Petroneft Resources PLC Drilling Update - C-4 Well (9329Y)
28 August 2018 - 4:01PM
UK Regulatory
TIDMPTR
RNS Number : 9329Y
Petroneft Resources PLC
28 August 2018
PetroNeft Resources plc
28 August 2018
PetroNeft Resources plc ('PetroNeft' or 'the Company')
Drilling Update - C-4 Well
PetroNeft (AIM: PTR) an oil and 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 announce
that it has successfully cored, logged and open-hole tested the
J1-1 and J1-3 intervals of the Cheremshanskoye No.4 (C-4) well in
Licence 67.
Highlights
-- Successful well proves up significant northern half of the
Cheremshanskoye field with oil tested from two horizons at a
combined prorated flow of 399 bfpd, exceeding expectations.
-- The well is the first one drilled with the help of 3D seismic
data acquired by PetroNeft in 2014 and is approximately 5km from
the previous two oil wells which were drilled along the southern
boundary of the field (C-1 & C-3).
-- Result has the potential to increase gross reserves by 40
mmbbls (20 mmbbls net to PetroNeft)
-- Total net pay across both Jurassic intervals is 10.4 m
-- Now moving to secondary J14 objective.
Licence 67
The C-4 well is located on the northern half of the
Cheremshanskoye field in Licence 67. The aim of the well was to
prove up the northern extent of the field based on the 3D seismic
data. The well is being drilled under the joint venture agreement
with our partner for Licence 67, Arawak Energy on a 50:50 basis.
The well spudded on 2 August and operations have progressed
smoothly.
Based on core and log data the base of the Bazhenov Formation
was penetrated at -2,545.5 m TVDSS which is about 9.5 m high to
pre-drill estimates.
The tertiary objective Upper Jurassic J1-1 sandstone interval
encountered 1.6 m of net oil pay from -2,546 to -2,547.6 m TVDSS
and coring recovered oil saturated sandstone with very good visual
reservoir properties. A short duration open-hole test was run over
the interval and the prorated flow was 228 bfpd consisting of 84%
oil (light oil with a density of 0.85 g/cm - 35deg API) and 16%
mud/filtrate. This is a very good initial flow test which exceeds
our expectations for the J1-1 interval.
The primary J1-3 interval was also cored, tested and logged.
Calculations from the log data show net oil pay of 8.8 m from
-2,559.4 to -2,569.2 m TVDSS. A short duration open-hole test was
run over the interval and the prorated flow was 171 bfpd consisting
of 70% oil (light oil with a density of 0.85 g/cm - 35deg API) and
30% mud/filtrate. This is a good flow test which exceeds our
expectations for the J1-3 interval, even though the short flow test
indicates some formation damage that restricted the flow rate.
The combined open-hole tests achieved a prorated test rate of
399 bfpd. The oil cut is expected to increase in a longer test once
drilling fluids are cleared out from the well.
The two open-hole tests combined with the log and core data in
the Upper Jurassic are very encouraging. There are currently no
reserves booked for the Upper Jurassic at Cheremshanskoye and it is
estimated that there could be about 40 million bbls of proven and
probable reserves in the Upper Jurassic at Cheremshanskoye based on
these results, 20 mmbbls net to PetroNeft.
We have now resumed drilling and will next target the secondary
J14 objective in the Lower Jurassic.
Dennis Francis, Chief Executive Officer of PetroNeft Resources
plc, commented:
"We are very pleased with the results of the C-4 well so far as
it has demonstrated the value of the Cheremshanskoye field within
Licence 67. The well demonstrates the importance of the 3D seismic
in being able to confidently select a well location 5km away from
the discovery wells.
Although the open hole tests have been of relatively short
duration, the additional log and core data are very encouraging
with both the J1-1 and J1-3 intervals exceeding pre-drill
estimates.
We look forward to sharing the final results when they are
available."
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
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
+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
API The American Petroleum Institute gravity, or
API gravity, is a measure of how heavy or light
a petroleum liquid is compared to water: if
its API gravity is greater than 10deg, it is
lighter and floats on water; if less than 10deg,
it is heavier and sinks.
bbls Barrels
--------------------------------------------------
Bfpd Barrels of fluid per day
--------------------------------------------------
m metres
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mmbbls Million barrels
--------------------------------------------------
Net oil pay A reservoir or portion of a reservoir that
contains producible hydrocarbons.
--------------------------------------------------
Tertiary Third in priority
--------------------------------------------------
TVDSS True vertical depth subsea
--------------------------------------------------
Spud To commence drilling a well
--------------------------------------------------
End
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END
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