General Information

Exploration

Large-scale exploration work in traditional oil-producing regions like Western Siberia, the Northern Caucasus and Timano-Pechora, as well as in new strategic regions like Eastern Siberia, the Far East and the shelves of the Black and Caspian Seas and the Sea of Azov form the central part of LLC Vankor-Oil exploration activity.

LLC Vankor-Oil geological exploration activities are aimed at replacing recoverable reserves that are produced, as well as preparing for production at the Company’s prospective projects.

Each year, the Company completes a significant amount of exploratory drilling and seismic survey work. Geological exploration work is also carried out through joint projects with both Russian and international partners.

In 2006, LLC Vankor-Oil maintained the leading position for such indicators as reserves growth per well drilled and reserves replacement cost. Growth in oil reserves stood at 1.4 million tones per well and reserve replacement costs did not exceed USD 16 per tones of oil equivalent. This leading performance was achieved through an optimal combination of 2D and 3D seismic survey work, professional data processing and interpretation, as well as well-designed distribution of exploratory wells.

The results of its geological exploration activity have allowed LLC Vankor-Oil to maintain its high reserves replacement ratio. In 2006, the organic replacement ratio for proved reserves (excluding acquisitions) exceeded 230%.

 Exploration work at LLC Vankor-Oil
subsidiaries

 

2005

2006

2007

Exploratory drilling, ths. meters

41,43

57,07

46,20

Number of exploratory wells

11

18

21

2D seismic survey work, linear km.

2 083

674

1 593

3D seismic survey work, square km.

1 920

1 141

945


Exploration activities at LLC Vankor-Oil
exploration projects

 

2005

2006

2007

Exploratory drilling, ths. meters

25,42

26,19

26,35

Number of exploratory wells

17

19

11

2D seismic survey work, linear km.

6 620

12 394

9 134

3D seismic survey work, square km.

100

3 551

1 917