Premier Energy wants more Russian oil

DALLAS, Nov. 10 (UPI) -- U.S.-based Premier Energy Corp. announced it reached a non-binding agreement with Russia's Rossgaz to continue drilling operations in southwestern Russia.

Premier Energy said it signed a non-binding letter of intent with Rossgaz to purchase the remaining interest of Karbon. Karbon is in the preparatory stages of drilling operations in the North-Kopanskoye oil field in the Orenburg Region in the Volga-Urals Basin.

The oil and gas company owns a majority stake in Karbon currently. It operates in the oil and gas sector at the North-Kopanskoye field.

The field covers more than 3,000 acres of land about 34 miles southeast of the city of Orenburg. Appraisals of the region put the total resource estimate at about 8 million barrels of proven oil reserves with another 21 million barrels in probable reserves.

There is only one producing well in development at the field with a production rate of just 60 barrels per day.

The company warned it must first raise the funds to acquire the remaining stake in Karbon.

"As such, there is no guarantee that Premier will be able to successfully close the above transaction or commence drilling," the company said in a release.