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2001. A separator |
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2006. Commercial Custody Transferring Station |
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About |
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CanBaikal Resources Inc. (CanBaikal) is an oil and gas exploration and development company which was formed in 1996 by a group of Canadian oil executives to pursue the opportunities created by privatization of the Russian petroleum industry.
CanBaikal participated in the first open tender for oil and gas properties in which foreign companies could participate on an equal basis with Russian companies. The Company was successful in bidding for the Untygei Block (Block 146), of the Khanty-Mansiysk region in Siberia. Block 146 consists of two oil fields: Kulun and Untygei. CanBaikal was awarded a 25 year exploration and production license in 1997. The 400sq. km block had two temporarily abandoned discovery wells.
Gilbert Laustsen Jung Associates Ltd., an independent engineering company of Calgary, Alberta Canada, estimated the recoverable reserves of the license area at:
- Proved reserves - 10.987 million barrels;
- Probable plus proved reserves - 20.787 million barrels;
CanBaikal operates in Russia through its branch in Nefteyugansk and its office in Moscow.
In August 2000 the Company completed construction of a 28 km oil pipeline to the West-Ugut booster pump station equipped with its own custody transfer station.
In September 2001 CanBaikal was purchased and became part of the same corporate group as Petrotek Holding, a Russian Group of Companies. The new owner appointed new management and provided financing for urgent works.
The new management of CanBaikal has extensive experience in managing oil companies in Russia. The new management strategy is to increase the value of the Company assets for the shareholders by building a highly efficient and competitive oil production enterprise on the basis of development of the existing license area as well as through acquisition of new reserves.
In 2002 the new management initiated proceedings to develop the oil field. These included workover of existing wells, drilling of new wells, extensive development of the infrastructure, and 3D seismic survey of the license territory.
In the period between 2002 and 2004, ten new exploratory and production wells were drilled (including two directional wells) along with a water well; a 3D seismic survey of 120 km2 and 2D survey of 302 km2 was completed. The Company built a 12.5 km electrical line and a 13.5 km year-round road extending from the existing federal road to Untygei pool. A total of US.1 mln. was invested into development of the Untygei block in 2002-2003 and US.8 mln in 2004.
The Company produced 167 thousand barrels of oil in 2002; 342 thousand barrels in 2003 and 622 thousand barrels in 2004. Revenue for 2004 totaled US.4 mln.
The result of continuous geological studies resulted in change to the previous geological model of the Untygei block of Middle-Upper Jurassic Formation as the main oil bearing horizon. Based on 3D studies, the area of the Kulun pool oil-bearing sandstone decreased while the area of Untygei pool oil-bearing sandstone increased substantially. These 3D studies also provided scientific and technical basis for drilling of the first-priority wells.
In 2005 the Company continued its development program by drilling 4 new production wells. Hydro fracturing in well #105 was done resulting in a two-fold increase of production from the well from 150 to 300 bopd. Production in Kulun field is maintained using 2 injection wells. The pool infrastructure is also being developed: construction of new power lines, reconstruction of the roads were accomplished; the new up-to-date custody transfer station was built to satisfy all requirements from the Russian State Authorities for such type of facilities. Total capital expenditures for 2005 made up US.7 mln with revenue of US.6 mln.
The Company carries out geological research. In 2005 an extensive seismic study was completed. That helped to substantially increase the pool's estimated reserves.
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Headquarters
47 Arbour Vista Way N.W.
Calgary, Alberta
T3G 4R1 Canada
Tel: (403) 264-92-00
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