Workover
The workover of the company’s 7 existing wells have been delayed. This was caused by AOGC’s conversion from AS to ASA, which required that a substantial amount of documentation had to take place, again.

In order to finance the last transaction, AOGC collected 65 million NOK through a convertible loan. Norwegian regulations demand that AOGC had to be converted from AS to ASA in order to execute the loan. This in turn required that AOGC had to legitimate to the Russian sellers and authorities that AOGC ASA was the same company as the previous AOGC AS.

An agreement has been signed with a Russian contractor to workover the company’s 7 existing wells, as well as development of the necessary infrastructure. The workovers will begin immediately. Test production from the overhauled wells is expected to take place during second half of 2007.

Seismic
The 3D seismic which was acquired earlier this year was delivered to a processing company in London in July, where the data will be processed and interpreted. This work is expected to be ready in September, when any possible new structures will be identified. This will be used in a reserves’ upgrade, as well as in the planning of the 2008 drilling program.

Furthermore, AOGC has entered into an agreement with Gaffney, Cline & Associated, a leading analyst company in its field, who will review the processed and interpreted seismic data, in order to produce a certified reserves’ report for the company’s license in Orenburg.

Office facilities
AOGC is in the process to move the office and activities from Samara to Orenburg. This in order to be closer to the field, authorities and contractors/suppliers.

Staff
Several Russians with background from western companies like; Shell, Burren Energy and TNK BP, have been employed in the company’s Russian subsidiary. The staff will continue to be strengthened in the near future.