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January 2006

FOREIGN RELATIONS
Map
Anadyr Basin 1987 drilling
Beringovskii Coal Port (almost year-round, as the sea is nearly ice-free)
Gold mining in Chukotka 1993/2004 Oil and gas in Chukotka 2006
Coal in Anadyr
Bilibino Minerals Ag Au Cu Pt The Chaunsky Rayon unified mining-industrial complex forming
Shmidt Region Gold mining is the largest industrial sector by revenue Iul’tinskii Region is rich in tin tungsten and coal.
Sits On Riches Lives In Poverty 
Bering Sea Space Photo
Russia's OIL AND GAS BEARING BASINS
Continental outskirts 1988
ms  Chukotka Prof  Konstantinovich 
 Phanerozoic Tectonic Evolution of the Chukotka-Arctic Alaska Block:
 Chukotka Geology
Environm against floating nuclear power 
 Oil and Gas Reserves Marketable
 Oil and Gas Basins
Chukotka Autonomous Region
Overview 10 1998
Some Reserve Estimates
 Minerals May 28, 2001
Cretaceous mid-crustal metamorphism exhumation of the Koolen gneiss dome,
Chukotk
a Peninsula
Paleogeography And Basin Development In The Circum-Arctic Region:
Single-Grain U-Pb Dating Of Detrital Zircon Populations From Triassic Sandstones
In Ne Russia And Comparison To Alaska And Can
ada
Cretaceous Deformation Chegitun River Chukotka
http://www.geo.wvu.edu/~jtoro/download/Toro%20et%20al.-Chegitun.pdf
Natal'in, B.A., Amato, J.M., Toro, J., and Wright, J.E., 1999, Paleozoic rocks of northern Chukotka Peninsula, Russian Far East: implications for the tectonics of the Arctic region, Tectonics, v. 18, p. 977-1003. Downloand pdf
Seeking a Positive Commitment
 exploration in difficult Far East basins
Roman Abramovich
Abramovich Canada Visit
 Sibneft, managed by Roman Abramovich
Pet Pot Shallow-areas of Russian Arctic
Geology ONSHORE OIL DEVELOPMENT  Exploration History FEDERAL FUNDS ELIMINATED 
Seismicity of Chukotka
RUSSIAN  EXPLORE FAR EAST Phanerozoic Tectonic Evolution Chukotka-Arctic Alaska Block: Tectonics of NE Russia: Pivotal issues and uncertainties
Volcanism and Exhumation of Okhotsk-Chukotka Research in Chukotka, Russia

K: Koni Mugal volcanic belt; OB: Okhotsk block; OCVB: Okhotsk-Chukotka Volcanic belt; SA: Southern Anui Suture zone


Gold mining in Chukotka from 1993 to 2004

The specific weight of the gold mining has always been playing one of the main roles in the economy of the Chukotsky Autonomous Okrug. The part of gold mining in the regional industry is about 44%.

Starting from the year 1992 and up to the year 2001 the annual total amount of the recovered gold decreased from 15 tons to 5 tons. This trend can be explained by such factors as poor social and economic situation and reformation of the gold mining branch of the industry, as well as this, such factors as primary mineral resources attenuation and gold fields exploitation unfitness were also influential. Since the year 2002 the value of the gold mining is kept on the level 4,4 – 4,9 a year. It is important to notice that the value of the lode gold mining is increasing mainly due to the Valounistoye and Dvoynoye mines exploitation.

Gold mining in Chukotka from 1993 to 2004^
year     1993     1994     1995     1996     1997     1998
kg     13082,5     12489,6     9025,4     9237,6     9121,2     6071,4
year     1999     2000     2001     2002     2003     2004
kg     5107,7     6459,9     6408,8     4828,7     4668,3     4456,0


As analysis of the branch condition shows, stream-gold mining can be done only by comparatively large enterprises with sufficient balance funds. It was reported that by January 1, 2005 there were 156 acting gold reconnaissance/mining licenses handed out on the territory of the Chukotsky Autonomous Okrug (mostly in the stream-gold fields with insignificant resources (average value – 300kg).

There are some possibilities and good preconditions for increasing the level of precious metals mining in the Chukotsky Autonomous Okrug. First of all, it is the presence of the lode gold fields. The government of the Chukotsky Autonomous Okrug pays great attention to the lode gold mining. In the last two years several investors were found for the developing of two large fields: goldsulphide mine Mayskoye and goldsilver mine Koupol, the exploitation of which is considered by the government of the Chukotsky Autonomous Okrug to be the main reason for the gold mining level increase.

