Epsilon Development Company, the company encorporated in the United States, has discovered a new oil and gas condensate field in southern Uzbekistanб with estimated reserves of about 10 million tons of oil and 7 BCM of gas, as per the findings of prospecting and appraisal drilling, the company said on Tuesday.

In March, Epsilon Development Company and Epsilon Asia Limited (Hong Kong) created a consortium to develop five oil and gas investment blocks in the Bukhara-Khiva and Ferghana oil and gas regions of Uzbekistan. According to IP Epsilon Development Company LLC, a project operator in Uzbekistan, the consortium’s investments in the project in 2019-2023 will top at US$ 5.2 billion.

"On October 29, an industrial flow of hydrocarbons was obtained at well No. 3 of the Eshonkuduk structure, evidencing the discovery of a new oil and gas condensate field," the statement said. According to the company, from an exploratory well located on the Kultak-Kamashi block in the Kashkadarya province, an inflow of up to 30-40 tons of oil and 50 thousand cubic meters of gas per day was obtained.

Epsilon with Uzbekneftegaz’s subsidiaries completed workover of a previously mothballed well using hydraulic fracturing technology, the company said. “As a result, a new field was discovered with estimated reserves of 10 million tons of oil and 7 BCM of natural gas,” Epsilon added.

According to preliminary estimates, the increase in reserves on licensed areas over five years could amount to about 500 BCM of gas (C1 category), 12 million tons of gas condensate (C1) and 8.6 million tons of oil (C1 + C2). According to Epsilon Development Company, at the initial stage, the entire volume will be sold on the domestic market of Uzbekistan. Upon completion of exploration and approval of reserves for each field, a development program will be prepared, with the most suitable development option to be selected.