On February 1, 2018 UDS oil acquired Chepetsk Oil-and-Gas Production Department. The enterprise possesses a license for geological exploration and production of oil at Zapadno-Krasnogorsky site of subsurface resources.
The site with an area of 135.1 km2 is located in Krasnogorsky district at the north-west of the republic. Potapovskoye, Zotovskoye and Nefedovskoye fields are densely located thereat. As of January 1, 2018 the geological reserves thereof amounted to 12.9 mln. tons according to А+В1 category, the recoverable reserves amounted to 3.5 mln. tons.
The acquisition of Chepetsk Oil-and-Gas Production Department opens the opportunities for further operation of UDS oil in the north of Udmurtia. The Company plans to take part in the auctions for the development of promising sites of the republic northern districts from the unallocated subsoil reserve fund.
Zapadno-Krasnogorsky site verges upon Kasalinsky site that will be put into operation due to a synergy with Chepetsk Oil-and-Gas Production Department. Physical proximity of two assets with respect to each other will help successfully implement the plans on building up production in the republic in the nearest future.
- The acquisition of Chepetsk Oil-and-Gas Production Department is a part of the program of UDS oil business development in the territory of Udmurtia, stated Yuri Shlyapnikov, CEO of UDS oil. - The strategic task regarding a new asset is to reach a new level of annual production of 50 thous. tons. A development of optimization solutions at the producing wells stock and infrastructure facilities is in progress now.
We plan to increase production through production-involvement of reserves not drained before by implementing workover solutions at the active wells stock, drilling new wells and sidetracks as well as a complex of compensatory measures.
The development of a new asset of UDS oil will contribute to strengthening positions of the Company as one of the industry leaders of Udmurtia, increase its competitiveness on the Russian market and open prospects for implementation of new discipline-specific projects.