On the territory of Mayskoye – one of the richest mines in Russia – the development is performed by the Public Company «Gold Mineral Company «Mayskoye», the affiliate of the structure Highland Gold Mining. On the territory of Koupol mine, which can be classed among the world-wide known facilities, the development is performed by the joint Russia-Canada enterprise Closed Corporation «Chukotka Geologic Mining Company». 25% of the company is a state property, and 75% belongs to the Canadian Enterprise Bema Gold Corp. The license possessors are already finishing preparing the technical and economical foundation, and then the construction of the gold-extract plant is going to start. It is planned to actuate the plants in 2007-2008.

The nearest outlooks for increasing the level of gold mining in the region are also connected with the pickup in mining on the territories of the acting mines «Valounistoye» and «Karalveyem». On the whole, on the territories of the said mines the level of mining (including the stream objects) may be increased up to 30 tons.

Estimated volume of mining:
Characteristics     2005     2006     2007
Gold mining - total, tons     5-5.3     5,3-7,8     9,8-15,3
Silver mining - total, tons     7,2-10     10-30     30-52


The lode gold reserve fund is connected with the reconnaissance and development of the new fields and forts on the territory of the volcanogenic belt «Okhotsko-Chukotsky» (Central and Southern Chukotka). Nowadays there are 6 ledges for geological development on subsoil users’ account. All the ledges are profitable, especially those which are situated in the area of Koupol, Valounistoye and Mayskoye mines.

Paleogeography And Basin Development In The Circum-Arctic Region: Single-Grain U-Pb Dating Of Detrital Zircon Populations From Triassic Sandstones In Ne Russia And Comparison To Alaska And Canada
2004 Denver Annual Meeting (November 7–10, 2004)  Paper No. 6-2   Presentation Time: 8:15 AM-8:30 AM

MILLER, Elizabeth, Geological and Environmental Sciences, Stanford Univ, Stanford, CA 94305-2115, miller@pangea.stanford.edu, GEHRELS, George, Geosciences, Univ of Arizona, Tucson, AZ 85721, AMATO, Jeffrey, Geological Sciences, New Mexico State Univ, MSC 3AB, PO Box 30001, Las Cruces, NM 88003, TORO, Jaime, Depart. of Geology & Geography, West Virginia Univ, 425 White Hall, Morgantown, WV 26506, PROKOPIEV, Andrei, Diamond and Precious Metal Geology Institute, Russian Academy of Sciences, 39 Lenin Avenue, Yakutsk, 677891, Russia, MOORE, Thomas E., U.S. Geol. Survey, MS 901, 345 Middlefield Rd, Menlo Park, CA 94025, GRANTZ, Arthur, US Geol Survey, 345 Middlefield Rd, Menlo Park, CA 94025-3561, and EMBRY, Ashton, Geol Survey of Canada, 3303 - 33rd Street N.W, Calgary, AB T2L 2A7, Canada In order to test and explore alternatives to existing models for the formation of the Amerasian Basin of the Arctic, detrital zircon suites from 12 samples of Triassic sandstone from the Circum Arctic region (100 grains each) were dated by LA-ICPMS.

The Triassic represents the last major phase of deposition in the Arctic region prior to the onset of Jurassic deformation and the beginning of Cretaceous rifting and sea-floor spreading which formed the Amerasian Basin and disrupted the original paleogeography of the region. The samples dated provide key evidence for the reconstruction of continental fragments dispersed during this rifting.

Samples from the Verkhoyansk thrust belt of Eastern Siberia are characterized by strong Permo-Carboniferous (280-320 Ma), and Cambro-Ordovician (439-540 Ma) peaks in the cumulative probability plots. These match ages of granitoid batholiths in the Baikal Mountains along the southern edge of the North Asia craton, and suggest that the immense Carboniferous-Jurassic passive margin sedimentary prism of the Verkhoyansk margin was sourced from the Baikal region with sediments transported by a major river system flowing along the Vilyui rift graben.

Samples from Chukotka, NE Arctic Russia, also show Permo-Carboniferous peaks, as well as younger Permo-Triassic peaks (about 250 Ma). The younger zircons could be derived from silicic magmas erupted during the outpouring of basalt related to Siberian Trap LIP volcanism. Triassic sandstones from Wrangel Island and westernmost Alaska (Lisburne Hills) share both of these zircon age peaks. Samples from further east in Alaska and Canada (Saddlerochit Mountains and Sverdrup Basin) do not.

