OREANDA-NEWS. Jadran Naftagas has begun drilling exploration well Obudovac-2 near the village of Obudovac, located within the municipality of Samac on the territory of the Republika Srpska, an autonomous region within Bosnia and Herzegovina. Jadran Naftagas is a joint venture between the Serbian company NIS , a subsidiary of Gazprom Neft, and the Russian company NeftegazInKor, a subsidiary of JSC Zarubezhneft . This is the first well that Jadran Naftagas will drill in Republika Srpska under a concession agreement executed in 2011 with the Republika Srpska Ministry of Industry, Electric Power Generation, and Mining for the geological exploration and production of hydrocarbons on the territory of the republic. The spot for the well was determined through interpretation of 2D seismic data obtained in the Republika Srpska in 2011-2012. Naftagas Oilfield Services D.O.O., an oilfield services company and subsidiary of NIS, will perform the drilling operations.

The project includes plans to drill another exploration well in 2013 in the municipality of Bijeljina in eastern Republika Srpska. The results of the drilling will shape the next steps.

Historical seismic data have been reinterpreted and two existing wells have been reactivated and put on pilot production on the territory of Republika Srpska. Additional data have been obtained through seismic studies conducted on the Novi Grad — Doboj line (210 kilometers in length), as well as in the Semberija (516 kilometers) and Posavina (310 kilometers) areas, and also on the Banja Luka — Zvornik (303 kilometers) and Banja Luka — Majevica (100 kilometers) lines. Jadran Naftagas invested approximately USD 13 million in geological exploration in the Republika Srpska in 2011-2012. The studies looked at the geological structure of the territory of the Republika Srpska in order to produce a detailed analysis and the geological model needed to identify the best production areas and to schedule further studies. The results obtained testify to the potential of discovering oil and gas fields on the Republika Srpska territory. Investment in 2013 will reach approximately USD 19.5 million.

The extant seismic data were processed and interpreted at the NIS Naftagas Research and Development Center. The best locations for putting in the first wells have been identified as a result of joint efforts by NIS Naftagas R & D Center, Gazprom Neft and Zarubezhneft experts. The total volume of investment in geological exploration operations in the Republika Srpska in 2014 will reach USD 40.7 million. If commercially significant hydrocarbon reserves are discovered there, at least USD 188 million more will be invested in the project.