Strategy and objectives
Strategy
Growing opportunistically in Russia and Ukraine
Acquisitions made in 2009 include Aysky and Suyanovskoye in Bashkiria and Archangelskoye in the Black Sea. We will continue to evaluate acquisition opportunities.
Forming partnerships with the ideal partners
Our subsidiary in Ukraine has formed a strategic partnership with Ukrnafta, Ukraine's largest oil and gas company, which gives the company a 45% stake in the Lelyaki field. It also has a Joint Investment Agreement with Chornomornaftogaz, the leading Ukrainian oil and gas company in offshore development, that gives it a fifty per cent stake in three major license areas in the Azov Sea and Black Sea.
Offering transparency and structure to investors
We are listed on the NGM Stock Exchange. We aim to be a transparent and structured company that lives up to the expectations and requirements of professional investors.
Objectives for 2010
Ramping up production at Lelyaki
The Lelyaki oil field was previously one of the largest producing oil fields in the Soviet Union, with a cumulative production of 385 million barrels of oil. The total daily production in 2009 was over 600 barrels per day. We will increase production by drilling new wells and by re-entering and sidetracking suspended wells. Well interventions show very good economics as the required investments are low. The new wells are drilled in close proximity to pipeline infrastructure for rapid tie in.
Commencing production in Bashkiria
We aim to build a platform for oil and gas exploration and extraction by realising the potential of the Rustamovskoye, Aysky and Suyanovskoye license blocks. The short-term objective is to commence production from Rustamovskoye, where we have completed a successful exploration program and found oil in the first two wells.
Converting resources to reserves
We will take steps to pursue our potentially high-yield exploration opportunities offshore in Ukraine and onshore in Russia. Work will include analyzing historical exploratory data, collecting new seismic and selective and carefully assessed drilling.
Acquisition of new licenses
We have built effective personal relationships, strategic regional partnerships and a portfolio of projects onshore and offshore. Local knowledge and experience enables us to identify, acquire and exploit undervalued assets in Russia and Ukraine.
We hold an option to acquire a major share holding in Tomsk Refining AB, a Swedish company which owns a newly built refinery in Eastern Siberia.