 and 580,
new production data from existing wells and also the new seismic
report from the northern part of the license block.
For further information, please contact:
Fredrik Svinhufvud, Managing Director Malka Oil, tel +46 8 5000 7811,
mobile +46 708 708 708
Richard Tejme, CFO, tel +46 8 5000 7812 mobile +46 707 31 52 17
For further information on Malka Oil AB, see the website
www.malkaoil.se
Malka Oil AB (publ) is an independent oil and gas production company
operating in the Tomsk region in western Siberia. Their current
position consists of oil and gas assets for license block number 87
in the said region. The block has a surface of 1,800 square
kilometres. There are currently three oil fields at the license
block, namely Zapadno-Luginetskoye ("ZL"), Lower Luginetskoye ("LL")
and the Schinginskoye oil field, and a large quantity of other not
yet drilled oil structures. The ZL and LL oil fields are in
production and these two oil fields field have also went through
reserve classification by the Russian State Committee of Reserves
(GKZ). A considerable drilling programme was carried out in 2007. The
GKZ registered extractable oil and condensate reserves in the
categories C1 and C2 amounted to 97 million barrels at the end of
2007. The company's own estimate of its extractable oil and
condensate reserves in the three existing oil fields on license block
number 87 is currently 140-190 million barrels.
Malka Oil's license block is surrounded by a large number of
producing oil and gas fields.
Reasonable caution notice: The statement and assumptions made in the
company's information regarding Malka Oil AB's ("Malka") current
plans, prognoses, strategies, concepts and other statements that are
not historical facts are estimations or "forward looking statements"
concerning Malka's future activities. Such future estimations
comprise but are not limited to statements that include words such as"may occur", "concerning", "plans", "expects", "estimates","believes", "evaluates", "prognosticates" or similar expressions.
Such expressions reflect the management of Malka's expectations and
assumptions made on the basis of information available at that time.
These statements and assumptions are subject to a large number of
risks and uncertainties. These, in their turn, comprise but are not
limited to i) changes in the financial, legal and political
environment of the countries in which Malka conducts business, ii)
changes in the available geological information concerning the
company's projects in operation, iii) Malka's capacity to
continuously guarantee sufficient financing to perform their
activities as a "going concern", iv) the success of all participants
in the group, or of the various interested companies, joint ventures
or secondary alliances, v) changes in currency exchange rates, in
particular those relating to the RUR/USD rate. Due to the background
of the many risks and uncertainties that exist for any
oil-prospecting venture and oil production company in its initial
stage, Malka's actual future development may significantly deviate
from that indicated in the company's informative statements. Malka
assumes no implicit liability to immediately update any such future
evaluations.
