Petroneft Resources PLC Drilling Update (7035G)
08 November 2018 - 6:01PM
UK Regulatory
TIDMPTR
RNS Number : 7035G
Petroneft Resources PLC
08 November 2018
PetroNeft Resources plc
8 November 2018
PetroNeft Resources plc ('PetroNeft' or 'the Company')
Drilling Update - Results of C-4 Well Upgraded
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 cased-hole testing of the J1-1 and J1-3 intervals of the
Cheremshanskoye No.4 (C-4) well in Licence 67 has confirmed the
excellent results from the open-hole testing reported on 28
August.
Highlights
-- Excellent results of open-hole testing confirmed and upgraded
by extensive cased-hole test of the J1-1 and J1-3 intervals. The
well productivity from the cased-hole test indicates that the
combined intervals should achieve in excess of 450 bopd when
produced on an electric submersible pump.
-- The C-4 well proves up the northern half of the
Cheremshanskoye field with oil tested from two horizons.
-- The well is the first one drilled with the help of 3D seismic
data acquired by PetroNeft in 2014 and is approximately 5km from
two previous oil wells which were drilled along the southern
boundary of the field (C-1 & C-3 wells).
-- Result has the potential to increase gross reserves by 40
mmbbls (20 mmbbls net to PetroNeft)
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 was 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 results of the open-hole testing
were reported on 28 September. An extensive cased-hole testing
programme has since been conducted for the J1-1 and J1-3
intervals.
Cased-hole test no. 1 of the J1-3 interval was conducted on the
perforated interval from 2,644 - 2,655 m MD. The interval was step
tested on different choke sizes and pressure regimes. The final
natural oil flow rate on a 3 mm choke was 11.1 m3/day (70 bopd).
The productivity index is calculated at 0.22 m3/day/atm which
translates to about 277 bopd at 200 atm drawdown (typical drawdown
expected for an electrical submersible pump).
We then isolated the J1-3 interval from the J1-1 interval and
conducted cased-hole test no. 2. The J1-1 interval was perforated
from 2,631 to 2,634 m MD. The interval was step tested at different
choke sizes and pressure regimes. The final test on a 5 mm choke
had a natural oil flow rate of 17.4 m3/day (109 bopd). The
productivity index is calculated at 0.15 m3/day/atm which
translates to about 189 bopd at 200 atm drawdown.
Assuming the well is completed with just an electrical
submersible pump we would expect the combined flow rate of the two
intervals to be in excess of 450 bopd. This compares to the
combined open-hole prorated test result of 399 bfpd.
The two cased-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 is
the Company estimate 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).
The Company is in the process of getting the reserves approved
by the State Reserve Committee (GKZ) and reviewing the options for
producing the C-4 well on long term test production this winter
when the oil can be trucked on winter roads.
Dennis Francis, Chief Executive Officer of PetroNeft Resources
plc, commented:
"We are very pleased to report that extensive cased-hole testing
of the C-4 well has confirmed and upgraded the encouraging initial
short-term open-hole test results. The test data confirms
Cheremshanskoye as a significant oil discovery within Licence 67
with good reservoir properties and excellent flow rates.
As outlined in the H1-2018 results, in order to enhance
shareholder value the Company has engaged financial advisers in
Russia to test the market and gauge appetite for a potential sale
of Licence 61. While we are only in the early stages of this
process for L-61, we have seen a high level of interest from a
range of well-financed industry players.
Given the good result of the C-4 well, we would now expect a
similar high level of interest in Licence 67. The good result of
the C-4 well clearly expands the Company's options for returning
value to shareholders."
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
--------------------------------------------------
bopd Barrels of oil per day
--------------------------------------------------
m metres
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MD Measured depth from the rig floor
--------------------------------------------------
mmbbls Million barrels
--------------------------------------------------
Net oil pay A reservoir or portion of a reservoir that
contains producible hydrocarbons.
--------------------------------------------------
Spud To commence drilling a well
--------------------------------------------------
End
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END
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