Petroneft Resources PLC Operational Update (2855I)
01 April 2020 - 5:00PM
UK Regulatory
TIDMPTR
RNS Number : 2855I
Petroneft Resources PLC
01 April 2020
1(st) April 2020
PetroNeft Resources plc ('PetroNeft' or 'the Company')
Operational 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 announce the
commencement of year-round production from the Sibkrayevskoye field
in Licence 61.
Highlights
-- Connection of the Sibkrayevskoye field to the Central
Processing Facility enabling year-round production on Licence
61.
Operations Update
Licence 61
PetroNeft has completed the construction of a 26 km line from
the Sibkrayevskoye field to the Central Processing Facility which
is now operational. This line enables the field to produce all year
round, without the need for expensive trucking.
Production from the Sibkrayevskoye field has historically only
occurred during the winter season when oil could be trucked along
ice roads to the Central Processing Facility at Lineynoye. During
this time production from the two producing wells (S-373 and
S-375s) has averaged 250 - 300 bopd.
In addition to increased production and cash flow, the ability
to produce throughout the year will provide valuable long term
reservoir performance data. This information will be used to
de-risk the forward investment strategy for this attractive
field.
Our technical review last year revealed that the reservoir at
Sibkrayevskoye is a complex channelised system with thick channels
in the J1-2 sands that are producing in wells' S-373 and S-375s.
These types of channels can be visualised on 3D seismic data in
other fields in the region, so future development of this field
will involve acquisition of 3D seismic data which will enable the
company to better target the channel systems. This will reduce the
risks of encountering poor reservoir quality zones in future
development wells. We will be evaluating whether to acquire 3D
seismic data once we have sufficient longer term production data
from the two wells currently producing
Whilst we are very pleased with the completion of this project
on schedule and significantly under budget, we are monitoring the
ongoing turbulence in the energy sector caused by recent declines
in the price of oil, the devaluation of the Russian ruble, combined
with the worldwide effects of the COVID-19 outbreak. We continually
evaluate all possible ways to cut costs, manage or defer capital
projects, while maintaining a safe and secure environment for our
employees in our offices and field operations.
David Sturt, Chief Executive Officer of PetroNeft Resources plc,
commented:
"This is a significant achievement for the company, not only did
we manage to build the pipeline during very challenging operational
conditions, but we also achieved it well within budget.
The performance data from these two wells is going to provide
vital reservoir data which will help to de-risk further capital
allocation to this asset, especially now that we have an improved
understanding of the geology of the field. This investment,
combined with the recent successful re-entry of the c-4 well,
demonstrates the Company's ability to implement low cost but highly
operationally effective solutions to the development and
optimisation of its resource base, despite wider industry
challenges."
For further information, contact:
David Sturt, CEO, PetroNeft Resources plc +971 55 1919 808
John Frain/Brian Garrahy, Davy (NOMAD and
Broker) +353 1 679 6363
Joe Heron /Douglas Keatinge, Murray Consultants +353 1 498 0300
The information contained in this announcement has been reviewed
and verified by Mr. David Sturt, Chief Executive Officer and
Executive Director 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. Sturt holds a B.Sc. Degree in
Earth Sciences from Kingston University and an MSc. in Exploration
Geophysics from The University of Leeds. He is a member of the
Petroleum Exploration Society Great Britain and has over 35 years'
experience in oil and gas exploration and development.
Glossary
bopd Barrels of oil per day
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Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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