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Hitt og þetta 14. september 2006

Svenska Capital Oil AB to participate in development of oil fields in Ukraine

Nordic Business Report-September 14, 2006-Svenska Capital Oil AB to participate in development of oil fields in Ukraine
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The Swedish oil exploration and production company Svenska Capital Oil AB (Capital Oil) said on Wednesday (13 September) that it has signed a preliminary cooperation agreement with Ukrainian state-owned company Bogorodchanynaftygas.

The agreement covers the joint development and production of a series of shallow oil fields in western Ukraine.

The oil fields have proven recoverable oil reserves of at least 9m barrels, in addition to which Capital Oil has identified probable recoverable reserves of at least 30m barrels of oil.

Capital Oil said that it expects to reach a daily production of up to 2,000 barrels by 2010.

Capital Oil on Wednesday also announced an agreement to take over Swedish oil trading company Sadkora Energy AB's share of the Ukrainian project.

The transaction will be carried out as an all-shares deal in which Sadkora Energy becomes the largest shareholder of Capital Oil with a 41.65% holding.

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