on Demyansky area for geological study aiming at search, exploration and development of hydrocarbon fields located on the southen territory of Tyumen Region.

 Demyansky licensed area is located on the southern part of Tyumen Region in Uvat district.

The preliminary subsoil area borders in the plan are limited by the contour with the following geographical coordinates of its corner points:

 The subsoil area is granted the status of geological allotment without depth limitation for the period of geological study.

The licensed area is located at the junction point of Frolovskaya and Kaimysovskaya oil and gas bearing regions the border of which runs along the Irtysh river. The density of forecast and perspective resources in the north-west of the area (Frolovskaya OGBR) achieves 21-30 ths.t./km², in the south-east (Kaimysovskaya OGBR) - 11-20 thous.t./km². The main perspective targets – Lower-Middle-Upper Jurassic complex, Neocomian deposits of Lower Cretaceous, the oil and gas net thickness achieves (according to the data of the neighboring areas) up to 1300 metres. The deposit depth occurrence is 2000-3300 m, oil flow rates achieve up to 24 m³ /day.

“Demyanskneft” LTD – the license owner provides financing of the work complex on geological study of the subsoil area on account of its own funds including the borrowed ones.

            The license owner has undertook the performance of the following work complex on geological study of the subsoil area:

- to work out, agree upon and approve in accordance with the established procedure the “Programme of exploration and prospect-evaluation works at Demyansky licensed subsoil area”;

- to carry out seismic exploration works 2D and perform not less than 300 linear km of seismic lines;

- to drill three appraisal-evaluation wells and during four years after the field discovery to drill 3 exploration wells performing additional amount of seismic exploration works;

- to evaluate the current background pollution level of the work territory at the subsoil area;

- to work out and agree upon the programme of monitoring of the natural environment and subsoil condition;

-  to start the field operation in the seventh year from the date of the license issue (in the second year after the state expertise of reserves has been performed).

For the present moment the following has been performed:

- “Programme of prospect-evaluation works at Demyansky subsoil area” has been worked out, approved and handed over to FSE “TIF for the Ural Federal District”;

- confirmation of the presence of earlier identified Sredne-Demyanskoye local elevation. For the first time there were Chernoyarskaya, Vostochno-Chernoyarskaya, Chandyshevskaya, Rachevskaya, Centralno-Chernoyarskaya, Vostochno-Rachevskaya structures identified;

- evaluation of the current background pollution level of the work territory at the subsoil area;

- programme of monitoring of the natural environment and subsoil condition has been worked out;

- calculated the reserves on С2 category: geological 1.634 mln.t., recoverable 0.245 mln.t.; resources on С3 category amount to 18.015 mln.t., on Д1l category - 9.931 mln.t.