RIA Novosti reported that Alliance Oil, an independent oil company with operations in Russia and Kazakhstan has signed USD 128 million deal to acquire 100% of the shares in the West Siberian gas company SN Gazdobycha.

Alliance Oil said that SNGD has two gas licenses in the Tomsk region which facilitate synergies with Alliance Oil’s regional operations. The gas company has proved and probable gas reserves estimated at 112 million barrels of oil equivalent and proved probable and possible reserves at 259 million barrels of oil equivalent. Gas production is scheduled to commence in the H1 of 2013.

The company said that through the acquisition, the company's total hydrocarbon reserves will increase by 26% from 997 million barrels of oil equivalent to 1,256 million barrels of oil equivalent. 2P reserves will increase by 17% to 760 million barrels of oil equivalent.

Alliance expects to finance the transaction with existing cash and loans. Alliance produced 17.9 million barrels of oil in 2011, 12% more than in 2010.

Source - RIA Novosti

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