Alliance Oil acquires oil license in Timano-Pechora

7/18/2012 2:30 AM EST

Alliance Oil Company Ltd
Company Announcement

Alliance Oil acquires oil license in Timano-Pechora

Alliance Oil Company has signed an agreement to acquire LLC “GeoInvestService”
for 30 million US dollars. LLC “GeoInvestService” holds an exploration license
for the West-Osoveiskoye block in the Timano-Pechora region in Northern Russia.
The license will be integrated into the Company’s Kolvinskoye oil field
operations and development plans. The acquisition is pending Federal
Antimonopoly Service approval. 

The West-Osoveiskoye license block is located on the East side of the
Kolvinskoye oil field and covers an area of 670 square kilometers. At the time
of the license issuance oil resources were estimated at 87.7 million barrels
(12.4 million tons) under Russian reserve classification (D1+D2). The
prospective oil bearing Perm and Devonian formations are located at depths of
2,500-3,900 meters. 

According to the current exploration and development plan, oil production at
the West-Osoveiskoye block can commence in 2014-2015 and be processed and
transported through the Kolvinskoye oil field infrastructure. Additional
seismic studies will be conducted and an exploration well is scheduled to be
drilled in 2012 with the further development of the license area integrated
into the development of the Kolvinskoye field. 

“We continue to increase the Company’s resource base in Timano-Pechora and
extend the reach of the Kolvinskoye field operations. The addition of the
West-Osoveiskoye license block provides opportunities for further reserve and
production growth in the region while realizing synergies with existing
operations”, says Arsen Idrisov, Managing Director of Alliance Oil Company. 



For further information please contact:

Arsen Idrisov, Managing Director, Alliance Oil Company, Tel.: +7 495 777 18 08

Eric Forss, Chairman, Alliance Oil Company, Tel.: +46 8 611 49 90



Also visit www.allianceoilco.com



Alliance Oil Company Ltd is a leading independent oil company with vertically
integrated operations in Russia and Kazakhstan. Alliance Oil has proved and
probable oil reserves of 648 million barrels and downstream operations that
includes the Khabarovsk refinery and the leading network of gas stations and
wholesale oil products terminals in the Russian Far East. Alliance Oil's
depository receipts are traded on the NASDAQ OMX Nordic under the symbol AOIL.