16 Sep 2013 07:00
16 September 2013
Ruspetro plc ("Ruspetro" or the "Company")
Tight Oil Technology Partnership with Schlumberger ("SLB")
London, 16 September 2013: Ruspetro plc (LSE: RPO) today announces that the Company has signed a technical partnership agreement with Schlumberger (NYSE:SLB), the world's leading oilfield services company, to advance its field development plan and drill a number of horizontal, multistage fractured wells using best-in-class tight oil technology and technical expertise.
The technical partnership covers the following areas:
· Subsurface review and field development plan
· Design and implementation of horizontal multistage fractured wells
· Bazhenov shale delineation
Subsurface Review and Field Development Plan
The Schlumberger team will work alongside Ruspetro's technical team in our Moscow offices to high grade current and future drilling locations for appraisal and development wells. Additional subsurface work aimed at increasing resolution and predictability in our subsurface model will allow us to upgrade Ruspetro's field development plan and gain a better understanding of production variability.
Design and Implementation of Horizontal Multistage Fractured Wells
Initial appraisal drilling will include detailed logging and coring of the Jurassic and Bazhenov zones to better refine and resolve the geological model. The partnership will enable Ruspetro to benefit from Schlumberger's knowledge and experience of tight oil best practices from around the world, including horizontal wells, multistage fracture completions and joint supervision of operations. Schlumberger's remuneration is directly linked to production results.
Bazhenov Shale Delineation
Ruspetro's 300,000 acre Bazhenov shale formation will benefit from 100% relief from Russia's Mineral Extraction Tax. Whilst the main focus of the technical partnership is to maximize productivity from the Company's Jurassic reserves, the Bazhenov shale layer will also be cored and logged as a basis for the future development of this formation.
Tom Reed, Acting Chief Executive Officer, commented:
"Schlumberger are recognized as one of the leading companies in the world in tight oil field development. We expect this partnership to give Ruspetro the technical tools and sub-surface understanding required to maximize production rates, expected ultimate recovery of oil and, therefore, investment efficiency per well. Furthermore, the work will result in an improved, know-how driven field development plan for Ruspetro, benefitting from global technology and using best practices for tight oil production.
Having stabilized our financial position this summer, we consider this partnership a critical next-step towards the profitable and measured development of our field."
Future Announcements
The Company's third quarter interim management statement will be released on 7 November 2013.
Enquiries
Investors / analyst enquiries
Dominic Manley, Ruspetro
+44 207 318 1265 / +44 7540 460 872
Twitter: @ruspetroplc
Media
Natalia Erikssen - FTI Consulting
+44 207 831 3113
About Ruspetro
Ruspetro plc is an independent oil & gas development and production company, listed on the premium segment of the London Stock Exchange (LSE: RPO). The Company's operations are located on three contiguous licence blocks in the middle of the Krasnoleninsk Arch in Western Siberia. Ruspetro assets include proved and probable (2P) reserves of over 1.8 billion barrels of oil equivalent.