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Millennium Energy secures Sakhalin onshore acreage with Westoil partnership

14th October 2014

Millennium Energy Corporation has announced the execution of an agreement for the formation of a joint venture with Westoil LLC, a Russian corporation, on two onshore oil exploration blocks covering 465 square kilometres and 85 square kilometres located on Russia’s Sakhalin Island

Millennium Energy secures Sakhalin onshore acreage with Westoil partnership
Millennium plans to take advantage of the existing Sakhalin infrastructure and pipeline transmission systems that have been developed by consortiums of international oil companies to service they Sakhalin 1 and Sakhalin 2 projects

"We are very pleased to have secured this opportunity for the company and are excited by the immense potential of the Sakhalin region that is well known to host one of the largest hydrocarbon formations in the world, this transaction will undoubtedly greatly enhance the value of the company for the benefit of all shareholders," said Irving Aronson, chairman of Millennium Energy Corp.

The territory of the Vazinski Licence area of 465 square kilometres is located in the Nogliki District of Sakhalin Island.

Local reports have stated that large oil and gas plays lie below the licence area but Millennium plan to commission its own 3D seismic survey and a serious of exploration wells in order to confirm the areas commerciality.

The 85 square kilometres territory of Verhoturovski Licence area is located in the Okha Administrative Region of Sakhalin Island, Federal Republic of Russia.

Local government geological surveys have estimates of oil and gas for the southern region of the licence area at up to 13 million tons of oil and gas equivalent and up to 428 million tons of oil and gas equivalent in the northern region of the license area.

But again Millennium plan to commission its own 3D seismic survey and a serious of exploration wells in order to confirm the areas commerciality.

Millennium plans to take advantage of the existing Sakhalin infrastructure and pipeline transmission systems that have been developed by consortiums of international oil companies to service they Sakhalin 1 and Sakhalin 2 projects.

Russian oil production, currently at 10.55 million barrels per day is one of the world's largest, but sanctions on export of US oil technology could derail future foreign investment in Russia's oil industry.

Russia is home to the largest combined oil and gas reserves in the world.

 

 

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