It’s Wednesday, October 23, 2013, and we want to introduce you to an Oil play that is our new Wednesday Alert.
Far Vista Petroleum Corp.’s (OTC PINK: FVSTA) is currently at .015 and its business objective is to interact with Russian operators in the oil/gas industry with the goal of building a strong vertically integrated petroleum company based on opportunities available in the Russian Federation.
The company says it will accomplish this by acquiring interests to develop crude oil sites with proven reserves by means of equity investment or joint ventures in oil/gas operations.
Far Vista Petroleum recently announced that its first acquisition is CJSC Chedty Neft.
FVSTA’s President, Maxim Suschenko, said of the acquisition: ”Our main goal is to increase our footprint in this industry, and this proposition may augment shareholders’ value tenfold. We are moving in a much faster rate than expected.”
Earlier this month Far Vista Petroleum reported in a press release, it was informed by Lukoil that it discovered a sizable deposit of oil at the boundary of its territory with Far Vista’s acquisition, and that this oil is common to both areas/companies.
According to the company the oil reserves from this find and aforementioned acquisition are:
“Proved, Developed and Producing” 1,584,000 Barrels having a Value of $166,320,000;
“Proved Undeveloped” 4,134,000 Barrels having a Value of $434,070,000;
“Probable” 10,351,000 Barrels having a Value of $1,086,855,000;
“Possible” 14,201,000 Barrels having a Value of $1,491,105,000.
This find was the result of drilling of well no. 15 on Lukoil’s Lekker field. FVSTA was advised that at a depth of 3,790 meters the well opened a high pressure oil saturated deposit.
Considering the close proximity of Lukoil’s Lekker field with Far Vista’s Chedty field and the fact that they both have a common geomorphology of Lower Devonian and Silurian deposits, the presence of a hydrocarbonic mine of a size no less that 36 square kilometers is highly probable.
The report states that no less than 5 hydrocarbonic mines can be predicted with geological reserves up to 10 million tons.
FVSTA says that an expert committee advised the Board of Far Vista about this high probability of oil reserves in exploring at least 4 new horizons from the Lower Permian to the Lower Devonian discharges in the south-western part of Chedty field.
Lukoil is Russia’s second largest oil producer and is a listed on US Stock Markets and trading at $66.25 at today’s closing.
FVSTA’s Board immediately allocated funding to explore this area for the additional deposits.
The Board’s President said, “This is excellent news from Lukoil as it most certainly indicates additional unknown reserves within our territory. We may possibly envisage a common exploration of this area and a possible joint venture to extract the oil more efficiently and sooner.”
The Subsoil Department of the Komi Republic, the Ministry of Natural Resources, the Department of Nature Control and the Russian Technical Control of the Republic held a joint meeting and approved the present and past steps taken by Far Vista towards protecting the environment as well as employee working conditions.
Consequently, they approved Far Vista’s plan and permitted its technological project for this area to commence in November 2013.
FVSTA’s geologist said that since the company’s neighbor discovered reserves at the very boundary with Far Vista’s territory, it indicates that there remains previously undiscovered additional huge deposits within this territory which were not included in the original evaluation report.
This report of the estimated net oil reserves was completed on its Chedtyiskoye Field by Miller and Lents Ltd, international oil and gas consultants with offices in Houston, Texas.