December oil production and 2006 Capital program -production planned to double in 2006
West Siberian Resources Ltd’s oil production during December 2005 amounted to 449,284 barrels, or 14,493 barrels per day. In December 2004, oil production averaged 4,850 barrels per day. Total oil production in 2005 tripled to 2,976,312 barrels from 988,000 barrels in 2004.
During the month, oil was produced from five fields in the Tomsk and Timano-Pechora regions. At Middle Nyurola, in the Tomsk region, the new wells number 115 and 121 were put on production. In the Timano Pechora region, a new producing oil well, number 1002, was put into operation in the Middle Kharyaga field. 43% of the oil production in 2005, or 1,274,443 barrels, was produced in the fourth quarter when production increased from 434,903 barrels in 2004.
West Siberian plans capital expenditures of USD 63 million in 2006, excluding acquisitions. These plans include drilling and development programs at the Middle Nyurola-, Kluchevskoye- and Khvoinoye fields in the the Tomsk region, where 12 new wells are planned. In the Timano Pechora region, 7 wells are planned at the Middle Kharyaga field. Production from these fields is planned to double to 5,9 million in 2006.
The capital program also includes development of the recently acquired license areas in the Timano Pechora region. Drilling is expected to commence in the fourth quarter 2006. Based on current development plans, West Siberian’s objective remains to reach total daily production rates exceeding 30,000 barrels in 2007.
“Strong operating performance in the last quarter of 2005 contributed to further improvements in financial performance. We have an ambitious plan for 2006 and expect another year of high growth.” Maxim Barski, West Siberian’s Managing Director stated in a comment.
West Siberian Resources issues monthly oil production reports on the 3rd business day of the month.
For further information:
Maxim Barski, Managing director, West Siberian Resources Ltd., tel. +7 095 723 07 18
Eric Forss, Chairman, West Siberian Resources Ltd., tel. +46 8 613 00 85
Also visit www.westsiberian.com