worth a look?24 Nov 2008 10:02
Is this worth a punt now that it is back trading?
November 24, 2008
British firm strikes oil in Russia
RIA Novosti reported that a British company has discovered a large oil field in Russia but may lose the development rights as the oil find is classified as strategic by Russian law.
According to the Russian classification system, Timan Oil & Gas estimates the recoverable reserves of the Nizhnechutinskoye field, in the north of European Russia, at 100.1 million and in place reserves at 272.9 million tonnes.
International oil and gas consultant Miller & Lents previously assessed the field, located in the Timan Pechora basin of the Komi Republic, at 191.3 million billion in proved and probable reserves. It is said that a state commission for mineral reserves had approved the revised reserves on July 18th 2008.
However, under Russian law fields containing more than 70 million tonnes in reserves are classified as strategic, which means the government could revoke the British company's license. If this happens, the authorities must provide the foreign company with compensation for the funds invested in the project.
Timan Oil & Gas holds a prospecting and development license for the field through its subsidiary, Neftegazpromtech until 2024.
Mr Troika Dialog analyst Valery Nesterov said that however, the company is unlikely to have its license withdrawn as Nizhnechutinskoye is a complicated site, shallow and extensive, which means costly producti