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SNYDER OIL RUSSIAN VENTURE CLEARED

 FORT WORTH, Texas, Aug. 18 /PRNewswire/ -- Snyder Oil Corporation ("SOCO") (NYSE: SNY) today announced that Permtex, its exploration and development joint venture in Russia, had been registered by the Russian authorities. Registration represents governmental approval of the terms of the joint venture and authorizes Permtex to begin conducting business. SOCO was informed of the registration by its Russian joint venture partner, Permneft. While a number of steps are required before Permtex becomes operational, registration has been the critical element required to move the project forward. SOCO intends to act promptly to secure financing for the joint venture and expects to commence drilling and production within six months.
 The Permtex joint venture holds exploration and development rights to 300,000 acres located in the Volga-Urals Basin, approximately 700 miles east of Moscow. The contract area contains four major and two minor fields as well as a number of high potential prospects. The existing fields, which have been delineated through the drilling of 45 wells, are estimated to contain more than 100 million barrels of proved reserves. None of the fields have been placed on production to date. However, it is believed that 25 of the existing wells will be placed on production in connection with Permtex's anticipated development plan. Based on SOCO's 37-1/2 percent interest in Permtex, the current fields could increase SOCO's proven reserves by almost 50 percent once they become fully operational. It is anticipated that 400 development wells will be drilled by the venture at the rate of approximately 40 wells per year over the next decade. The venture intends to utilize primarily Russian personnel and equipment under joint Russian/American management. Preliminary budgets suggest a gross cost of $270,000 per well, indicating total capital costs of roughly $11 million per year. Once development is underway and the existing wells have been placed on production, further exploration will be initiated.
 Simultaneously, SOCO announced that it had retired $10 million principal amount of its 13-1/2 percent Subordinated Notes. The Notes were reacquired at a premium which will give rise to an extraordinary charge for early retirement of debt of approximately $462,000 on an after-tax basis in the current quarter. With the scheduled retirement of a further $3.75 million of the Notes in November 1993, less than half of the issue will remain outstanding.
 SOCO is engaged in the production, development, acquisition and exploration of oil and gas properties and in natural gas processing and transportation. The company's common and convertible preferred shares are traded on the New York Stock Exchange under the symbols "SNY," "SNY Pr" and "SNY Pr A."
 -0- 8/18/93
 /CONTACT: Patti J. Irwin, vice president of Snyder Oil Corporation, 817-882-5902/
 (SNY)


CO: Snyder Oil Corporation ST: Texas IN: OIL SU:

WB -- NY086 -- 4093 08/18/93 17:22 EDT
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Publication:PR Newswire
Date:Aug 18, 1993
Words:470
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