26 Nov 2009 13:27

Alliance Oil may buy properties near existing fields

MOSCOW. Nov 26 (Interfax) - Alliance Oil Company, which is developing hydrocarbon fields in Komi, Tomsk region, the Volga-Urals region and Tatarstan, may purchase properties near its existing operations, board chairman Eric Forss said in a conference call to discuss third quarter results.

In September a Tomsk region official said Alliance was considering acquisition of the oil production assets of Swedish Malka Oil - STS-Service LLC and STS-Management LLC - which own licenses to three fields in Tomsk region: Zapadno-Luginetskoye, Nizhne-Luginetskoye, and Shinginskoye. A source familiar with those negotiations said Alliance was offering $105 million for the assets.

Alliance Oil chief Arsen Idrisov said in a conference call at the end of August that the company might close one or two acquisitions in the upstream segment before year-end.

Malka Oil has 43.6 million barrels of proven and probable reserves and 47 million bbl of potential reserves. The resource under the Russian classification amounts to 23 million bbl of ABC1 and 70.6 million bbl of C2. The company produced 429,500 barrels of oil and gas condensate in the first half of 2009.