Alliance Takes Steps into Tomsk Region, Russia with Acquisition

Alliance Oil announced yesterday that it would be taking steps into Tomsk region in Russia with the acquisition of Russian gas company LLC SN-Gazdobycha (SNGD).

Through the acquisition, Alliance, which already has interests in both Russia and Kazakhstan, will take over two licences in the Tomsk region that are currently held by SNGD. The company says the acquisition will boost its total Proved, Probable and Possible hydrocarbon reserves (3P) by 26 per cent, bringing those reserves from 997 million barrels of oil equivalent (mboe) to 1,256 mboe. Proved and Probable (2P) reserves will increase 17 per cent, from 648 mboe to 760 mboe.

The two licences Alliance will acquire have estimated 3P gas reserves of 259 mboe, its statement said, and 2P gas reserves of 112 mboe.

Alliance will acquire 100 per cent of the shares of SNGD at a cost of $128 million. This will be financed from existing cash and debt facilities, the company says. The transaction is expected to be completed by the fourth quarter of 2012.

"This acquisition expands Alliance Oil’s position in the promising Russian gas market and will be integrated into our subsidiary in the Tomsk region to realise both operational synergies and immense exploration potential," Managing Director of Alliance Oil Company, says Arsen Idrisov, said yesterday.

"As we execute our upstream growth strategy, the company’s reserve base is broadening, and gas will increasingly contribute to production, revenue and results in coming years."