Petroneft Resources PLC Operations update (8319J)
August 13 2012 - 2:00AM
UK Regulatory
TIDMPTR
RNS Number : 8319J
Petroneft Resources PLC
13 August 2012
13 August 2012
PetroNeft Resources plc
("PetroNeft" or the "Company")
Operations Update
PetroNeft Resources plc (AIM: PTR) owner and operator of
Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to
provide an update on its operations.
Highlights:
-- Drilling of new production wells commences at Arbuzovskoye
-- Two Lineynoye wells converted to water injectors for planned pressure support
-- Production stable at 2,000 bopd
-- Benefit of pressure support and new production wells anticipated over coming months
Licence 61 - Arbuzovskoye Pilot Development Programme
Drilling of the first of ten new production wells on the
Arbuzovskoye oil field has commenced and is expected to come into
production in September 2012. The drilling rig and necessary
supplies to drill ten wells were moved to location during Q1 when
winter roads were in place to handle the heavy loads.
The Arbuzovskoye No. 1 well is currently producing 300 bopd
(with negligible water production) through the recently constructed
10 km spur pipeline to the Lineynoye oil processing facilities.
This rate is currently constrained by an electrical fault with the
pump that is preventing it from operating at its optimum rate. The
pump will be replaced in due course.
Arbuzovskoye contains 2P reserves in excess of 13 million
barrels of oil according to independent reserve auditors Ryder
Scott and is the Company's second production development.
Licence 61 - Production
Total oil production, comprising both the Lineynoye and
Arbuzovskoye oil fields, is currently steady at about 2,000 bopd.
In July 2012, two Lineynoye producing wells were converted as
planned into water injection wells to provide pressure support in
the reservoir; we expect to recover the production lost from these
two wells through improved rates in nearby producing wells over the
coming months.
Dennis Francis, Chief Executive Officer of PetroNeft Resources
plc, commented:
"We are delighted to have commenced drilling of the first of 10
planned new production wells at Arbuzovskoye where our existing
well has demonstrated very encouraging production characteristics.
We will focus on developing Arbuzovskoye and seek to steadily build
on our existing production profile and positive cashflows
throughout the remainder 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, Citigate Dewe Rogerson 9571
+353 1 498
Joe Murray/Ed Micheau, Murray Consultants 0300
Qualified person
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 Note for Mining, Oil
and 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 35 years experience in oil and gas exploration and
development. The technical disclosure in this announcement complies
with the SPE/PRMS Standard.
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.
Glossary
2P reserves Proved and probable reserves according to SPE standards
bopd Barrels of oil per day
--------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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