TIDMPTR
RNS Number : 8857I
Petroneft Resources PLC
14 December 2015
14 December 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-501 and T-505 horizontal wells drilled. Logs suggest both
to have better quality oil pay than earlier wells. Workovers in
progress to improve initial flow rates.
-- T-509 vertical injector well drilled. Potential for oil
production before conversion to be tested.
Arbuzovskoye
-- Workover programme to increase production is planned for January 2016.
-- Southern portion development progressing with well pad currently under construction.
-- Significant field reserve upgrade anticipated based on new well and seismic data.
Sibkrayevskoye Reserves
-- Oil in Place estimates upgraded based on new seismic data; 2P reserves expected to increase significantly.
Production
-- Current gross production from Licence 61 is about 2,500 bopd.
-- This represents a 40% increase in production in 2015.
Tungolskoye Development
The T-501 well at Tungolskoye was completed at a depth of
approximately -2,500 metres TVD with a horizontal segment of 997
metres in the Upper Jurassic horizon of which approximately 590
metres is in effective net pay. The log data suggests that the oil
pay is of better quality than that encountered in earlier wells.
After the well was brought online the pressure depleted quickly and
the well could not sustain continuous production. We believe this
to be due to some formation damage in the horizontal section caused
during the drilling process and so performed a workover on the
well, flushing the horizontal segment. Following this, the well
operated continuously at about 190 bopd. However, based on the log
data, we expected the well to be similar to if not better than the
T-503 and T-502 horizontal wells which achieved initial flow rates
of close to 500 bopd. We therefore did an acid bath on the
horizontal segment to further eliminate potential formation damage.
The well is currently cleaning up following this second workover
and will take a few weeks to reach a stabilized rate.
The T-505 well at Tungolskoye has been completed at a depth of
approximately -2,508 metres TVD with a horizontal segment of 466
metres in the Upper Jurassic horizon of which approximately 265
metres is effective net pay. When the well was brought online we
experienced similar flow problems to the T-501 well. The well is
currently being worked over to clean the horizontal section and
flush the well bore, with stabilized production anticipated in
January 2016.
The T-509 vertical injection well has also been drilled. The top
of the J1-1 reservoir was penetrated a depth of -2,517 m TVD. The
well is interpreted to have about 8.1 m of oil + water pay in the
J1-1 and J1-2 intervals. We plan to test these intervals to see if
they will flow oil before making the decision to convert the well
to the water injector planned to provide pressure support for the
T-505 and T-501 horizontal wells.
The drilling programme at Tungolskoye is now complete.
Arbuzovskoye Development
Production from the new wells drilled at Arbuzovskoye earlier
this year has declined more than expected. We believe this is due
to migration of fine particles within the reservoir, partially
plugging the perforations near the well bore. We have experienced
this in the past at Arbuzovskoye and have had very good results by
simply re-perforating wells. We are now planning a batch workover
of these wells in January 2016.
The size of the southern portion of the Arbuzovskoye field has
increased significantly based on the new well and seismic data
acquired earlier this year. Internal calculations indicate that the
current 2P reserves of 6.54 million bbls for Arbuzovskoye are
likely to increase by more than 50% to over 10 million bbls with
the yearend reserves audit. We are now planning the development of
the southern portion of the field which will include a new pad with
4 km pipeline and utility line tie in to Pad 1. We are planning up
to three horizontal wells and one vertical well for the
development. The well pad is currently under construction.
Given the thicker pays and good quality reservoir rock that we
have seen at Arbuzovskoye we are targeting superior results at the
south Arbuzovskoye pad in 2016.
Sibkrayevskoye Status
LLC "Sibneftegeofizika" have completed their seismic and well
data processing and interpretation studies at the Sibkrayevskoye
oil field and have prepared the "Resource Passport" for the field.
This comprehensive document will serve as the basis for the Russian
State (GKZ) Reserve Registration as well as the Company's 2P
reserves. Their estimation for C3 Resources Original Oil-in-Place
(OOIP) is 361.84 million bbls.
The next step in field development will be to convert the C3
Resources into C1+C2 Reserves and have them approved and registered
by GKZ. The Company's 2Preserves will also be recalculated at the
end of the year. The current gross 2P reserves at Sibkrayevskoye
are 53 million bbls and, even allowing for the different
methodologies used in the calculation of reserves, suggests a very
positive upgrade to the reserve level at Sibkrayevskoye.
Production
Current gross production at Licence 61 is about 2,500 bopd.
While an over 40% production uplift in 2015 to date, it is below
our expectations because of the delays in bringing the Tungolskoye
T-501 and T-505 wells into production and the greater than expected
declines from the Arbuzovskoye wells drilled earlier this year. We
are implementing workover programmes designed to address these
issues and expect to see production begin to improve shortly.
Dennis Francis, Chief Executive Officer of PetroNeft Resources
plc, commented:
"We are generally pleased with our ability to drill horizontal
wells at Tungolskoye which will be a key element of optimising
recovery of existing reserves and successful execution of new
developments in Licence 61. While the initial results of the last
two horizontal wells have been disappointing, we believe the
results can be improved at minimal costs with the planned workovers
and acid treatment of the reservoir.
We are now preparing for the development of South Arbuzovskoye
next year with construction of Pad 2 from where we expect better
flow rates from the horizontal wells and good economics, even at
the current low oil prices. 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
----- ---------------------------------------------------
2P Proved and probable reserves according to SPE/PRMS
standards
----- ---------------------------------------------------
C1 Proved reserves according to Russian (GKZ)
standards
----- ---------------------------------------------------
C2 Probable reserves according to Russian (GKZ)
standards
----- ---------------------------------------------------
C3 Possible resources according to Russian (GKZ)
standards
----- ---------------------------------------------------
km kilometres
----- ---------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLGMMMZNFZGKZM
(END) Dow Jones Newswires
December 14, 2015 02:00 ET (07:00 GMT)
Petroneft Resources (LSE:PTR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Petroneft Resources (LSE:PTR)
Historical Stock Chart
From Apr 2023 to Apr 2024