The new results of the processing of the 3D seismic survey along with the results from the K-3 well and data collected previously confirm the principles of geology and high potential of the oil field discovered with the K-3 well. At the same time, the new data makes it possible to locate the optimal place for a K-4 well which will be drilled within the framework of the farm-out agreement with TOTAL.

The processing of the integrated seismic and geological and geophysical data acquired in the K-3 well was carried out with the use of state-of-the-art software supporting geological analysis of hydrocarbon deposits. The works were supervised by a team of Total experts from the scientific centre in Pau (France). Works carried out by PGS were conducted under the annex to the OTG Contract dated 21 October 2010, issued by the Ministry of Oil and Gas of the Republic of Kazakhstan. Pursuant to the annex, the exploration works were extended by 5 years in order to evaluate the discovery of the Koblandy field, on which the Company informed the public in report No 84/2010 dated 22 October 2010. The evaluation of the discovery should be understood as carrying out additional seismic and drilling works on the basis of which the reserves of the field, as well as the optimal way of its development will be estimated.
The Koblandy field is located in the northern part of the North Caspian Basin in the Republic of Kazakhstan. Between 2008 and 2009, in order to analyse the oil and gas potential of the area, Petrolinvest drilled the Koblandy-3 well of the depth of 6,737 m. Under the deposits of salt and anhydrites, the well was drilled through 600 metres of carbonates of sub-salt layers of the Lower Permian, Carboniferous and Devonian. While drilling through those layers, shows of oil and high gas readings in the drilling mud were observed. According to the logs carried out in the well, the thickness of the sub-salt gas or oil bearing pay dolomites is approx. 524 m. During the works, several horizons were selected for testing. While testing, during the period of several weeks, natural gas flows were observed, along with the presence of light crude oil of very good quality, of light green colour and the density of 0.780 g/cm3. When gas was being flared, there was no hydrogen sulphide detected in the gas.
The Koblandy field was discovered with the K-3 well approximately two years ago but technical problems which appeared during the testing did not allow McDaniel&Associates, an independent expert, to classify its resources as higher than prospective. Currently, owing to seismic data of much higher quality and all earlier results, the positive evaluation of the field in the Koblandy structure is confirmed and chances of reclassifying the resources of the field to a higher category are considerably higher.
The prospective resources in the Koblandy structure were estimated by McDaniel&Associates, an independent expert, at 801.4 million barrels of crude oil equivalent.

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