The current most popular reconstruction of the Arctic Amerasian Basin involves counter-clockwise rotation of Arctic Alaska and Chukotka away from the Canadian Arctic margin. Although this satisfies many constraints for the Alaska portion of the reconstruction, it places Chukotka a great distance away from Siberia, with which is more clearly linked depositionally based on both stratigraphic and detrital zircon data. This discrepancy supports alternative models that involve right-lateral slip of Chukotka from the northern Verkhoyansk along the South Anyui suture and a more complex model for the internal deformation of this part of the Arctic Alaska-Chukotka microplate.   
Research in Chukotka, Russia
Scientists wishing to conduct scientific research in Chukotka (Russia) are now able to call upon BASC for logistical support and for assistance with obtaining all necessary local, regional and federal (Russian) permits for their projects. With the active support of Chukotka’s new Governor, the Honorable Roman Abramovich, and in conjunction with the Chukotka Science Support Group (CSSG), BASC is beginning to offer "one stop shopping" for science support in the Chukotka Autonomous Okrug (equivalent to a state in the U.S.).

CSSG has been formed by two Chukotka-based Native organizations that have provided logistical support to science projects in Chukotka for the past decade. These organizations are the Naukan Production Cooperative (headquarters in Lavrentiya) and the Yupik Eskimo Society (headquarters in Provideniya). CSSG has been formed to work directly with BASC in support of scientific projects in Chukotka. CSSG is funded through BASC's Cooperative Agreement with the National Science Foundation's Office of Polar Programs.

BASC and CSSG are currently facilitating several NSF projects in Chukotka as well as a National Oceanic and Atmospheric Administration (NOAA) research project and an Environmental Protection Agency education project. In 2001, BASC's Executive Director, Glenn W. Sheehan, toured CSSG facilities in Provideniya and Lavrentiya. While in Russia, Dr. Sheehan met with Chukotka Governor Roman Abramovich to discuss planned science activities in Chukotka.

Volcanism and Exhumation of Okhotsk-Chukotka
Arc Revealed by Detrital Fission-Track Ages of  Zircon from the Ukelayet Flysch, Kamchatka

Garver, J.I. * Department of Geology, Olin Center, Union College,
Schenectady, New York, USA,
Brandon, M.T.  Geology and Geophysics, Yale University, New Haven, Connecticut, USA
Soloviev, A.V.,  Inst. of the Lithosphere, RAS, Staromonetny per. 22, Moscow, Russia, 109180
Bullen, M.E. Department of Geology, Olin Center, Union College, Schenectady,
New York, USA, (now at: Exxon, New Orleans, LA)

The Ukelayet Flysch represents forearc strata to the Okhotsk-Chukotka continental arc build on the Eurasian mainland in the NW Pacific in the Cretaceous to Early Tertiary.

The flysch belt is a 10-to-15-km-thick zone of deformed turbidites that rest in the footwall to the Olutorsky collision zone. Fission-track (FT) dating of detrital zircon from sandstones constrain the timing of flysch deposition and exhumation of the source which was a continental arc to the west.
The young populations of fission-track grain ages (P1) defines a FT depositional age, which is the maximum age of unit.

Because all sandstones have colorless, euhedral zircons, ascribed to active volcanism in the source, we infer that the FT depositional age is close to the time of actual deposition. 
FT depositional ages from 27 samples range from 88 (Cenomanian-Campanian) to 44 Ma (Middle Eocene), suggesting over 40 Myr of continuous deposition as the FT peak ages are distributed throughout this entire interval.

The nine youngest samples are Middle Eocene in age suggesting collision and overthrusting of the Olutorsky terrane on the Vatyna thrust must have occurred during or after this time.
In fact, these young FTGA results may actually date the timing of collision because the flysch in the two areas where we obtained Middle Eocene ages, is marked by local but significant occurrences of olistostromes interpreted to be derived from upper plate rocks.

A second population (P2) of grain ages, represents progressive exhumation of the basement to the Okhotsk-Chukotka Arc.

When compared to FT depositional age, P2 gets younger with time suggesting progressive exhumation over 50 Myr at rates of ~120-400 m/Myr. This exhumation was maintained from ~90 to 44 Ma and it resulted in the erosional removal of about 9 to 18 km of crustal material.

