Petroneft Resources PLC Operational Update (1859G)
16 Marzo 2020 - 01:00AM
UK Regulatory
TIDMPTR
RNS Number : 1859G
Petroneft Resources PLC
16 March 2020
PetroNeft Resources plc
16(th) March 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
successful re-entry of the C-4 well on the Cheremshanskoye field in
Licence 67 and commencement of oil sales for all oil produced from
Licence 67.
Highlights
* Successful re-entering of the C-4 well, flowing
naturally at up to 476 bopd of good quality 100% oil
from the Upper Jurassic J1-1 & J1-3 reservoirs.
* Negotiated attractive long-term oil sales contract
for all oil produced from Licence 67. Approximately
1,200 bbls of oil already sold and transferred to the
refinery. These are the first commercial sales from
Licence 67.
* High value barrels attracting lower MET rate.
* Work over rig now moving from C-4 to the C-3 well on
the southern margin of the Cheremshanskoye field to
test the deeper Jurassic J-14 reservoir.
Operations Update
Licence 67
The C-4 well is located on the northern margin of the
Cheremshanskoye field and was successfully re-entered on the 17(th)
of February; the project was delayed due to the unusually warm
weather delaying construction of the winter road to the well. The
Upper Jurassic J1-1 & J1-3 clastic reservoirs from
2630.8m-2633.8m and 2644m-2655m were re-perforated and tested at
various choke sizes flowing naturally up to a maximum 476 bopd on a
10mm choke. We could only produce on a 10mm choke size for two
hours due to storage tanks becoming full at the well. A previous
longer test on an 8mm choke size produced 290bopd of stabilised
flow. To date the well has produced 100% good quality 35 API oil
with no formation water; a total of 1,200 bbls of oil has already
been trucked.
Eventually we will place an Electric Submersible Pump (ESP) into
the well to enhance production, however with the well flowing above
initial expectations the decision has been taken to let the well
continue to produce naturally at an excellent rate until the winter
roads start breaking up at the end of March/beginning of April. The
expected initial flow rate using an ESP is at least 400 bopd.
The current production information is now being analysed and a
decision will shortly be taken on whether to build an all-season
road to the C-4 well to enable year round production.
In addition to the well testing, the Company has successfully
negotiated an attractive long-term oil sales contract with a local
refinery for all oil produced from Licence 67. This agreement
provides additional certainty in the current volatile market. To
date over 1,200bbls of oil has been sold and delivered to the
refinery.
The workover rig is now being moved from the C-4 to the C-3
well, which is located on the southern part of the Cheremshanskoye
field to test the deeper Jurassic J-14 horizon, and potentially
other productive zones . If this second well re-entry is
successful, then we expect to produce from this well all year round
as it is close to an all season road.
The Cheremshanskoye field reserves of 19.26mmbbls C1+C2 were
approved by GKZ (Russian State Reserves Committee).
Whilst we are experiencing success with our Licence 67 well re
entry program, we are also very conscious of the current turbulence
in the international markets and in particular the significant fall
in the oil price. Fortunately the tax regime for oil companies in
Russia works as a partial hedge against movements in either
direction in the oil price. As prices rise and fall, the tax is
adjusted so that the amount of tax paid as a percentage stays
relatively consistent at about 60% of gross price. Despite this we
will continue to focus on rigorous cost control and continue to
review our capital allocation model to optimize investments .
David Sturt, Chief Executive Officer of PetroNeft Resources plc,
commented:
"We are extremely pleased with the C-4 well re-entry results.
The ability for the well to produce good quality oil from the Upper
Jurassic reservoirs at such rates without the need for a downhole
pump is very encouraging and demonstrates the considerable
potential of this field
In addition to the successful re-entry, the ability to be able
to sign an attractive oil offtake contract at competitive prices
and discounted Mineral Extraction Tax rate applicable to this field
further enhances the value of oil produced from this Licence.
The success of the C-4 well re-entry has demonstrated that
carefully chosen, relatively low level investment can add value to
our portfolio. We believe Licence 67 contains significant immediate
and long term upside potential and look forward to working with
partners to continue to unlock this value"
We are now looking forward to the testing of the C-3 well."
For further information, contact:
+971 55 1919
David Sturt, CEO, PetroNeft Resources plc 808
+353 1 679
John Frain/Brian Garrahy, Davy (NOMAD and Broker) 6363
+353 1 498
Joe Heron / Douglas Keatinge, Murray Consultants 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
bbls Barrels
bbls/day Barrels per day
------------------------------------------------------
bopd Barrels of oil per day
------------------------------------------------------
mmbbls Million barrels
------------------------------------------------------
ESP Electric Submersible Pump
------------------------------------------------------
C1 + C2 Russian State Reserves C1 + C2, equivalent
to 2P (Proven and Probable)
------------------------------------------------------
2P Proven and Probable reserves under the Society
of Petroleum Engineers Petroleum Reserves Management
System
------------------------------------------------------
MET Mineral Extraction Tax
------------------------------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDGPUMCWUPUGWA
(END) Dow Jones Newswires
March 16, 2020 03:00 ET (07:00 GMT)
Petroneft Resources (LSE:PTR)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Petroneft Resources (LSE:PTR)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024