The first well on Tyub-Karagan has not given hydrocarbons - LUKOIL (expanded version)

/INTERFAX-KAZAKHSTAN, Almaty, August 3, 05/ - The first prospecting well on Tyub-Karagan area has been liquidated, press-release of LUKOIL Overseas says. "According to results of researches in the well oil and gas containing collectors and objects have not been revealed", - the message says. Russia's side incurs all expenses on this project. Founders of Tyub-Karagan Operating Company B.V. the contractual area operator are KazMunayTeniz (50%) and LUKOIL Overseas (50%). Grigory Volchyok press-secretary of LUKOIL Overseas says the next step will be comparison of information received according to results of the first well drilling and seismic made before. "On the basis of these researches there will be made decision about making further actions on this area exploration", - he said. Answering the question whether the partners will drill the second prospecting well Volchyok said: "There are rather many principles of exploration, and drilling is just one of the ways". LUKOIL-Shelf acted as a contractor on drilling works. Drilling was started on April 30 of this year. "The prospecting well reached the projected depth and let get detailed data about geological structure of the pit and much materials (stippler, sludge) for researches. The well has fulfilled its geological purpose and has been liquidated", - the release says. Tyub-Karagan project is developed on production sharing agreement (PSA) terms made for 40 years. In January of 2004 LUKOIL and KazMunayGas signed an agreement, in accordance with which the Russia's company got a 50% market share in PSA on Tyub-Karagan area. Size of Tyub-Karagan exceeds 1.3 th. sq km. Forecasted geological resources of the area are estimated at 324 m. tons of oil, maximum annual output is possible on the level of 7 m. tons. [2005-08-03]