Pirkovskoe Licence
The Group has a 97 per cent working interest in the Pirkovskoe licence which holds 2.4 mmboe (2008: 82.4 mmboe) of proved and probable reserves, 5.0 mmboe (2008: 73.0 mmboe) of possible reserves and 134.0 mmboe (2008: 190.6 mmboe) of contingent resources. The exploration and appraisal licence covers 71.6 square kilometres and runs until October 2010.
The required work programme includes work-over of the Pirkovskoe 460 well, and the drilling of Pirkovskoe 1 and Pirkovskoe 2 wells and calculation of the potential hydrocarbon reserves.
Pirkovskoe 1 was the first appraisal well drilled in the northern part of the Pirkovskoe licence. The well was terminated at a TD of 5,723 metres in the Devonian D3 and after testing the Devonian and lower Carboniferous, the well was temporarily suspended. The testing and subsequent completion of several shallower Carboniferous oil and gas bearing zones was farmed out to a local company at no cost to Cadogan, in return for a share of any future production. This interval is currently producing small volumes of oil and gas.
This Pirkovskoe 2 well was drilled to a depth of 4,580 metres, and has been suspended until the results of Pirkovskoe 1 have been reviewed.
Initial well testing of Pirkovskoe 460 was part of the Group’s field development obligations and was completed in December 2007. Test results indicated that poor well integrity was causing water influx from behind casing. As a result the well was producing at lower than anticipated gas rates and as the cost of remediation was prohibitive, the well has been plugged and abandoned.
The Group owns the Kraznozayarska gas treatment plant, on the Pirkovskoe licence area, which is connected to the UkrTransGas system. Its capacity was upgraded in July 2007 to 300,000 cubic metres per day of gas and 150 tonnes per day of condensate in anticipation of future production.
