Operational Update
October 04 2004 - 7:05AM
UK Regulatory
RNS Number:6465D
Nelson Resources Limited
04 October 2004
NELSON RESOURCES LIMITED ANNOUNCES
25% INCREASE IN QUARTERLY PRODUCTION
Toronto, October 4th, 2004 - Nelson Resources Limited (TSX: NLG / AIM: NLG), a
leading independent exploration and production company operating in Kazakhstan,
announces a production update on its four oil fields. Nelson's share of gross
production averaged 19,444 barrels of oil per day (bopd) for third quarter 2004
(Q2: 15,500 bopd / Q3 2003: 9,830 bopd), a year-on-year increase of 98% and a
quarter-on-quarter increase of 25%.
* Kazakhoil Aktobe (KOA) comprises two fields, Alibekmola and Kozhasai, and is
located in the Aktiubinsk Oblast, south of the city of Aktiubinsk. The
Kozhasai field is located 280 km south of Aktiubinsk and is 40 km south west
of Alibekmola. KOA is 50% owned by Nelson.
- Q3 production averaged 23,600 bopd compared to 17,880 for Q2 2004, a
32% increase quarter-on-quarter.
- Combined production from KOA's two fields has maintained levels
consistently over 20,000 bopd since June 1, 2004
- Peak production reached over 25,000 bopd in late September
* North Buzachi oil field is located in the Mangistau Oblast of western
Kazakhstan, approximately 180 kilometres north of the Caspian Sea port of
Aktau. Nelson retains a 50% interest.
- Q3 production increased to 9,320 bopd compared to 7,320 bopd for Q2 0f
2004, 27% increase quarter-on-quarter.
* Karakuduk oil field is located 340 kilometres north east of Aktau. Nelson owns
a net 36% interest in Karakuduk via its 60% shareholding in Chaparral
Resources Inc.
- Q3 estimated production was 8,290 bopd compared to 7,956 bopd for Q2 2004,
a 4% increase. Karakudukmunai JSC, the operator of the field, is pursuing
a program of additional drilling, artificial lift, waterflood and workover
operations to add new producing wells and to stimulate future production
from existing wells.
Nelson President, Baltabek Kuandykov, commented, "Nelson Resources continues one
of the Caspian region's most ambitious field development programs. We have four
drilling rigs and two workover rigs operating in KOA, with a fifth rig being set
up on a new location in the Kozhasai field. KOA's operating wells have doubled
this year from 14 to 29. In North Buzachi, we have moved quickly to act on the
approval of an expanded work program for the field and have two drilling rigs
and three workover rigs working there. Karakudukmunai has one drilling rig and
one workover rig operating. These development programs are resulting in solid
increases in production for the company."
At the end of September 2004, KOA has 28 producing and one injection well, North
Buzachi has 40 producing and 2 injections wells, and Karakudukmunai has 47
producing and 6 injection wells in operation. Construction work is in process on
additional processing facilities at both Alibekmola and North Buzachi fields to
handle increased levels of production.
Nick Zana, Chairman and CEO of Nelson Resources, stated, "I am very pleased by
our strong operational progress. We are also in a period of very high oil prices
that has enabled us to conduct substantial development programs with low
reliance on external financing. With the proceeds of the equity offering and
admission to London's Alternative Investment Market completed in July of this
year, Nelson is in a strong position to pursue its vision for continued growth
and expansion."
For further information contact:
Nelson Resources Limited :
Fred Hodder, CFO Tel: +44 (0)20 7495 8908 / fhodder@nelsonresources.co.uk
S. A. (Al) Sehsuvaroglu, Senior VP Op's Tel. :
+7 3272 58 25 81/2/3 /sas@nelsonresources.com
Investor Relations: (Cavalcanti Hume Funfer Inc. (CHF Inc.)
Olav Svela, Vice President Tel: (1 416) 868 1079
Fax: (1 416) 868 6198 / olav@chfir.com
Cathy Hume, CEO Tel: (1 416) 868-1079 / cathy@chfir.com
If you prefer to receive press releases by e-mail, please contact Meaghan Wright
(meaghan@chfir.com)
Bell Pottinger Corporate & Financial (London)
Ann-marie Wilkinson / Nick Lambert Tel: +44 (0) 20 7861 3232
Notes
Nelson Resources Limited is an oil production and development holding company
with operations in the Republic of Kazakhstan. The Company owns 50% of Kazakhoil
Aktobe LLP (KOA), a 50/50 joint venture between Nelson and KazMunaiGas, the
national oil company of Kazakhstan, which is developing the Alibekmola and
Kozhasai fields. The Company owns a 50% participatory interest in the North
Buzachi oil field located in western Kazakhstan (50% Nelson, 50% CNPC
International (Buzachi) Inc.). In May 2004, Nelson purchased 60% of Chaparral
Resources Inc., which has a 60% interest in the joint stock company
Karakudukmunai, with the remaining 40% being held by KazMunaiGas. The Company
also holds an option to acquire a minimum 25% participatory interest in two
Caspian Sea offshore blocks, Zhambai South and South Zaburunye. Common shares of
Nelson are listed on the Toronto Stock Exchange under the symbol NLG.
Further information on Nelson Resources can be found on the Company's website at
www.nelsonresources.com
The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES. This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the securities of the
Corporation. The securities of the Corporation have not been and will not be
registered under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered or sold
within the United States or to U.S. persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption from such
registration is available.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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