LOCATION - On the border of the Samara and Orenburg Oblasts in the Volga Urals Basin, one of Russia's oldest and most prolific oil and gas provinces
RESERVES - Proved and probable reserves of 66.7 mmbbl (9.3mmtons) and an additional 20.5 mmbbl (2.8mmtons) of reserves currently classified as possible, for a total of 87.2 mmbbl (12.1mmtons), audited SPE.
Hillwood was one of the first U.S. companies to be involved with Russia through its subsidiary, BaiTex, a 100% foreign-owned Russian oil company that acquired 100% ownership of its production assets and associated production facilities.
BaiTex was established in April 1995 as a Russian limited liability company owned 50:50 by Hillwood, and Orenburgneft, a Russian oil company ("OBN"). The field was operated by BaiTex, which, in turn, was managed by Hillwood and its affiliates. OBN was later acquired by Tyumen Oil Co ("TNK") one of the emerging major Russian oil companies.
Beginning in the mid 90's, Hillwood, through BaiTex, commenced rejuvenation of this field discovered in 1948 utilising:
- Horizontal drilling (including the first horizontal well in Volga Urals Basin
- Modern reservoir management technologies
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Optimisation of existing wells and
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Radial drilling
Production increased 80% as a result of these efforts.