Operations - Araca Energy ASA
Araca has ownership in two E&Ps in the Komi Republic of the Russian Federation; OOO Geotechnologia ("GT") and Neftegazopromyslovye Tekhnologii Ltd. (“NGPT”). Both assets have experienced management and operating teams with appropriate funding. Araca has also interests in two offshore blocks in the Caspian Sea in the Republic of Dagestan.
The Timan-Pechora region
GT owns three production licenses, West Ukhtinskoye, Middle Sedyelskoye and Suskinaelskoye, in the Timan-Pechora region of Russia. The Timan-Pechora hydrocarbon basin boasts more than 80 oil and gas discoveries. A main oil pipeline owned by Trasneft crosses the oil field, along with a main gas pipeline. Ukhta railway station is 20 kilometers away from the oil field and roads are passing the field, with several connection points to main roads. Ukhta city is nearby and provides power, water and oil field service supply for the operations.
Middle Sedyelskoye and Suskinaelskoye production licenses contain gas fields, with the former previously being in production with four 700 meter deep wells. The first onshore gas field came on stream in early 2010. The modern facility has the capacity for a daily production rate of 750,000 m3 (4500 bboe). Gas was previously sold directly to Gazprom and a new agreement has been made pending commercial production from the field.
The West Ukhtinskoye license block is located between the well known Yarega heavy oil field (Lukoil) and Chibyu light oil field. The block contains a heavy oil field of the same name with the total resource potential of approximately 8 MMBoe.
NGPT operates the Nizhnechutinskoye field in Timan-Pechora. The field is currently not in commercial production and has 284 MMBOE 2P reserves based on a 2013 CPR. NGPT is planning to initiate commercial production in 2019.
Caspian Sea Region
Through one of its subsidiaries, Araca also has ownership stakes in both the Izerbash (670 km2) and Sulak (610 km2) exploration blocks in the Caspian Sea, Dagestan. Both blocks are under review and assessment for further development.