Petroneft Resources PLC Tungolskoye No. 5 update (1773U)

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RNS Number : 1773U

Petroneft Resources PLC

14 October 2014

14 October 2014

PetroNeft Resources plc

("PetroNeft" or the "Group" or the "Company")

Tungolskoye No. 5 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 the Tungolskoye No. 5 ("T-5") well.

   --     Vertical pilot hole successfully completed 
   --     Structural interpretation of Tungolskoye confirmed 
   --     Open hole flow test of 100 bopd, unstimulated 
   --     8.2 metres of net oil pay encountered 
   --     Horizontal section of T-5 well to commence 

The vertical pilot hole of the T-5 well has been successfully drilled. The Upper Jurassic J1 oil reservoir horizon was intersected at -2,495.8 metres true vertical depth subsea (TVDSS), which is approximately 11 metres high to the T-1 well to the south. This is consistent with expectations and confirms the structural interpretation of Tungolskoye. Preliminary evaluation of the logs indicates that the J1 interval consists of at least 8.2 metres of net pay. An open hole test was conducted over this interval and tested at a pro-rated inflow of 100 bopd unstimulated.

The part of the well below about 800 metres will now be sealed with cement plugs to isolate the reservoir before drilling down at a different angle to properly position a new horizontal section. The well will first be drilled down to a depth of approximately -2,490 metres TVDSS and then casing will be set. Baker Hughes will then take over in order to drill the horizontal section in the reservoir. The process is expected to take approximately 3 to 4 weeks, after which the horizontal section of the well will be tested.

Arbuzovskoye

The Arbuzovskoye 106 well is drilling ahead at more than 2,000 metres depth and is expected to be completed later this month.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented:

"We are pleased with the results of the T-5 well so far and the flow rate achieved. The well has confirmed both the structural interpretation as well as a good reservoir interval and initial test. We look forward to completing our first horizontal well at Licence 61 and continuing our ongoing production drilling work at Arbuzovskoye."

For further information, contact:

 
 Dennis Francis, CEO, PetroNeft Resources       +353 1 
  plc                                         443 3720 
 Paul Dowling, CFO, PetroNeft Resources         +353 1 
  plc                                         443 3720 
 John Frain/Brian Garrahy, Davy (NOMAD          +353 1 
  and Joint Broker)                           679 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 
                                                +353 1 
 Joe Murray/Joe Heron, Murray Consultants     498 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 35 years experience in oil and gas exploration and development.

This information is provided by RNS

The company news service from the London Stock Exchange

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