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Saga Oil ASA SAGA Oil continues progress in its Russian oil venture in Orenburg region. The positive drilling results this spring will lead to a revised reserve potential in addition to the March acquisition of significant new, prospective acreage in Orenburg.
The new well #107 has penetrated a previously non-confirmed part of the Tournaisian formation. The well data have proven that the water-oil contact is 5 meters lower than previously assumed by 3D seismic. This is a significant discovery as a lower water oil contact result in thicker production zone for the northern Tournaisian block. It also confirms increasing the total thickness of the best Tournaisian production zone to be 24 meters in the dome section.
Well #107 was originally dedicated to be the first injection well on East Shaltinsky, but it will now be prepared for re-classification to production well and will be put on-stream as soon as practically possible.
This latest discovery will also change the resource base and development plan as the potential of the northern Tournaisian block has increased.
Malvin Hoeydal, President and CEO of SAGA Oil ASA comments: "The last discovery proves that the Rodnikovsky license continues to show new potentials and it will add to the resource base of SAGA. The actual increase of resources in the northern block will be published when the new oil water correlation data have been used in 3D seismic re-simulation of the field."
Operational update follows shortly.
For further information, please contact: SAGA Oil ASA - CEO Mr. Malvin Høydal, cell: +47 97422959, email: malvin.hoeydal@sagaoil.no SAGA Oil ASA - CFO Mr. Lasse Fjell, cell: +47 93249339, email: lf@sagaoil.no SAGA Oil ASA - Investor Relations Mr. Stein Are Valdal, cell: +47 97 50 99 82, email: sav@sagaoil.no
About SAGA Oil ASA
SAGA Oil ASA was established in October 2005 to focus on exploration, development and production of oil and gas assets in Russia and the FSU. The company's founder has more than 20 years of business experience in the Soviet Union and Russia. SAGA Oil currently holds two production licenses in Orenburg region through its Russian subsidiary. The company started production from the first license in 2007, and it will gradually build up its production during 2008 and will start developing its new acreage. SAGA Oil has it's headquarter in Stavanger, Norway, and has around 80 employees in Norway and Russia. The company's shares are listed at the OTC market (Over the Counter-List) in Oslo, Norway.
