Press Release Source: Nord Oil International Inc.
Nord Oil International/North-West Oil Group Targets Oil Producer in the Saratov Region Thursday June 29, 9:48 am ET
MOSCOW--(MARKET WIRE)--Jun 29, 2006 -- Nord Oil International/North-West Oil Group (Other OTC:NDOL.PK - News) is completing negotiations for the acquisition of NK SaratovNefteGeofizika in an all cash deal. This acquisition shall be made in parallel with the Magma deal which was announced last week. There is a definite interest by a number of European funds to provide the necessary funding for these acquisitions.
The President, Mr. Ernest Malyshev, states, "Russia is a key supplier of petroleum products to Europe, and the European banking and commercial institutions are eager to participate in all oil/gas ventures involving oilfields in Russia."
NK SaratovNefteGeofizika is an oil, gas and condensate producing company located in the lower Volga basin within the Saratov area, which is a mature petroleum region of Russia.
The purchase shall be for 100% of both the Company and its subsidiary, ZAO Itilneft.
The Company, which was formed 7 years ago, provides an excellent opportunity to acquire low priced assets in the very prolific Lower Volga Basin; its licenses have significant further upside potential with a large surface to explore within well-defined prospects. The Company has all the necessary services and facilities for growth. It presently has 142 employees and 3 certified chemical laboratories.
The assets of the target Company include among other advantages the following three areas of production.
The Ternovskoye Oil and Gas Field has 6 wells with a 7th well being set up, and it consists of the four reserves.
Its Klinsovskii Oil Reserve has 12,446,000 barrels of proven reserves and 17,994,000 barrels of probable reserves. In 2005, annual production was 584,000 barrels of oil..
The Vorobievskii Gas Reserve has 3 wells and the probable reserves are 505 MM cubic meters of gas with 83,000 tons of condensate. The gas reserves are to be in production in 2008.
The Vorobievskii Oil Reserve has 3 wells with 5,548,000 barrels of reserves of oil.
The Bobrikovskii Gas Condensate Reservoir has 4 wells with estimated gas reserves in the amount of 556,000,000 cubic meters.
The East-Ternovskoye Gas Condensate Field has gas reserves of 107MM cubic meters and 129,210 barrels of condensate. The probable gas reserves are 207MM cubic meters and 250,390 barrels of condensate.
The Ostrolukskoye Oil Field has 2 wells with a yearly production of 85,417 barrels with proven and probable reserves of 85,417,000 barrels of oil. There is also a direct pipeline to the Engels oil and gas base which belongs to the company.
The quality of the produced oil from these deposits shall obtain a premium price per barrel and this will economically provide a most efficient return.
The acquisition should be completed within 2-3 months and shall provide Nord Oil International/North-West Oil Group with another step towards its quest to greatly increase its presence in the European oil marketplace.
The President, Mr. Malyshev, assures the shareholders that this step as well as that of acquiring the Magma operations shall dramatically increase value for the shareholders and market presence, value and strength for the Company.
About Nord Oil International Inc.
Nord Oil International Inc. is a reporting, publicly traded Oil & Gas company trading under the ticker symbol NDOL on the US Pinksheets market as well as on the Frankfurt Exchange under symbol CXIA. Nord Oil International and the North-West Oil Group merged on May 11, 2006. The company is in the process of filing all regulatory statements and will change its name to the North-West Oil Group and will be issued a new ticker symbol. The company presently produces over 120,000 Metric Tons of crude oil yearly.
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