The Company currently has significant exploration and development acreage. The Company intends to generate revenue by developing its current fields and putting them into production and to contain costs in the exploration, development and production of gas on its current licence areas by retaining contractors appropriate to the complexity of the project. For example, PGK is negotiating to enter into turn-key contracts with international contractors with extensive experience of managing the exploration and appraisal of complex reservoirs such as Karpenskiy sub-salt structures, while GNS will engage local contractors to exploit less technically demanding fields such as those found in the Vostochny-Makarovskoye Licence Area.
The Company intends to utilise management’s local knowledge and experience to identify, acquire and exploit undervalued gas assets in Russia. Acquisitions of licences will be pursued on an opportunistic basis, whether through government auctions, such as the recently acquired Urozhainoye-2 Licence, or through corporate acquisitions, if the Company believes such assets are undervalued, create synergies with existing assets or can yield greater value through the application of the latest technology.
Optimise Access to Markets
The Company intends to focus on ensuring that produced gas will have the most effective route to end-customers at the highest possible netback sales price. To achieve this, the Company has focused on acquiring licence areas where it believes that it can readily access the UGSS operated by Gazprom, as well as serve local demand.
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