TriNorth Capital announced that it has earned 50% ownership in a newly formed company, which through its subsidiaries owns a 100% interest in the Erbogachen and Kirensk oil and gas concessions in Eastern Russia. The two concessions are in the same geological area as the Kovykta discovery that is being developed by GazProm and TNK-BP and are in close proximity to the “East Siberia – Pacific Ocean” 2,500 mile pipeline project that will supply oil to China, Japan and India. The pipeline capacity will be 1.5mm barrels per day. The pipeline will cross the Kirensk site and is 200km from the Erbogachen site.
Preliminary consent for land allotment for the purposes of geological surveying, prospecting and hydrocarbon production has been obtained for both concessions.
It is currently the intention to engage in exploration and development work on these two concessions and it is anticipated that TriNorth will make an equity investment in the project to fund this development., The preliminary planning for the exploration project will be based on the results of a computerized interpretation of Soviet-era archive data on these concessions that is currently underway and expected to be completed in 2008. The majority of the exploration work, consisting of seismic and electrometric surveys and deep exploration drilling, will take place from 2008 through 2010.
