ZAAB ENERGY AG
ZAAB Energy AG identifies hydrocarbon resources by drilling works
ZAAB ENERGY AG / Miscellaneous Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Munich, 2 October 2007. ZAAB Energy AG is a Munich based independent oil and gas exploration and pre-production company which expects to start up its oil production in the near future. ZAAB Energy’s Russian subsidiary ZAAB Invest holds a license portfolio to five areas located in the Russian Federation between Black and Caspian Sea with significant oil and gas resources. Drilling in the South-Yermolinskiy license area By 28 September 2007 approximately 2,720 meters of drilling had been completed at ZAAB Invest’s South-Yermolinskiy license area which is located in the Republic of Kalmykia of the Russian Federation. The presence of hydrocarbon resources was confirmed by well logs in three different layers. Gas was identified in approximately 875 to 900 meters as well as 2,193 to 2,201 meters and oil was identified at a depth of approximately 2,580 meters. The gas deposit at a depth of approximately 900 meters is currently estimated by ZAAB Invest on the basis of seismic data and well logs to have a total gas amount of approximately 5 million barrels of oil equivalent. The gas reservoir at a depth of approximately 2,200 meters was tested to have an estimated total amount of gas of almost 3 million barrels of oil equivalent and a daily production rate of more than 200 cubic meters. The drilling will now progress further to a depth of 2,900 meters where further hydrocarbons may be located. Once the drilling works are completed additional appraisal work will assist ZAAB Invest in determining priorities for bringing the field into production. ZAAB Invest provided all drilling results (including core samples) to independent geological institutes who will perform their analysis. The well is the first drilled by ZAAB Invest in the South-Yermolinskiy license area and unexpectedly during the drilling works extremely high pressure was encountered at a depth of 2,400-2,600 meters. Whereas so far ZAAB Invest had estimated to be able to complete the drilling to a depth of approximately 2,900 meters as early as September of this year it now expects that the drilling can be completed until November 2007. Such delays are not unusual for first-time drillings in a new license area. Professor Gennadiy Shilov, ZAAB Invest’s Chief Geologist, stated: 'Notwithstanding the high pressure during the drilling we could prove that we can implement drilling works successfully. In addition, our first well already identified the existence of hydrocarbons in the South-Yermolinskiy license area.' Geological work in other license areas ZAAB Invest further continued its geological work in its other fields. In particular, 200 line kilometres of 2D seismic works have been completed on the Yevseevskiy field and ZAAB Invest has, therefore, already fulfilled the licence requirements on seismic works for this field. Currently a subsidiary of Rosneft is preparing proposals for drilling works at the Vyselkovsko-Kubanskiy field. Drilling is expected to start in this field in the first half of 2008. Signature of cooperation agreement with the Krasnodar regional government In September 2007 ZAAB Invest signed a cooperation agreement with the Krasnodar regional government represented by the Vice Governor Vladimir Chepel. Pursuant to this agreement ZAAB Invest will assist the regional government in organizing social programs in the Krasnodar region such as sports, cultural or environmental events. The regional government will be of help to ZAAB Invest with administrative issues related to the operation of ZAAB Invest’s fields in the Krasnodar region such as the processing of governmental approvals. Two of ZAAB Invest’s fields, the Rudevskiy and the Yevseevskiy field, are located in the Krasnodar region and it is, therefore, welcome that close ties could be established with the regional government. Board of directors Jan-Hendrik Röver, Member of the Board, tel.: +49 89 242 246 910 02.10.2007 Financial News transmitted by DGAP ----------------------------------------------------------------------
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