DGAP-News: TRANSOILGROUP AG : Actually News Letter January 2014 (news with additional features)
DGAP-News: TRANSOILGROUP AG / Key word(s): Interim
Report/Sustainability
TRANSOILGROUP AG : Actually News Letter January 2014 (news with
additional features)
24.01.2014 / 16:16
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Newsletter from the CEO
24 January 2014
Dear shareholder of Transoilgroup AG
I would like to provide you with an update regarding the Visoka oil field:
Whilst in 2012 and 2013 we focused on building the infrastructure and
stabilizing the oil field, our objective in 2014 is to increase production,
reduce costs and improve the infrastructure necessary to support export
sales.
Production
This month we have mandated an outside contractor to begin with the
drilling of 7 horizontal wells . We are confident that these wells will
increase production significantly and that the drilling will provide us
with more data about the oil field properties.
Costs
We started testing the new fluidization system which will reduce the
diluent (solvent) use, the major cost of production. This month we have
reduced the usage of diluent by 50% and, based on additional tests, plan to
reduce diluent use further.
Infrastructure
We began construction, to be completed in July, of 5 tanks which will
provide an additional 9000MT of storage. We will also work with the sea
port authorities to ensure that we have the best structure in place to load
our crude oil onto vessels.
Reserves
The recently completed 'Independent reserves Report of the Visoka Field,
Albania as at 30th September 2013' used the following estimated Bulk Rock
Volume (BRV) and deterministic STOIIP values for calculations:
Parameter Low Best High
BRV(106 m3) 5,127 8,185 11,689
STOIIP (MMstb) 274 601 1,643
The report provides a summary of recoverable oil reserves:
1P: Proven (MMstb) 37.51
2P: Proven + Probable (MMstb) 65.32
3P: Proven + Probable + Possible (MMstb) 119.90
Proven reserves are reserves with a reasonable certainty (normally at least
90% confidence) of being recoverable under existing economic and political
conditions, with existing technology.
Probable reserves are reserves with a 50% confidence level of recovery.
Possible reserves are reserves that have a less likely chance of being
recovered than probable reserves. This term is often used for reserves with
at least a 10% certainty of being produced.
The following table summarizes Net Present Values applicable to
Transoilgroup's 100% working interest in the Visoka oil field discounted at
0% and 10% per year as at 30th September 2013:
Reserves Category Post Tax NPVs (MM$)
0% 10%
1P: Proven 401.17 179.07
2P: Proven + Probable 848.08 347.65
3P: Proven + Probable + Possible 1,717.91 583.21
Off-take agreement
We have signed a seven year off-take agreement with an Italian refinery for
a significant portion of our expected annual production.
Peter Krempin
CEO, Transoilgroup AG
Disclaimer: This Newsletter contains forward-looking statements which are
based on current expectations and certain assumptions of Transoilgroup's
management, and are, therefore, subject to certain risks and uncertainties.
A variety of factors, many of which are beyond Transoilgroup's control,
affect Transoilgroup' operations, performance, business strategy and
results and could cause the actual results, performance or achievements of
Transoilgroup to be materially different from any future results,
performance or achievements that may be expressed or implied in the
forward-looking statements.
Transoilgroup AG * Schönbüelpark 10 * CH-9016 St. Gallen *
Switzerland
phone: +41 71 5440120 * fax: +41 71 5355908 * info@transoilgroup.com
End of Corporate News
+++++
Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=GGXCSXDQLG
Document title: Actually News Letter January 2014
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24.01.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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