Petroneft Resources PLC Operations Update (8036E)
July 21 2016 - 1:00AM
UK Regulatory
TIDMPTR
RNS Number : 8036E
Petroneft Resources PLC
21 July 2016
21 July 2016
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, and 50%
owner and operator of Licences 61 and 67, is pleased to provide an
update on operations at Licence 61.
Highlights
Fourth successful well drilled at South Arbuzovskoye
Further increases to record production levels
Production
-- Current gross production from Licence 61 increased to about
3,700 bopd (1,850 bopd net to PetroNeft)
-- Increase due to new A-216 well at Arbuzovskoye
-- This is a new record high production for the Licence area,
improving further the levels reported at the beginning of the
month
Arbuzovskoye Well A-216 - New Deviated Production Well
-- Two sandstone reservoirs with net pay of 11.4 m identified
-- Initial stabilised production of 175 bopd
Sibkrayevskoye Well S-374 - Vertical Delineation Well
-- Spudded on 3 July
-- Results expected in August
South Arbuzovskoye Development
The Arbuzovskoye well A-216 was spudded on 20 June 2016 and is a
deviated (vertical in the reservoir) production well located to the
south of well A-213. The well was not in the original firm work
programme but has been added based on the successful results of the
A-213, A-214 and A-215 wells. It provides an additional drainage
point on the southern end of the structure and targeted the J1-1
and J1-2 intervals as seen in the A-213 well.
The reservoir interval in the well was cored and the well was
then drilled to a total depth 2,733 m MD and logged. The initial
evaluation indicates that two sandstone reservoirs with total net
pay of 11.4 m have been identified based on log and core
analysis.
-- Upper Jurassic J1-1 (-2,462.4 to -2,465.4 m TVDSS) net pay 3.0 m
-- Upper Jurassic J1-2 (-2,467.7 to -2,476.1 m TVDSS) net pay 8.4 m
The well was perforated in both intervals and the initial
production has now stabilized at around 175 bopd with 15%
water.
A-216 is the final well in the programme at South
Arbuzovskoye.
Production
Current gross production from Licence 61 is about 3,700 bopd
(1,850 bopd net to PetroNeft). This represents a new record
production for the Licence area and arises from the good results of
the four wells at Arbuzovskoye this year. The production thus far
from the new wells at South Arbuzovskoye confirm that while there
is some decline, it is not of the magnitude of decline experienced
at Tungolskoye. This is due to the good reservoir properties and
the thickness of the reservoir at Arbuzovskoye as compared to
Tungolskoye.
Sibkrayevskoye Development
The S-374 delineation well was spudded on 3 July 2016. This is a
delineation well on the southern portion of the field designed to
further de-risk the development and move P3 to P2 reserves. A
result is expected in August 2016. All of the necessary studies and
approvals are being completed in order to commence development of
Sibkrayevskoye in Q1 2017.
Dennis Francis, Chief Executive Officer of PetroNeft Resources
plc, commented:
"We are very pleased with the outcome of the South Arbuzovskoye
development programme which included both deviated and horizontal
wells. We are planning to use a similar approach in the development
of the Sibkrayevskoye field which we are working to sanction for
development in 2017.
In the near term we look forward to completion of the S-374
delineation well at Sibkrayevskoye which will further define the
field and upgrade existing proved and probable reserves. Following
this, our attention is turning to the planning and development work
which will underpin our next drilling campaign."
For further information, contact:
Dennis Francis, CEO, PetroNeft Resources +1 713 988
plc 2500
Paul Dowling, CFO, PetroNeft Resources +353 1 443
plc 3720
John Frain/Brian Garrahy, Davy (NOMAD +353 1 679
and Joint Broker) 6363
Henry Fitzgerald-O'Connor, Canaccord +44 207
Genuity Limited (Joint Broker) 523 8000
Martin Jackson/Shabnam Bashir, Citigate +44 207
Dewe Rogerson 638 9571
Joe Heron / Douglas Keatinge, Murray +353 1 498
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
------------ ---------------------------------
bopd Barrels of oil per day
------------ ---------------------------------
m metres
------------ ---------------------------------
MD Measured depth
------------ ---------------------------------
P2 reserves Probable reserves as defined by
the standards of the Society of
Petroleum Engineers
------------ ---------------------------------
P3 reserves Possible reserves as defined by
the standards of the Society of
Petroleum Engineers
------------ ---------------------------------
TVDSS True vertical depth subsea
------------ ---------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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