Petroneft Resources PLC Operational Update (0164X)
25 Agosto 2020 - 01:00AM
UK Regulatory
TIDMPTR
RNS Number : 0164X
Petroneft Resources PLC
25 August 2020
PetroNeft Resources plc
25(th) August 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
improved production.
Highlights
-- Licence 61
o Production up year on year by 7.8%, to 1,589 bbls/day July
2020, currently averaging 17% above July 2019 levels.
o Strong performance from the Lineynoye field with production
over 20% ahead of July 2019 levels.
o Sibkrayevskoye field continues to perform well with production
currently averaging 246 bbls/day.
o Improvement in local market conditions.
Production has increased year on year at Licence 61 due to a
combination of optimising the waterflood program at the Lineynoye
field and placing the Sibkrayevskoye field into year-round
production.
In 2019 the company allocated capital and resources to a
low-cost data gathering program across our fields. The first data
acquired was on the Lineynoye field. This data has improved our
understanding of the field, which has enabled us to implement
improvements in the water flood program at Pad 1, during Q1 2020.
We believe we are now seeing the positive results of these
adjustments. An additional well was converted into an injector
during Q2 2020. We will continue to closely monitor the field
performance and are looking at the potential to carry out further
well interventions.
The Sibkrayevskoye field continues to produce at approximately
246 bbls/day without any material decline. The robust performance
of the two wells is providing increased confidence in the forward
potential development of the field. We are currently looking at
ways to increase production further during the next winter season
(2020/21) through either hydraulic fracturing or further well
re-entries. We hope to be able to update shareholders on these
plans as the year progresses and once our detailed review is
complete.
Following our success at Lineynoye, we have now begun to focus
on the Arbuzovskoye field where over the last two years we have
observed a significant decline in the production rate at PAD 2,
particularly the A-214 HZ well. Following evaluation of the
reservoir data gathered through last year, we have taken the
decision to convert one vertical well to an injector and another to
a water source well during the first quarter of this year. We are
currently monitoring performance at this location and will provide
an update within the next few weeks.
The global oil price drop in March 2020, which further weakened
in April, had an immediate effect on the Russian domestic market
where Petroneft sells its produced oil. Starting from May we have
seen domestic oil prices starting to recover and by June they had
returned to near pre-crisis levels.
David Sturt, CEO PetroNeft commented:
"It is extremely encouraging to be able to begin seeing the
benefits of the field optimisation programs which started last year
with extensive but low-cost data gathering across our well
portfolio. This data led approach allows to achieve greater returns
from our investments. Being able to stabilze and even increase
production without deploying significant capital to expensive
drilling is particularly good news and demonstrates the future
potential of these fields.
Looking forward, we are planning to continue improvements which
in addition to optimising our water floods may involve techniques
such as re-fracking and well re-entries. We believe that these low
cost initiatives can deliver real production benefits".
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
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