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FOR SALE: A RUSSIAN COMPANY which has Oil Leaseholds in the Lower Volga Region of the Russian Federation

BUSINESS OPPORTUNITY OF THE COMPANY
Our Client owns an oil exploration company (the "Company") in the Lower Volga area of Russia, which has two oil exploration licenses, one that covers an area of approximately 12 km2 ("Area A") and a second of 102 km2 ("Area B"). The licensed areas are in an area adjacent to the Caspian Sea with geological trends of reef structures that remained after the pre-historic seas retreated. These licensed areas show very promising geological, seismic results and tests show evidence of significant oil and gas reserves.

COMPANY
The Company was organized in 1998 to explore the region for hydrocarbon deposits. The principals of the Company have excellent knowledge and experience with hydrocarbon geology of the region and good industry and political connections.
The Company received a license for additional exploration (there had been previous exploratory work) in 1999 for Area A and an exploration license in 2000 for Area B. The Company has officially certified the discovery of oil in Area A, which is the last step to obtain a license to exploit the reserves. The licensed areas lie along the east (left) bank of the Volga River, both onshore and offshore. The Company is a privately held, Russian registered company with four shareholders and two subsidiaries.

GEOLOGY
The licensed areas are in a region characterized by reef structures that were left after retreating historic seas. These reef areas collected organic compounds and were later covered by sediments. The hydrocarbons generated appear to have a large reservoir thickness and high pressure, which should produce excellent productivity.
The petroleum exploration of the licenses has focused on Devonian age structures and to a lesser degree Carboniferous age. New seismic data has confirmed more than one trend in the Devonian reefs, which extend under the Volga. These are estimated to have a potential for 43.5 million tons of oil with 19.2 million tons recoverable and 6.8 billion m3 of natural gas of which 3.1 billion m3 are expected to be recoverable. The Carboniferous potential is small by comparison with an estimated 122 thousand tons of oil estimated recoverable (only in Area A). As a reference point, an existing reef deposit 10 kilometers to the south of the Company's license areas produces 870,000 tons of oil per year (17,500 barrels per day).

Four wells have been drilled in the two license areas.

• A well was drilled in 2002 in Area A to a depth of 3,350 meters, which identified oil producing layers at 3,122 meters (1.3 meters thick) and 3,153 meters (9.2 meters thick).
  
• A second well was previously drilled in Area A by another company. This well was purchased by the Company and perforated in the same layers as the first.
  
• A well was drilled in Area B to 3,800 meters that hit the edge of the deposit and identified water-oil contact. Oil was found at 3,227 meters. The well can be further explored through sidetracking.
  
• A second well was drilled in Area B in 2004 to 3,500 meters. A productive layer was discovered at the foot of the well, but rock porosity was very low
  
• Established resources of hydrocarbons available on those oilfields

MARKET AND INFRASTRUCTURE
The region where the Company's licenses are located has produced over 67 million tons of oil and a billion cubic meters of natural gas over the past 55 years. While the west bank of the Volga River in the region has been largely explored, the east bank is less developed. The fastest and the least capital consuming output gain of hydrocarbons in the region is possible in the areas near the banks of the Volga.
The industrial output of oil and gas in the region is now concentrated in the near east bank of the Volga. These areas are characterized by high resource potential, relatively shallow oil and gas deposits, and thorough exploration. Consequently new reserves in these areas can be put into industrial operation within 1-2 years. There is a well developed pipeline and refinery infrastructure in the area.
The region's advantageous geographic location, availability of considerable natural, technical, and scientific resources; and well balanced industrial and agricultural economy make it one of the most developed in Russia.

FINANCIAL INFORMATION
To date, the Company has been engaged in the exploration of its licensed areas and therefore has had no revenues.
The Company will require substantial investments to continue exploration and development of its licenses.

OPPORTUNITY FOR POTENTIAL BUYER
This is an opportunity to acquire an oil company in an area with very good geological exploration information and in a region of Russia with a high level of proven production.
This is an ideal opportunity for an international or Russian oil and gas exploration company to acquire potential new reserves.
This is also an opportunity for a financial investor to purchase an asset for development that has an excellent upside potential in one of the world's most promising sectors and rapidly developing regions.

FURTHER INFORMATION:
If you are interested in buying that business & company in Russia please contact us:
Moscow Trade House in UK
London, UK
Tel/Fax: + 44-20-8201-8869
E-mail: chegeo@globalnet.co.uk

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