The change in exhumation rates at ~70 Ma may represent the shift in the locus of volcanism from the Okhotsk-Chukotka Arc eastward.
Tectonics of NE Russia: Pivotal issues and uncertainties
* Sokolov, S D (sokolov@ginras.ru) ,
Geological Institute, Pyzhevsky 7, Moscow, 119017 Russian Federation

The main feature of the tectonic setup of NE Russia is the existence there of two contrasting tectonic grains: (1) Verkhoyansk-Chukotka orogenic belt (VCOB) with a markedly mosaic tectonic style and predominance of NW trends modified by the "Kolyma loop," and
(2) Koryak-Kamchatka orogenic belt (KKOB), with its typical NE-trending linear features, conformable to the general tectonic grain of the Circum-Pacific foldbelts.

Such sharp contrast in the tectonic grain can be explained as follows: (i) evolution of the VCOB was dominated by collisional processes, whereas, the KKOA provided the stage for accretionary ones;
(ii) the VCOB incorporates terranes with continental crust (microcontinents);
(iii) the paleostructures of the VCOB were separated from the Pacific by a convergent boundary, and their origin was not therefore related to the motions of Pacific plates-as was the case with the terranes of the KKOA.

The time of inception of the convergent boundary between Eurasia and NW Pacific remains poorly constrained.
Reliable reconstructions become feasible starting only from as late as the Late Jurassic.

There are two different approaches on the origin and evolution of South Anyui suture (SAS):
(1) Late Mesozoic rift; and
(2) remnant after the closure of a Pacific re-entrant.
The multiplicity of the viewpoints is due to the insufficient knowledge of the region and, primarily, to the lack of reliable data on (i) the structures of the different segments of the SAS and its northern and southern surroundings; (ii) age of the oceanic fragments; (iii) the tectonic position and geodynamic settings of the ophiolites; (iv) timing of the principal geologic events such as metamorphism, island-arc volcanism, granite emplacement, collision, etc.; (v) depositional environments and clastic sources of the Triassic -Early Cretaceous sediments.

These white spots in our knowledge of the tectonic setup of the Chukotka Peninsula prevent us from adopting or rejecting the popular tectonic model viewing Chukotka as a microplate that split off Canada's Arctic margin to eventually dock onto the North Asian continent.

In the KKOA, the pivotal issue is the original location of terranes, their travel paths, and the timing and mode of their accretion.
This applies to the following terranes: (i) Ganychalan, including Early Paleozoic ophiolites that have no counterparts anywhere in NE Asia and that are likely fragments of oceanic lithosphere of the Pacific, Iapetus, or the Paleo-Asian Ocean; and (ii) the terranes carrying Late Paleozoic limestones and Tethyan faunas. Such units are common within the northern Circum-Pacific accretionary complexes (Cache Creek terrane in British Columbia, Akieshi terrane in Japan, etc.), and they are critical to paleotectonic reconstructions; and (iii) the numerous and diverse island arc terranes with both Tethyan and boreal faunas. It should be investigated which island arc terranes provided convergent boundaries to which plates, and by which Pacific plates these terranes were transported. Supported by the Russian Foundation for Basic Research (project 02-05-64217).
Phanerozoic Tectonic Evolution of the Chukotka-Arctic Alaska Block:
 Problems of the Rotational Model

* Natal'in, B A (natalin@itu.edu.tr) , Istanbul Technical University, Faculty of Mines, Ayazaga, Istanbul, 34469 Turkey

Correlation of tectonostratigraphic units across the Bering Strait suggests that the northern Chukotka including most of the East Siberian Shelf as well as the Brooks Range, Colville Basin, Beaufort Shelf, and Seward Peninsula on the North American side represent a large continental block.
The core of this block consists of the Neoproterozoic Bennett-Barrovia block (BBB) that is overlain by the Ordovician-Devonian Novosibirsk carbonate platform.

The basement of the block is exposed in the Chukotka Peninsula where orthogneiss yielded Late Proterozoic (650 to 550 Ma) U-Pb ages. These dates are comparable with the age of 699 Ma reported for granites in the Wrangel island. Granites of the same age intrude metasedimentary and metavolcanic rocks in the Hammond subterrane in northern Alaska.

In the western part of the BBB, geophysical data imply a presence of a crystalline Precambrian basement at shallow depth beneath the Novosibirsk Archipelago. Weak deformation and consistency of facies of Ordovician-Devonian shelf and lagoon carbonates indicate that the BBB evolved as a rigid structure. A similarity of the Ordovician fossils with Siberia allows an inference about a close location of these two continental entities.

