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NOVATEK has expanded its resource base through geological exploration at fields and license areas in close proximity to existing transportation and production infrastructure as well as through acquisition of greenfield projects and fields and license areas in in the most prolific natural gas region in Russia.
The Company continues to efficiently develop its reserve base and increase the ultimate level of hydrocarbon recovery at its fields as a result of our operational experience in the YNAO and by utilizing state-of the-art exploration and development technologies.In 2010, NOVATEK achieved significant growth in its reserves due to a combination of exploration and development work carried out at the Yurkharovskoye field, revisions at the South-Tambeyskoye field, discovery of the Severo-Russkoye field and the strategic acquisition of Sibneftegas and SeverEnergia, which hold licenses for the development of oil and gas condensate fields located in the YNAO and are in close proximity to NOVATEK’s transportation and processing infrastructure as well as the UGSS.
In 2010, NOVATEK achieved significant growth in its reserves due to a combination of exploration and development work carried out at the Yurkharovskoye field, revisions at the South-Tambeyskoye field, discovery of the Severo-Russkoye field and the strategic acquisition of Sibneftegas and SeverEnergia, which hold licenses for the development of oil and gas condensate fields located in the YNAO and are in close proximity to NOVATEK’s transportation and processing infrastructure as well as the UGSS.The Company‘s geologists use a systematic approach to exploration and development of new fields, beginning with the analysis and interpretation of seismic data to the creation of dynamic field models for the placement of exploration and production wells. We employ modern geological and hydrodynamic modeling as well as new well drilling and completion techniques in an attempt to maximize the ultimate recovery of hydrocarbons in a cost effective manner.
As part of the field development process, NOVATEK relies on the experience and expertise of the specialists in its geology department, and the Company’s Scientific and Technical Center, and uses the latest methods and technologies to model and study the geological structure of NOVATEK’s fields and license areas as well as the physical processes of development, production and processing of their hydrocarbons.
The Company‘s geologists use a systematic approach to exploration and development of new fields, beginning with the analysis and interpretation of seismic data to the creation of dynamic field models for the placement of exploration and production wells. We employ modern geological and hydrodynamic modeling as well as new well drilling and completion techniques in an attempt to maximize the ultimate recovery of hydrocarbons in a cost effective manner.
The Company‘s geologists use a systematic approach to exploration and development of new fields, beginning with the analysis and interpretation of seismic data to the creation of dynamic field models for the placement of exploration and production wells. We employ modern geological and hydrodynamic modeling as well as new well drilling and completion techniques in an attempt to maximize the ultimate recovery of hydrocarbons in a cost effective manner.
In 2010, NOVATEK carried out exploration activities at its producing and other fields and license areas located within the territory of the YNAO. Currently, the most prospective of these assets are the South-Tambeyskoye field and the other fields and license areas of Sibneftegas and SeverEnergia.
In 2010,NOVATEK invested approximately RR 2,042 million in exploration activities at consolidated subsidiaries which included 15.2 thousand meters of exploration drilling and the running and processing of 522 square kilometers of 3D seismic and 322 kilometers of 2D seismic.
In 2010, we discovered one gas condensate field at the Severo-Russkiy license area containing five productive formations. Four of these productive formations were discovered as a result of drilling tests and one on the basis of geophysical data. We also discovered the Ukrainsko-Yubileinoye field, which has three gas condensate layers, and is included as part of the Severo-Yamsoveyskiy license area.
In the first nine months of 2011, the cumulative results of our exploration program included 40 thousand meters of exploration drilling and 1,606 square kilometers of three-dimensional seismic. We plan to allocate additional capital to exploratory activities to begin migrating resources to reserves and, to potentially discover new sources of future hydrocarbon production. These exploration activities targeted gas condensate and crude oil bearing Cretaceous and Jurassic deposits at depths of between 2,000 to 4,400 meters.
The exploration activities included exploration drilling at the Yaro-Yakhinskiy, Severo-Russkiy, Yurkharovskiy, North Khancheyskiy, Zapadno-Urengoiskiy and Olimpiyskiy license areas and at the Yarudeyskoye, East-Tarkosalinskoye, South-Tambeyskoye, Samburgskoye and Yurkharovskoye fields. The majority of the seismic data collected was from the Zapadno-Urengoiskiy, Raduzhniy, North Khancheyskiy, Olimpiyskiy, Severo-Termokarstoviy, Pyreiniy, Khadyryakhinskiy, Severo-Chaselskiy and Yaro-Yakhinskiy license areas.
During the 2011 period, we discovered two gas condensate deposits at the Olimpiyskiy license area, one gas condensate deposit at the Yurkharovskoye field, two new gas deposits at the North Khancheyskoye field, two new oil deposits at the East-Tarkosalinskoye field, three new gas condensate deposits at the South-Tambeyskoye field and one gas deposit at Severo-Russkiy license area.
