TIDMPTR
RNS Number : 3860T
Petroneft Resources PLC
06 December 2011
PetroNeft Resources plc
("PetroNeft")
Operations Update
PetroNeft Resources plc (AIM: PTR), the owner and operator of
Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to
announce an update on its operations.
Highlights:
-- 10 well hydraulic fracturing programme completed
o Wells now being brought back online and cleaning-up
o Initial results encouraging
-- Additional five well hydraulic fracturing programme planned
on Pads 1 and 2 in January / February 2012
-- Cheremshanskaya No. 3 well testing progressing successfully
o Lower Jurassic J14 interval achieves natural flow
o Primary Upper Jurassic J1-3 interval may contain 7.0 metres of
net oil pay
-- Arbuzovskoye Development Programme Approved by Russian Government
-- Ledovoye exploration well spudded on 5 December
Licence 61 - Lineynoye Hydraulic fracturing programme
In November 2011 we carried out a hydraulic fracturing programme
using a heli-frac crew on 10 new production wells on Pad 2 at the
Lineynoye oil field. The fracture stimulation programme went
according to schedule and wells are currently being brought into
production. Initial indications are encouraging, however, it will
take several more weeks to bring all of the wells online and allow
them to clean up and achieve a sustainable rate.
Five additional wells, two on Pad 2 and three on Pad 1, will be
fracture stimulated during January and February 2012 when a frac
crew can mobilised to the field by winter road.
Current field production is about 2,500 bopd. Assuming the wells
already brought back online maintain the expected rate of post-frac
clean up achieved and the remaining wells come on at anticipated
rates, production is expected to reach the guided target of 4,000
to 5,000 bopd by the end of Q1 2012.
Licence 61 - Arbuzovskoye Pilot Development Programme
The Pilot Production Design for the Arbuzovskoye oil field was
approved by the Russian State Central Development Committee in
November 2011. Procurement of the long lead items to construct a 10
km pipeline from the Lineynoye facilities to Arbuzovskoye and drill
up to 14 new production wells in 2012 is already underway and
pipeline production is expected to commence in 2H 2012.
Arbuzovskoye contains 2P reserves of 13.2m barrels of oil according
to independent reserve auditors Ryder Scott.
Licence 67 - Cheremshanskaya No. 3 well
Testing of the Lower Jurassic J14 interval which contains 8.6
metres of net pay has been completed. The well flowed naturally to
the surface at a rate of 6 m3/d (38 bfpd), consisting of a light,
high quality, low viscosity oil with an API gravity of 50 degrees,
gas and water. This is understood to be the first natural flow ever
achieved from this Lower Jurassic interval in the Tomsk Oblast.
Sustained production has been achieved from this interval in other
fields in this region following fracture stimulation.
The next phase of testing will focus on the primary Upper
Jurassic J1-3 interval. The initial log interpretation indicated
this interval to be water bearing, however, additional log and core
interpretation indicates that it may contain up to 7.0 metres of
net oil pay. The plan is to isolate the interval from the rest of
the Upper Jurassic interval (J1-1 and J1-2) which have been
interpreted to be oil bearing, and to get an independent test of
the true saturation of this J1-3 interval.
Licence 67 - Ledovaya No. 2a well
The 2a well was spudded on 5 December 2011. The well is
targeting oil in both the Lower Cretaceous and Upper Jurassic
intervals. It is expected that the well will take approximately
four to six weeks to drill to the target depth.
Dennis Francis, Chief Executive Officer of PetroNeft Resources
plc commented:
"We are pleased that the 10-well heli-frac operation at Pad 2 on
the Lineynoye oil field has been completed and that all wells
brought online so far are successfully producing oil while
continuing to clean-up with encouraging initial indications. This,
combined with the approval of the Arbuzovskoye Pilot Production
Project, will ensure the continuation of our production growth in
2012 and beyond.
We are also delighted that testing of Cheremshanskaya has
demonstrated the first natural flow of light oil ever recorded in
the Lower Jurassic interval in the Tomsk Oblast. The focus of the
testing programme now moves to the Upper Jurassic J1-3 interval
where additional studies indicate that the interval may also be oil
bearing."
For further information, contact:
+353 1 443
Dennis Francis, CEO, PetroNeft Resources plc 3720
+353 1 443
Paul Dowling, CFO, PetroNeft Resources plc 3720
John Frain/Brian Garrahy, Davy (NOMAD and Joint +353 1 679
Broker) 6363
Charles Berkeley/Henry Fitzgerald-O'Connor, Canaccord +44 207 050
Genuity Limited (Joint Broker) 6500
+44 207 638
Martin Jackson, Citigate Dewe Rogerson 9571
+353 1 498
Joe Murray/Ed Micheau, 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, Oil and Gas Companies issued by the London Stock Exchange
in March 2006. 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 35 years experience in oil and gas
exploration and development.
Forward Looking Statements
This announcement contains forward-looking statements. These
statements relate to the Company's future prospects, developments
and business strategies. Forward-looking statements are identified
by their use of terms and phrases such as 'believe', 'could',
'envisage', 'potential', 'estimate', 'expect', 'may', 'will' or the
negative of those, variations or comparable expressions, including
references to assumptions.
The forward-looking statements in this announcement are based on
current expectations and are subject to risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied by those statements. These forward-looking
statements speak only as at the date of this announcement. No
statement in this announcement is intended to constitute a profit
forecast or profit estimate for any period.
Glossary
API Gravity The American Petroleum Institute gravity, or API
gravity, is a measure of how heavy or light a petroleum
liquid is compared to water.
bfpd barrels of fluid per day
bopd Barrels of oil per day
km Kilometres
MD Measured depth
mmbbls Million barrels
Spill point The structurally lowest point in a hydrocarbon trap
that can retain hydrocarbons
TVD True vertical depth
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBLBDDBUGBGBU
Petroneft Resources (LSE:PTR)
Historical Stock Chart
From Dec 2024 to Jan 2025
Petroneft Resources (LSE:PTR)
Historical Stock Chart
From Jan 2024 to Jan 2025
