OTM International Development Launches Multi-Million Dollar Exploration and Development Program in Crimea

OTM International Development, a Canadian company, has initiated a 25-year, multi-million dollar exploration and development program in the Crimea to extract oil and gas reserves. The program involves the drilling of a 28,000-square-kilometer region, where large oil and gas reserves were discovered during earlier exploration under the former Soviet regime. OTM holds the exclusive rights to explore and develop these resources and aims to prove, increase, and produce the discovered reserves using modern technology.

Key Takeaways:

• OTM International Development plans to drill a 25-year, multi-million dollar exploration and development program in the Crimea, Ukraine, covering a 28,000-square-kilometer region.
• The program includes the development of oil and gas reserves discovered during earlier exploration under the former Soviet regime, with estimated recoverable oil reserves of 12 million barrels in the Aktash Field.
• The Company plans to conduct initial tests for 2-3 weeks before announcing flow rates and reserve estimates, with the aim of bringing the field into full production in the last half of 1995.
• OTM plans to develop nearby shallow field discoveries with estimated recoverable oil reserves of six to eight million barrels based on Ukraine data, raising the potential for the first phase of this project to a total of approximately 18 million barrels of recoverable oil.
• The Company is evaluating several other important oil and gas field discoveries in the region and plans to initiate the development of four fields in the first five years.
• Preliminary plans include the workover of two previously-drilled wells in Fontanov, a gas-condensate field discovery, where both wells flowed in excess of 12 million cubic feet of gas and several hundred barrels of condensate per day.
• OTM's exclusive right to explore, develop, produce, and export these resources comes from a Production Sharing Agreement between Krymgeologia, a Ukraine State Geological Production Enterprise, and OTM's wholly-owned subsidiary, HHO Ltd.

Statistics:

• The 28,000-square-kilometer region in the Crimea, Ukraine, where OTM is exploring and developing oil and gas reserves.
• Estimated 12 million barrels of recoverable oil reserves in the Aktash Field.
• 6 to 8 million barrels of recoverable oil reserves in nearby shallow field discoveries based on Ukraine data.
• C$2.2 million raised through a private offering of common stock and warrants.
• C$65 million to be invested in a five-year exploration and evaluation program by OTM.
• Up to 50% of oil to be taken by OTM for cost recovery under the terms of the Production Sharing Agreement.

Sources:

• Business Wire, "OTM International Development Announces Start of Drilling of First Production Test Well in Crimea," March 7, 1995.
• OTM International Development, (604) 681-4653.