Wolf Petroleum, formerly Strzelecki Metals, has signed a production sharing contract for the 23,047-sq km Sukhbaatar exploration block 27, located in and eastern Mongolian region with proven and producing petroleum systems and adjacent to Wolf’s existing BU Block.About 60% of the surface outcrops are Cretaceous aged with a high potential for source reservoir rocks at depth.Historical gravity surveys indicate the presence of a large sub basin with a thickness of up to 3,000 metres and a potential petroleum “source kitchen” has been identified.
Currently, only two Chinese companies are producing and exporting oil on blocks adjacent to Wolf’s Sukhbaatar Block 27 and BU Blocks. Production has increased eleven times over the last five years and the current proven reserves are over 2.4 billion barrels of oil.Wolf plans to carry out an aggressive exploration program to complete its first three years of contract duties within the first year.Wolf is now the largest petroleum exploration block holder in Mongolia.