TIDMPTR
RNS Number : 9702H
Petroneft Resources PLC
20 March 2015
20 March 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, is
pleased to provide an update on operations at Licence 61.
Highlights
Tungolskoye
-- Tungolskoye Development drilling contract awarded to Eurasia
Drilling, one of the largest drilling companies in Russia
- Development will consist of up to 11 wells
- Rig mobilization and construction of 25 km oil pipeline and
utility line from Tungolskoye to Lineynoye Central Processing
Facilities is now underway
-- T-5 well temporarily shut-in while exploration rig is
disassembled and pump remedial works completed
Arbuzovskoye
-- Arbuzovskoye 104 well now on production at an initial rate of 100 bopd
-- Arbuzovskoye 107 well has confirmed 3.2 m of net oil pay and
has been put on production at an initial rate of 100 bopd
-- Arbuzovskoye 108 well has confirmed 2.2 m of net oil pay and
will be put on production shortly.
Sibkrayevskoye
-- Sibkrayevskoye No. 373 appraisal well has spudded, result expected in April 2015
-- Acquisition of 1,000 km of high quality 2D seismic underway
Lineynoye
-- L-10 horizontal well to be drilled on the West Lineynoye L-8 structural lobe
Production
-- Current production about 2,000 bopd excluding T-5 well
-- Year-end 2015production from Licence 61 is estimated to be
between 3,500 and 4,000 bopd, based on our current drilling results
and planned 2015 drilling programme
Tungolskoye Development
A contract for the drilling of up to 11 wells, up to five of
which will be horizontal, has been awarded to SGK Drilling, a
subsidiary of Eurasia Drilling, Russia's largest drilling
contractor. SGK will use Schlumberger for measure-while-drilling
and related services for the horizontal segments. A production
drilling rig with top drive unit will be used for these wells,
allowing longer horizontal segments with enhanced control.
Mobilisation of the rig is underway and the first well is expected
to spud in early May 2015.
The construction of a 25 km pipeline and power line to connect
the Tungolskoye field back to the Lineynoye Central Processing
Facility ("CPF") is underway. Over 20 km of pipe has been welded so
far and it is expected that construction will be completed in April
and that commissioning of the pipeline will be completed and in use
by June 2015.
Further to the last update the Tungolskoye No-5 well stabilised
at 415 bfpd on a 10 mm choke. The well was then shut-in for a
pressure build-up test in late February. After the well was brought
back online the cable connecting the Electric Submersible Pump
failed so the well has been temporarily shut-in until the cable can
be replaced. The drilling rig is presently being disassembled and
will be moved out allowing our workover crew to gain access to the
well head to replace the cable. We expect this to take several
weeks. The pressure build-up test indicates the well is capable of
over 400 bfpd based on the productivity index. The well had started
making some water and we were in the process of conducting a
step-rate test to maximize the oil production when the pump
stopped. The well has accomplished its objectives and we have
learned a lot from this well in terms of the planning, execution
and orientation of future development wells and where to best focus
the horizontal segments.
Arbuzovskoye
The Arbuzovskoye 104 well has now been brought into production
at 100 bopd. As mentioned in our previous release logs indicated
that this well contained 5.4 metres of net oil pay. This well was
designed as an eventual water injector in this portion of the field
and we are very pleased with the initial oil production.
The Arbuzovskoye 107 has been drilled and logs indicate that the
well has 3.2 m of net oil pay in the Upper Jurassic J1-1 interval
at a depth of -2,476m TVD. The well has been brought into
production at an initial rate of 100 bopd.
The Arbuzovskoye 108 well has just been drilled and logs
indicate the well has 2.2 m of net oil pay in the Upper Jurassic
J1-1 interval at a depth of -2,476 m TVD. The well will initially
be completed as an oil producer and then later converted to a water
injector in this portion of the field. The well will be put on
production shortly and is the last well to be drilled from Pad 1 at
this time.
The Arbuzovskoye drilling campaign has successfully confirmed
oil in the southern lobe of the structure and the oil-down-to has
been extended to the spill point of the structure. Additional
seismic will be acquired on the field this winter as part of the
1,000 km seismic acquisition programme and we expect to develop the
southern lobe of the structure in 2016 with a combination of
vertical and horizontal wells. We expect good results here based on
the superior reservoir properties that we have at Arbuzovskoye.
This will be a quick tie-in to Arbuzovskoye Pad 1 and the Lineynoye
CPF.
Sibkrayevskoye
The Sibkrayevskoye No. 373 appraisal well is currently being
drilled. It is expected to be completed in late April 2015. The
well is designed to follow-up on the S-372 discovery well and to
further delineate the Sibkrayevskoye oil field. Ryder Scott
estimates the 2P reserves at over 50 mmbbls, making this the
largest oil field discovered on License Block 61 to-date.
Additional seismic data is also being acquired over the structure
this winter as part of the 1,000 km 2D seismic acquisition
programme which is currently underway. A development decision is
expected in Q3 2015 with a view to the field being brought into
production in 2016.
Lineynoye
The Company plans to drill a horizontal well (No. L-10) in the
J1-1 sandstone interval on the West Lineynoye L-8 structural lobe.
The well will be up-dip from the L-8 exploration well which is
currently producing 50 bopd from a vertical section of the J1-1
sandstone. The rig and supplies for this well are currently being
mobilized and it is expected that the well will be spudded in May
2015 and completed in July/August 2015. The well can immediately be
tied-into the Lineynoye CPF.
Production
Current gross production at Licence 61 is about 2,000 bopd,
without T-5. Based on results to date and the drilling programme
for the coming year we expect gross production to almost double and
reach between 3,500 and 4,000 bopd by the end of 2015.
Dennis Francis, Chief Executive Officer of PetroNeft Resources
plc, commented:
"We are delighted with the SGK Drilling contract for the 11 well
campaign at Tungolskoye where we plan a number of longer horizontal
segments.
We are also pleased with our Arbuzovskoye Pad 1 drilling
campaign.. We have achieved excellent results in all of the wells
but we are particularly pleased with the A-103 well, which has
confirmed oil in the southern lobe of the Arbuzovskoye field. This
will be a fast track production project for 2016.
Current production is about 2,000 bopd and based on recent
results, we expect to almost double this figure by the end of the
year."
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
2P reserves Proved and probable reserves as defined by
the standards of the Society of Petroleum Engineers
------------ -----------------------------------------------------
bfpd Barrels of fluid per day
------------ -----------------------------------------------------
bopd Barrels of oil per day
------------ -----------------------------------------------------
m Metres
------------ -----------------------------------------------------
mmbbls Million barrels
------------ -----------------------------------------------------
TVD True vertical depth
------------ -----------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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