 The BBB forms a backbone of the Chukotka-Alaska block. Since the early Paleozoic, it started to grow at the expense of subduction-accretion.
Ordovician and Silurian oceanic and island arc rocks mark the northern boundary of the BBB. This subduction boundary stopped its development after the late Silurian-early Devonian collision of the BBB and the North America craton. Subduction along the southern boundary of the BBB is recorded by a Devonian-early Carboniferous magmatic arc (granites yielding 360-398 Ma) and an extensional (backarc) basin. Perhaps, this subduction was terminated by a middle Carboniferous collision.

The Triassic extension along the same boundary caused formation of the South Anyui ocean and a wide passive continental margin exposed in the northern Chukotka.

The early Cretaceous closure of the ocean was followed by longitudinal shortening of the Chukotka-Arctic Alaska block as it is evident from orogen-parallel strike-slip faults and oroclinal bending of structural trends.

The Bering Sea orocline accounts for almost double shortening of the original length of the Chukotka-Arctic Alaska block between the Chukotka and Seaward peninsulas. This shortening caused thickening of the crust and its extensional collapse that led to exhumation of metamorphic complexes.

The reviewed tectonic structure and history impose constrains on geometry of the Chukotka-Arctic Alaska block. In many tectonic models, its counterclockwise rotation because of the opening of the Canada Basin and the following collision with the mainland of Asia is considered as the primary mechanism of the Cretaceous orogeny.
However, the present day length of the BBB stretching from the Alaska-Canada border in the east to the Novosibirsk Archipelago in the west contradicts to this simple scenario. The original length of the BBB must be longer if the Cretaceous longitudinal shortening is restored. To overcome the space problem it is suggested that in the late Mesozoic the BBB moved right laterally along the North American margin and that the opening of the Canada Basin is a consequence of this giant strike-slip motion.
GP43C-05 14:40h
Geology of Chukotka, Kolyma and  northern Yakutia

K: Koni Mugal volcanic belt; OB: Okhotsk block; OCVB: Okhotsk-Chukotka Volcanic belt; SA: Southern Anui Suture zone Schematic tectonics of the Magadan-Chukotka area.

Northeast Russia in a geological sense is located east of the Siberian Craton. Politically it comprises the northeastern part of Yakutia, Magadan Obast and Chukotka. The tectonic history of the area is rather complex and not yet fully understood. The main geological units in the area today are the following:

Verkhoyansk fold belt The Verkhoyansk fold belt is located in eastern Yakutia and part of the Magadan oblast. It is situated between the Siberian craton in the west and the Kolyma-Omolon superterrane. The Verkhoyansk fold belt is composed of sediments, deposited along the margins of the Siberian craton. It's age is Mississipian to early cretaceous.

Kolyma-Omolon Superterrane This unit is situated in the central to northern part of the Magadan oblast. The Kolyma-Omolon superterrane is a jigsaw of  several microcontinantal fragments, called blocks. Examples of such blocks are the Omolon block in the southeast and the Prikolyma block just west of the Omolon block, while the Omuliovka block is located more to the southwest. All these blocks are covered by paleozoic to cretaceous sediments. The individual blocks are separated by late Paleozoic to Mesozoic fault and shear zones.

Chukotka terrane The Chukotka terrane is along the northern shore of Chukotka, inlcuding Wrangell Island.

South Anui Suture zone The South Anui suture is located between the Kolyma-Omolon superterrane and the Chukotka terrane. In fact the South Anui Zone is the result of classic collision of continents, as can also be seen in the Urals. In this case the collision between the Siberian continent and the Chukotka terrane. Before the collision there was a rift zone.

Okhotsk-Chukotka volcanic Belt (OCVB) The OCVB is of cretaceous age. The OCVB is situated along the northern shore of the Sea of Okhotsk  and can be followed further northeast all the way to to area of Anadyr at the Bering Strait.  The belt has a length of about 3200km and consist of volcanic and plutonic rocks. In cretaceous times this belt was a subduction zone. Present day Kamchatka and the sea of Okhotsk where pushed northwards and subducted under the exsisting terranes.

Koni-Mugal volcanic belt The Koni-Mugal volcanic belt is situated southeast of Magadan and south of the OCVB.

Okhotsk Block The Okhotsk block is situated southeast of the Verkhoyansk fold belt. It is only a small structure.

references

New 40Ar/39Ar ages of Cretaceous continental volcanics from Central Chukotka: implications for initiation and duration of volcanism within the northern part of the Okhotsk Chukotka Volcanic Belt (northeastern Russia), by V.O. Ispolatov et al, Journal of Geology, october 2003.

