UEN

This is part of an interview 3 years ago by WINNE(already posted earlier on the thread) with Yury V Motovilov who is still at the helm of UENs Petrosakh.

W - "We hear that Sakhalin-6 oil reserves stand at an estimate of 1bn tons, that production should reach 2.5 million tons of crude oil annually, and that you are already investing $12M for seismic survey services. Can you tell us more about Sakhalin-6 and its future prospects?"

Y.M. - "These numbers are correct. The $12 million is only one part of the investment for the seismic survey. We are planning to invest $73 million dollars – before oil extraction. The entire development of the Sakhalin-6 project will involve more than $500 million, although this is an approximate estimate. After the oil is discovered, our next step will be to perform economic evaluation to be able to provide more exact numbers".

W - "I understand that part of oil from Sakhalin-6 will be exported. Are you ready to export, and what are the destinations you are most focused on?"

Y.M. - "Because we receive a license under the terms of commercial risk, we are free to choose whether we want to export the oil or to work with it here – therefore, it will depend on the future circumstances. For now, we have an oil terminal where we can load tankers for up to 40 000 tons, so we have the infrastructure for both production and export. All we have to do is to complete exploration and increase extraction".

W. - "If everything goes as planned, when do you expect first oil?"

Y.M. - "Next year, after the seismic survey is completed, we can start drilling exploratory wells, and if that is successful, we will get oil from our first wells. We believe that our knowledge of the oil field is good enough to arrive at this conclusion, because we know our current oil fields, and we know the structure and geological conditions in the adjacent regions".

which as we know is the here and now!

DYOR.