The Company’s acquisition of Mezhlisa resulted in control over the combined exploration and productions license 71-1 “Ellej-Igajskoje” in Tomsk Oblast, Russia.
The licence is a combined prospecting and production licence, TOM01559NR, which runs until September 2035.
In brief, the licence terms stipulate that the licensee shall:
- Prepare a work programme, which can be revised while it is being performed
- Perform re-entry of one of the two older wells on the licence block
- Reinterpret seismic data and design a prospecting and work programme
- Perform a prospecting programme within five years
If a commercial discovery of hydrocarbon is made and the licensee ascertains reserves, the following will apply for the licensee:
- An appraisal programme must be developed and agreed on within 12 months
- A seismic 2D or 3D programme must be commenced or a new well drilled within 24 months
- At least two wells must have been drilled within four years, of which at least one must have been drilled in the third year
- A reserve report must be drawn up and approved within six months of discovery
In addition to these terms, there are terms for environmental protection, reporting to authorities and industrial safety etc.
The licence area is 34 km2, and has been designed to cover the only known structure on the licence area.
Interfox Resources AB believes that hydrocarbons primarily can be found at three different depths, in the layers from the Jurassic period and in the weathered zone in the layer between the Jurassic and Devonian layers, as well as down in the Devonian layers, between depths 3,000 and 4,500 metres deep. The Devonian layers have traditionally not been prospected to a great extent in Russia, and it was not until recently that interest in them has increased significantly. Previously, the rich assets in the Jurassic layers or younger formations were more than enough to meet needs and have been better adapted to existing established technology. The structure is deemed a reef-like structure with a very large amplitude between the top and the bottom. The licence block is located in a part of the Western Siberian Basin which comprises a sub-division, the Nuyrola Basin, which has 13 or so similar properties with established hydrocarbon deposits in the Devonian layers.