DirectNeft

DirectNeft

DirectNeft LLC is an oil and gas sector company that carries out hydrocarbon prospecting and exploration in Orenburg Region, Russian Federation.

The Company is currently carrying out intensive prospecting works at Troitskoe deposit, part of Domanikovaya suite. This suite has a rare geological feature: its hydrocarbons are evenly spread throughout its oil and gas-bearing bed across the entire area of the deposit.

Domanikovaya-type deposits are something new and unprecedented for Russia. The State recognised this fact by passing a 2013 law that set forth a subsoil tax deduction for Domanikovaya-type deposits (Federal Law no. 213-FZ).

However, this type of deposits is quite common and well-known in the USA. Thus, by using tested and tried, efficient foreign technology, the Company expects that actual oil extraction figures at this deposit may exceed the initial conservative estimate by several times.

The Company holds a long-term mineral extraction licence valid through 2035 and fulfills all of its licence-specific obligations ahead of schedule.

180 months: the term in which subsoil tax deduction shall be in effect once 1% of recoverable reserves has been extracted

Year end 2017: first commercial oil to be extracted

The Reserve’s geological potential for oil production: 2.5 million tonnes per annum