Mongolian oil explorer Wolf Petroleum disclosed Monday an increase to its oil resource estimates with the addition of two new drill ready leads. Both of the new leads are also located on the Companies 100 percent owned Sukhbaatar (SB) block in Mongolia.

Highlights

Two new drill ready leads identified within the Talbulag Basin

Independent prospective resource assessment if the two new drill ready leads estimated Low 171.7 million to High 607.6 million barrels of oil (MMbo)

Wolf now has a total of 7 leads for 1.092 billion on the SB block within the Toson Tolgoi and Talbulag Basins

Targets

UU #1,2,3: 914.6 MMbo (High Estimate), 431.3 MMbo (Best Estimate), 178.5 MMbo (Low Estimate)

TV #1,2: 710.3 MMbo (High Estimate), 329.2 MMbo (Best Estimate), 112.1 MMbo (Low Estimate)

TB #1,2: 607.6 MMbo (High Estimate), 332.2 MMbo (Best Estimate), 171.7 MMbo (Low Estimate)

Totlal: 2,232 MMbo (High Estimate), 1,092 MMbo (Best Estimate), 462.3 MMbo (Low Estimate)

The estimated quantities of petroleum that may potentially be recovered by the application of future development projects (s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of a significant activity of potentially moveable hydrocarbons.

Wolf Petroleum signed a production sharing contract on SB block in January 2013 for up to 39 years of exploration and production. In 2013, the Company successfully completed a two year work program in one year and is now one year ahead of contract commitments.

Comprehensive geological and geophysical exploration programs have identified one of the largest sub basins in Mongolia with over a billion barrels of independently estimated oil.

Geochemical analysis has revealed high quality light oil seeps within the samples, possibly indicating live and active petroleum systems within the basins identified on the SB block.

The Company is currently working towards farming out an interest in the SB block with the aim of drilling identified leads and moving the block towards potential initial production.

Exploration costs are low and existing infrastructure to China provides a ready market for oil discoveries in Mongolia.

A data room is available for potential strategic partners and discussions with interested parties and evaluation of technical data has already commenced.

Source: Rigzone