Strategy
APPLY MODERN NORTH AMERICAN TECHNOLOGY TO EXPLOIT EXISTING RESOURCE BASE DISCOVERED BY OLDER FORMER SOVIET UNION (FSU) TECHNOLOGY
Georgia
- Low risk exploration from shallow oil pool (150 – 1,500 m) wells
- Recomplete & stimulate existing wells to scale up production & build cash flow
- Light oil sold at Brent prices
- Potential for 30+ mbbls of light OOIP [1]
Ukraine
- Repeatable, low cost, high value play - NPV 10% $1.0 million/well
- High gas prices ($8.00/MCF)
- Potential for >1 TCF of resource base
- Room for 2,000 wells using only 50% of land base on 60 acre spacing
- Safeguard assets & reduce overhead expenses until security and safety assured in Eastern Ukraine
Bulgaria
- Material resource with proven gas within Iskander block (1,900 km2)
- Etropole shale may contain 5 - 10 TCF in place
- Significant interest to farm-in from major and intermediate size companies
- Favorable fiscal terms & local government motivated to replace imported Russian gas
- Protect licenses via Standstill Agreement while moratorium on hydraulic stimulation in place
(1) Iskander internal estimate
