Petroneft Resources PLC Operations Update (6080Y)
10 September 2015 - 4:01PM
UK Regulatory
TIDMPTR
RNS Number : 6080Y
Petroneft Resources PLC
10 September 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
Tungolskoye
-- T-502 horizontal well brought on line at sustained rate of over 450 bopd.
-- T-503 horizontal well currently producing at around 400 bopd.
-- T-507 control well and water injector spudded on 25 August.
West Lineynoye
-- L-10 horizontal well currently producing at a sustained rate of 130 bopd.
Production
-- Current gross production from Licence 61 is about 2,700 bopd.
-- Represents a 46% increase in production in 2015.
Tungolskoye Development
The T-502 well at Tungolskoye has been successfully completed
with a horizontal segment of 982 metres in the Upper Jurassic J1-1
horizon at a depth of approximately 2,502 metres TVD. Of the 982
metres horizontal segment it is estimated that approximately 624
metres is in effective net pay. The well was brought online on 27
August and the average flow rate over the last eleven days has been
over 450 bopd. The well is still cleaning up, with the water cut
now below 20% and will be allowed to continue in this mode to
monitor performance.
The T-503 well at Tungolskoye is currently producing about 400
bopd. The average water cut is now about 10% and the well is
establishing what we believe to be a long term production
trend.
The T-507 vertical well was spudded on 25 August and drilled to
total depth of 3,262 m in 10 days, a record for a well on Licence
61. The well is currently being logged. The primary purpose of this
well is to provide stratigraphic information for the drilling of
the T-501 horizontal well which will commence shortly. The T-507
well will eventually be used as a water injector to provide
pressure support for the T-502 and T-501 horizontal wells.
Production
Current gross production at Licence 61 is about 2,700 bopd
including 130 bopd from the L-10 well at West Lineynoye. This
represents over 40% production uplift in 2015 to date,
predominantly driven by successful execution of horizontal wells.
Initial decline rates for the horizontal wells are stabilizing and
performance data from the Tungolskoye and West Lineynoye horizontal
wells is being factored into future drilling designs. This will
include a longer planned clean-up and stabiliisation period before
reporting initial well rates.
Dennis Francis, Chief Executive Officer of PetroNeft Resources
plc, commented:
"We are very pleased with the T-502 well result, which is in
line with our expectations and again clearly demonstrates the
potential for materially enhanced flow rates from horizontal
production wells especially when we are able to successfully drill
and complete long horizontal segments.
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-507 vertical well and T-501 horizontal
well results. Production has increased by over 40% in 2015 and we
will continue to focus on production growth."
For further information, contact:
+1 713 988
Dennis Francis, CEO, PetroNeft Resources plc 2500
+353 1 647
Paul Dowling, CFO, PetroNeft Resources plc 0280
John Frain/Brian Garrahy, Davy (NOMAD and Joint +353 1 679
Broker) 6363
Henry Fitzgerald-O'Connor, Canaccord Genuity Limited +44 207 523
(Joint Broker) 8000
+44 207 638
Martin Jackson/Shabnam Bashir, Citigate Dewe Rogerson 9571
+353 1 498
Joe Heron / Douglas Keatinge, Murray 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
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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