Forus Capital LLC Invest in Russia

The project data
A. The Project of exploration and extraction of hydrocarbon raw materials in the license site: Dmitrievsky License Site, Kurgan Region, Russian Federation
B. The exploration license terms: 20.02.2014 – 20.02.2019 (possibility of prolongation).
C. Production license: will be received in the second stage of the project, after evaluating the deposit and registration of the extracted reserves of the hydrocarbon raw material in the State Committee for Reserves of the Russian Federation. According to the plans of the project it is the end of 2018.
D. The amount of investment for the first stage of the project: 15.000.000€ (minimum plan: 1 exploration well); 25.000.000 € (maximum plan: 3 exploration wells).
The period of the first stage of 2-3 years. Repeated detailed seismic, electrical exploration, drilling 1-3 exploratory wells to a depth of 3,500 meters, estimation of hydrocarbon raw material deposits and registration in the State Committee for Reserves of the Russian Federation, the preparation of a bankable feasibility study on the second stage of the project by international experts.
E. The amount of the investment of the second stage of the project: 180,000,000 €. The period of the second stage: Investments - 2 years, 6 years of reinvestments. Drilling of 152 industrial wells. On average, it is assumed for drilling 21 wells annually within 7 years.
F. Extraction of hydrocarbon raw materials: is possibly to begin at the end of 3d -4th year from the start of investment in exploration and construction of infrastructure. Annual production is increasing and then decreasing flow. In the stage of full development of the project the 6th -7th years of the second stage, it is possible to have average annual production of 2.0-3.5 million tonnes per year. Period of production: 20 years or more, if the production will be effective. Total production: 38.345 million tonnes of crude oil.
G. The payback period for the second stage is 6 years, it will depend on the initial extraction of hydrocarbon raw materials. Projected production rate of the wells is more than 100 tonnes / day / well, and more.
H. Products: crude oil, allegedly heavy (according to the results of emission electrical exploration RALF-1, heavy Biomarkers C19-C32 are predicted), that means that it is an oil with average content of wax, low sulfur, analogue of White Tiger Field in Vietnam, because the projected productive horizons are in the same cavernous structures of granite gneisses, crystalline basement, on the horizon of 2800-3200 meters.
I. The Project may suggest the construction of a medium-sized refinery of processing capacity 400-500 thousand tonnes of oil per year. It will require additional investment or reinvestment of the profits of the project.
J. Eequivalent of the produced hydrocarbon raw materials in 20 years: 9.317 billion €, the prices of oil: 243 €/tonne. The project is designed under the condition of supply of the oil to the domestic market of the Russian Federation. Export and processing of crude oil at the refinery were not considered in financial calculations of the project because we need to drill a hole and receive the analysis and the oil quality.
K. The net accumulated undistributed profits in 20 years: around 2.503 billion €.
L. Dividend to shareholder for 20 years: about 2.484 billion €.
M. Summarized net profit project: about 4.97 billion €.
N. Accumulated depreciation of Permanent assets: 423.601.303 € (fixed assets).
Calculations of the project have been made by the forecast method and require clarification after the preparation of a detailed bankable feasibility study at the end of the first stage of the project.