Petrogrand AB is pleased to report an operational update
Exploration work
The construction of the winter roads have progressed according to plan and mobilisation of the drilling equipment have begun. Some of the equipment has already reached the drilling location (see updated pictures on webpage). We don't see any reason to change the spud dates that was given in our third quarterly report, which means that the first well is expected to spud second half of February. As earlier communicated, two wells will be drilled in the Nizhnepaninsky licence area and one well in the Muromsky-2 licence area.
During 2012 the estimated cost for these three wells is MRUB 500 (MSEK 115). The three planned exploration wells during the year will be well covered by our liquidity which amounted to MSEK 527 at the end of Q3 2011.
Seismic
We have also decided to shoot around 350 line kilometres additional seismic on Muromsky-2 licence area during first half of 2012. Estimated cost will be around MRUB 65 (MSEK 15).
For further information, please contact:
Maks Grinfeld, CEO, phone: +46 8 5000 7810
Sven-Erik Zachrisson, Chairman, phone: +46 8 41 05 45 96
Certified Adviser First North: Mangold Fondkommission AB
Reasonable caution notice: The statement and assumptions made in the company's information regarding Petrogrand AB's ("Petrogrand") current plans, prognoses, strategies, concepts and other statements that are not historical facts are estimations or "forward looking statements" concerning Petrogrand's future activities. Such future estimations comprise but are not limited to statements that include words such as "may occur", "concerning", "plans", "expects", "estimates", "believes", "evaluates", "prognosticates" or similar expressions. Such expressions reflect the management of Petrogrand's expectations and assumptions made on the basis of information available at that time.
These statements and assumptions are subject to a large number of risks and uncertainties. These, in their turn, comprise but are not limited to i) changes in the financial, legal and political environment of the countries in which Petrogrand conducts business, ii) changes in the available geological information concerning the company's projects in operation, iii) Petrogrand's capacity to continuously guarantee sufficient financing to perform their activities as a "going concern", iv) the success of all participants in the group, or of the various interested companies, joint ventures or secondary alliances, v) changes in currency exchange rates, in particular those relating to the RUR/USD rate. Due to the background of the many risks and uncertainties that exist for any oil-prospecting venture and oil production company in its initial stage, Petrogrand's actual future development may significantly deviate from that indicated in the company's informative statements.