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Gazprom Neft approves programme to study shale oil reserves in the Bazheno-Abalaksky complex at the Krasnoleninskoye field

Gazprom Neft has approved the continued study of oil reserves at the Bazheno-Abalaksky complex of the Palyanovskaya zone at the Krasnoleninskoye field (which is being developed by Gazpromneft-Khantos ).

The project’s new phase involves drilling four inclined wells to a depth of 2,700-2,800 meters over the next year. Drilling will start by the end of 2013 and be completed by summer 2014.

Gazprom Neft completed tests on the first appraisal well drilled in the Palyanovskaya zone to study the Bazheno-Abalaksky stratum in spring 2013. The well produced an oil flow at a rate of 80 cubic metres per day. Based on these results Gazprom Neft was able to draw up a conceptual model of the field and reserves in the Bazheno-Abalaksky complex as well as plan further development of the site and define locations for the new appraisal and production wells. These will all be relatively close to the existing well.

Results taken from the four new wells will support a more extensive study to determine the feasibility of developing the fields at the Bazheno-Abalaksky complex and help refine the geological model of the layer and its potential output. In autumn 2014 Gazprom Neft will consider whether it should move on to the next stage - drilling commercial production wells on this site.

Vadim Yakovlev, First Deputy CEO of Gazprom Neft, said:

“Gazprom Neft’s strategy to 2025 is to maintain its reserves-to-production ratio at a 20 year level. This means we have to increase our resource base and developing non-traditional reserves, for example, bringing the Bazheno-Abalaksky complex on stream.”

Notes for editors

Shale oil is contained in the Bazhenovskaya, Abalakskaya and Frolovskaya formations in Western Siberia – these have ultra-low porosity but high hydrocarbon content.

2D and 3D seismic work has been carried out in the Palyanovskaya zone. The reserves in the Bazheno-Abalaksky complex were found when drilling 25 appraisal and 10 production wells for conventional oil. Pilot work began in the Palyanovskaya zone in autumn 2012 when five wells were recommissioned. Gazprom Neft then started drilling an appraisal well in the north-eastern part of the Palyanovskaya zone.

Assesing the potential of the Palyanovskaya zone is the Gazprom Neft’s second shale oil exploration project. The Company has experience in this area from its joint venture with Shell (opens in new window)Salym Petroleum Development (opens in new window) (SPD). Specialists at Gazprom Neft, Shell and SPD have produced a road map that defines the stages in the development of the Bazhenov formation of the Verkhne-Salymskoye oil field in the Khanty-Mansiysk Autonomous District.

In April 2013 Gazprom Neft and Shell also signed an agreement to set up a joint venture looking at new projects to explore and develop shale oil reserves in the Khanty-Mansiysk Autonomous District.