Petroneft Resources PLC Operational Update (7739V)
12 August 2015 - 4:00PM
UK Regulatory
TIDMPTR
RNS Number : 7739V
Petroneft Resources PLC
12 August 2015
12 August 2015
PetroNeft Resources plc
("PetroNeft" or the "Group" or the "Company")
Operations Update
PetroNeft (AIM: PTR) an oil & gas exploration and production
company operating in the Tomsk Oblast, Russian Federation, and 50%
owner and operator of Licences 61 and 67 is pleased to provide an
update on operations at Licence 61.
Highlights
West Lineynoye
-- L-10 horizontal well brought online at a sustained rate of 230 bopd.
-- L-10 result confirms short segment horizontal drilling greatly increases flow rates.
Tungolskoye
-- T-503 horizontal well continues to produce at a sustained rate of over 500 bopd.
-- T-502 horizontal segment drilling in progress.
-- T-508 control well and water injector drilled in 17 days.
Production
-- Current gross production from Licence 61 is about 2,600 bopd.
-- Represents a 41% increase in production thus far this year.
West Lineynoye Development
The L-10 well at West Lineynoye was successfully completed with
a horizontal segment of about 282 metres in the Upper Jurassic J1-1
horizon at a depth of approximately -2,365 metres TVD. Of the 282
metre horizontal segment it is estimated that approximately 125
metres is effective net pay. The well was brought online on 4
August and the average flow rate over the last five days has been
approximately 230 bopd. The well has cleaned up substantially and
the current water cut is less than 5%. The adjacent L-8 vertical
well is producing about 50 bopd from the same reservoir interval
and the L-10 confirms the ability to use short segment horizontal
drilling to greatly increase the flow rates.
The L-10 horizontal segment has been drilled with a standard
Russian exploration rig without a top drive unit. Based on the well
design, we are confident that we can effectively drill and
successfully complete horizontal production wells with similar
drilling rigs. There are over 9 locations similar to L-10 that
could be developed in the coming years with one or two well
drilling programmes adjacent to existing infrastructure. The very
good result of L-10, both from a drilling and production
performance perspective, is a significant step to tying in these
close to existing infrastructure projects in a highly cost
effective manner.
Tungolskoye Development
The T-503 well at Tungolskoye continues to produce over 500
bopd. The average water cut has now reduced to less than 5%.
The T-508 vertical well was drilled in just 17 days. The primary
purpose of this well was to provide the necessary stratigraphic
information for the drilling of the T-502 horizontal well which is
in progress. The T-508 well penetrated the top of the J1-1
reservoir at -2,517 m TVD. The reservoir was water bearing in this
location and the well will be completed as a water injector to
provide pressure support for the T-503 and T-502 horizontal wells.
The well has defined the J1-1 water-up-to for the field at around
-2,517 m TVD which is about 5 m higher than previous estimates for
the top oil water transition zone. This is likely to result in a
reserve decrease for Tungolskoye, however, we expect reserve
additions at Arbuzovskoye and Sibkrayevskoye to more than
compensate for this.
The horizontal segment in the T-502 well is currently being
drilled and is expected to be completed later this month. This well
is located on the eastern crest of the structure targeting the J1-1
sandstone using the T-5 and T-508 wells for geo-steering
guidance.
Production
Current gross production at Licence 61 is about 2,600 bopd. This
represents a 41% increase in production thus far this year.
Dennis Francis, Chief Executive Officer of PetroNeft Resources
plc, commented:
"We are very pleased with the L-10 well result, which again
clearly demonstrates the potential for materially enhanced flow
rates from horizontal production wells. This well also demonstrates
that with proper planning, we can drill similar wells in a cost
effective manner with a standard Russian exploration drilling rig.
This significantly increases our inventory of ready to drill wells
in today's low oil price market.
Our operational progress is gathering momentum and this is
evident in our sustained drilling and production growth. We are now
looking forward to the T-502 horizontal well result in the coming
weeks. Production has increased by over 40% in 2015 and we will
continue to focus on production growth."
For further information, contact:
Dennis Francis, CEO, PetroNeft Resources +1 713 988
plc 2500
Paul Dowling, CFO, PetroNeft Resources +353 1 443
plc 3720
John Frain/Brian Garrahy, Davy (NOMAD +353 1 679
and Joint Broker) 6363
Henry Fitzgerald-O'Connor, Canaccord +44 207
Genuity Limited (Joint Broker) 523 8000
Martin Jackson/Shabnam Bashir, Citigate +44 207
Dewe Rogerson 638 9571
Joe Heron / Douglas Keatinge, Murray +353 1 498
Consultants 0300
The information contained in this announcement has been reviewed
and verified by Mr. Dennis Francis, Director and Chief Executive
Officer of PetroNeft, for the purposes of the Guidance Note for
Mining and Oil & Gas Companies issued by the London Stock
Exchange in June 2009. Mr. Francis holds a B.S. Degree in
Geophysical Engineering and a M.S. Degree in Geology from the
Colorado School of Mines. He has also graduated from the Harvard
University Program for Management Development. He is a member of
the American Association of Petroleum Geologists and the Society of
Exploration Geophysicists. He has over 40 years' experience in oil
and gas exploration and development.
Glossary
2P reserves Proved and probable reserves as
defined by the standards of the
Society of Petroleum Engineers
------------ ---------------------------------
bopd Barrels of oil per day
------------ ---------------------------------
TVD True vertical depth
------------ ---------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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