The Peschanoozerskoye field is located on Kolguyev Island in the Barents Sea approximately 150 kilometres from the Northern coastline of Russia. It lies in the Northern Timan Pechora Basin, one of Russia’s most oil rich provinces.

The field is comprised of three blocks, West, Central and East. The Central block is subject to a separate mineral license owned by a state oil company. The West and East blocks comprise Arcticneft’s license area. The West and East blocks are the primary oil-bearing areas of Arcticneft’s license. The areal extent of these blocks is approximately 13 kilometres by eight kilometres. The field is a four-way anticlinal closure with stratigraphic deposits present. The primary producing reservoir is the Charkabozhskaya, a Triassic-age sandstone. A total of nine different reservoirs are present, all of which are producing. The producing horizons range in depth from approximately 1,475 to 1,698 metres. Arcticneft’s crude is a light, sweet oil with a gravity of approximately 47° API (0.79g/cm3) that typically sells at a premium to Brent in international markets. The average sulphur content of the oil is 0.03% and produced water averages are approximately 7%.