South Anyui suture, northeast Arctic Russia:Facts and problems, by S.D. Sokolov et al, Geological Soc. of America Special Paper 360, 2002, pp209-224 StatCounter - Free Web Tracker and Counter
Sibneft Begins Offshore Seismic Work in Chukotka's Anadyr Bay
Sibneft 7/19/2005
URL: http://www.rigzone.com/news/article.asp?a_id=23900
Sibneft has begun carrying out geophysical exploration work on the Tumanskiy license block, located in the Anadyr Bay section of the Bering Sea. The company plans to collect 3000 kilometers of seismic data at the site. The data will shed light on the geology of subsurface structures previously determined to be promising, thereby helping to design a program of exploration drilling on the field for 2006.

Sibneft-Chukotka received a five-year geological exploration license for the Tumanskiy block in November 2003. The block covers about 13,000 square kilometers in water that is 25 to 60 meters in depth. There are five localized structures within the license area, with total geological resources estimated to exceed 1 billion tons of oil equivalent.

Geological work likewise continues at other Sibneft license sites in the Chukotka region. At the Telekaiskoye oil and gas condensate field, testing is underway on a well that, in 2004, produced industrial flows of oil. Sibneft has also built geological models of the offshore portion of the Anadyr oil & gas basin based on drilling and seismic work carried out in the region, identifying several more promising structures.

exploration history
ARCO has signed preliminary agreements with two local governments covering E&P in the Soviet Far East.
ARCO's protocols with regional councils of Magadan and the Chukotka Autonomous Area pave the way for ARCO to negotiate for exclusive rights for onshore and offshore E&D. Target areas will be identified in subsequent negotiations. The councils will help ARCO obtain required legal approvals of the Soviet and Russian Federation governments.
Chukotneftegasgeologia January 12, 1993

In a deal that could lead to a joint venture agreement, IPC and Chukotneftegasgeologia have a joint study agreement covering an area in the Chukotka region. The two will assess the technical and economic feasibility of producing small onshore oil fields in the ANADYR ANDKAHTYRKA BASINS,aimed at yielding exports for western markets.

Crude from the two basins has a high wax content, but it is low in sulfur and the fields are close to the Pacific Coast.

 IPC said depending on results of the study, it could enter a production agreement with Chukotneftegasgeologia in the next 2-5 years.

Cretaceous Deformation Chegitun River Chukotka

FEDERAL FUNDS WILL BE ELIMINATED  March 28, 1994 
Federal funds will be eliminated for oil exploration on the Chukotka Peninsula
RUSSIAN PETROLEUM SLUMP TO EASE SLIGHTLY IN 1994
RUSSIANS TO SEEK EXPLORATION IN DIFFICULT FAR EAST BASINS
 Oil&Gas Journal, June 1, 1998 
 "Where Far East Russia Seismicc Data are Available (Fig. 1 [244,039 bytes])

 Local governments and associations in Russia hope to encourage exploration interest in lightly explored, mostly nonproducing offshore basins in the Far East. Adjacent onshore areas have experienced recurring shortages of natural gas and petroleum products. Russian authorities have been attempting to license blocks in far eastern waters for much of the 1990s, but political, bureaucratic, fiscal, and tax uncertainties have..." 

ONSHORE OIL DEVELOPMENT CHUKOTKA, RUSSIA

An independent oil company is seeking investment to complete final stages of exploration and begin commercial oil and gas production on onshore blocks on Chiukotka Peninsula, Russian Federation.

Project Status: The operator holds two exploration and production licenses, one of which is valid until 2018, the second–until 2021. Operator has completed exploration work, including geophysical surveys and 5 exploratory wells, discovered recoverable oil reserves of 197.8 million barrels (27.1 million metric tonnes), 670 billion cu feet (19 billion cubic meters) of natural gas.

The development plan foresees completing the final stage of exploratory work in 2001-2003, and commencement of early oil production in 2004. Annual production volume is projected at 0.5-0.6 million tonnes of oil and 240 million cu m of gas for the early oil production, reaching a production level of 1.3 million tons per year in the third year of commercial production.

Investment Requirements: Initial required investment is estimated at $28 million-$30 million. Preferred form of investment is acquisition of equity in the operator company and in new investment companies created to finance the project.

To obtain further information about this opportunity, please contact the operator’s authorized agent: