Petroneft Resources Share Discussion Threads

[cfccfc1970] 22/7/2015 18:21

I have to say the best update we have had in say three years, and granted it has not had to beat much, but it look as if we are on our way!!!

....and the share price rises 0.1....(probably give that "gain" back tomorrow) !!

[granto2] 22/7/2015 18:20

steelwatch, thanks for that. Maybe I meant Plan A and A1, my question is did they hit oil in the upper J1 section of the vertical well. it doesn't actually say. I am clear on the Hz well and all that it entails. The thing is if they hit oil, why didn't they say so, and maybe give some data like Bopd etc. Nope, we get a line about nice sandstone. well as a non geologist I need it spelt out a little clearer. what do you think? I would email but they never reply.

[steelwatch] 22/7/2015 17:58

Quoting Dennis Francis:

"In 2015, as part of the full field development of the Lineynoye and West Lineynoye oil fields, we will drill the Lineynoye No. 10 delineation well on the Lineynoye 8 lobe of the West Lineynoye field. The Lineynoye No. 8 well has been steadily producing 50 bopd for the last several years with little decline and no water production. The L-10 well will be drilled initially as a vertical well, but then a horizontal segment of up to 300m will be drilled in the main J1-1 reservoir interval. The well is being drilled by LLC Tomskburneftegaz (“TBNG”), and is similar in nature to the T-5 well which they drilled at Tungolskoye. It is expected to be completed in the summer of 2015 and, if successful, can immediately be brought in production."

[seangwhite] 22/7/2015 17:37

rav

The company brokers are Davy not Goodbody that said nobody seems overwhelmed by the RNS put out today.

VGLTA

[steelwatch] 22/7/2015 17:27

granto - it isn't plan B. The plan was always to drill the horizontal section and the vertical pilot donor well was the first stage of it. First they drill the pilot and case it. Then cut a window in the casing and insert a shoe to kick off the horizontal sidetrack. The fact the pilot also looked at the J1-2 sandstone interval is by the by now and that interval will be plugged off. All the reservoirs in this area drilled so far are sandstone of varying porosities. Not sure where you are coming from with sandy grit.

[granto2] 22/7/2015 17:17

steelwatch. the way you read it is how I read it first, however on several reads afterwards I saw a potential different meaning. They say they encountered the reservoir bit didn't say what was in it, OIl, water or sand ? Can we have a sand reservoir - I suppose we can. They pushed on for the lower J2 section and it is clear that was useless to them. I think the reservoir in J1 was simply sandy grit but of good quality, meaning oil based quality, So plan B is to drill a Hz section further up the structure above the water level. I understand the T-5 area quite well, thats looking like a right little gold mine, but best of all today was the extension into Sib Eastern .. this was unchartered and a bit of a surprise as it was a low level prospect 5km by 3km area and its all connected. there could be 20m bol there, what's that worth ?

[steelwatch] 22/7/2015 16:48

Actually, no mention at all of water was made in connection with the L-10 pilot. I think you may be confusing with this:

"The Tungolskoye T-51B well has also been completed. While it provided the necessary stratigraphic control for the T-503 horizontal well, the reservoir in this vertical well was tight in the J1-2 and it was not possible to produce from it. The well will ultimately be used as the water source well for pressure maintenance programme at Tungolskoye.

[steelwatch] 22/7/2015 16:31

Granto - apparently no oil was found in the J1-2 secondary target at that location.

The quality of the sand in the J1-1 primary target is what they seem pleased with. The horizontal sidetrack they are currently drilling to intercept the J1-1 reservoir 12m higher on the structure is expected to be oil bearing and is already producing from the old L-8 well.

[ravin146] 22/7/2015 16:25

surfer if only life was that easy lol...

lets hope we get some large buys this week...at decent levels

[granto2] 22/7/2015 15:58

can anyone help me understand this….

.West Lineynoye

The vertical pilot hole of the L-10 well has been drilled and logs show approximately 2.5 metres of excellent quality sandstone in a 4.0 m gross sandstone interval in the Upper Jurassic J1-1 reservoir at a depth of 2,367 metres TVD. While the reservoir was present, no oil was found in the secondary objective J1-2 interval. The horizontal segment of the well is now underway. The well will intercept the J1-1 reservoir about 12 m higher on the structure to the L-8 exploration well which is currently producing 50 bopd from a vertical section of the J1-1 sandstone. The well is being drilled from a surface location near the L-8 well and can immediately be tied-into the Lineynoye facilities through existing infrastructure.

does this mean that they encounter oil in J1 or just a water filled reservoir. Can I also ask why they are pleased with the quality of the sandstone ? many thanks.

[surfer2] 22/7/2015 15:22

675 bopd from 663m of the 1000m horizontal section. can we extrapolate that to 1000 bopd per horizontal well?

[scallywagkid] 22/7/2015 12:00

From Panmure Gordon...

Petroneft Resources – Licence 61 update (PTR LN, Mkt cap: £30.5m) – Positive

Petroneft has provided an operations update on Licence 61, in the Tomsk Oblast, onshore Russia. The Tungolskoye field has been brought onto production with the second horizontal well on the structure, T-503, now testing at 675bd from an effective 663m of the 1000m horizontal section. Current overall gross production from Licence 61 is now around 2.4kbd which compares with production of 2.0kbd for FY14. The T-51B vertical well on the structure found tight reservoir but is to be used to as the water source well for pressure maintenance. The T-508 vertical well is now drilling ahead. At Sibrayevskoye, seismic interpretation suggests the field is ‘significantly larger’ than previously mapped and may form a single structure with East Sibkrayevskoye. Ryder Scott had estimated reserves at Sibkrayevskoye at 53mmbbl gross, ahead of the good results from the S-373 well drilled this year and this new interpretation. Petroneft expects to prepare a new reserves update for the end of the year. At West Lineynoye, the vertical section of the L-10 well found excellent reservoir in the primary objective but the secondary objective was dry. The horizontal section of the well is now being drilled.

Overall, this looks a highly positive update to us, despite the minor disappointments at T-51B and L-10. Horizontal drilling at Tungolskoye is proving its worth, production at Licence 61 has jumped and Sibkrayevskoye now appears significantly larger than previously believed.

[ravin146] 22/7/2015 11:58

steelwatch correction you are correct, I meant analyst update.

I hope General In'' continue to buy and surpass Natlata's stake.

[steelwatch] 22/7/2015 11:19

ravin. Goodbody isn't company broker. Davy and Cannacord are.

[ravin146] 22/7/2015 11:14

I have continued to say this probably few dozen times now...setting a target of 4000 is a real sign of confidence from the BoD and Oil, given Ptr's track record on targets failed to be reached. But another thing about setting a target, is that if the target is not surpassed, the share price will not improve and the 'surprise' factor is what will move this. Just reaching teh target may in fact not even move the share price especially when we have a side story of stock building at cheap prices? wtf? who is selling?!

As I have repeated, the progress towards 4000 is a must/critical in holding the share price at this level....but a reserve update is required...not a one liner...but serious analysis of an upgrade and a re-rate of this stock...then we are talking 7p+. A hold rating by goodboody sums it all up...after all the positive news it is still a hold?! And they are the brokers no? Reserve update is not until end of year?!...and today's volume is poor...I expect sideways movement until we are surpised with news or it is a resreve upgrade. Today's RNS is 'business as usual' imo, dyor, gla

[seangwhite] 22/7/2015 11:04

I am surprised not to have had a few lines from Db as the RNS was not too opaque by PTR standards.The volume of shares traded today show the level of support for PTR and Goodbody's Hold rating sums it up.No real changes here until we get some fresh faces arround the Board.Come on Natlata et all or O.I. make a bid - 'you know it makes sense'VGLTA

[danny111] 22/7/2015 10:49

Thanks Steel, I somehow missed that update on T-5. Disappointing outcome I suppose, but at least it will inform on the best drill approach for the field.

[steelwatch] 22/7/2015 10:25

Danny - The T-5 well confirmed structure and reservoir and the T-503 well was drilled using T-5, 51B & T-1 as control.

Dennis Francis has since stated re T-5:

"...an ESP breakdown meant production had to be stopped and could only be recommenced once the drilling rig was disassembled and the pipeline completed.
After replacing the ESP an influx of water, which can be avoided in future wells, has now limited oil production to about 100 bopd. T-5 successfully proved the increased productivity of even a moderate horizontal segment, as predicted, and allowed development to be sanctioned at Tungolskoye. Future wells will be drilled higher on the structure".

[danny111] 22/7/2015 09:53

Nice to see the performance of the T-503 well, but no mention of the T-5 well that was shut in due to a cable issue. As I recall, that well had an intial performance of circa 400 bopd and was expected to be shut in for a few weeks a couple of months ago.

Seems crazy that we have seen some 18m (2% of the company) shares acrued by an existing large holder on top of a recent significant top up by Natlata, a positive operations update and obvious progress, yet the share price has not budged! It's also interesting that we have not seen any other holding RNS showing reduced holdings for other entities imo.

[steelwatch] 22/7/2015 09:27

PetroNeft Operations Update – production up to 2,400 bopd

PetroNeft released an Operations Update this morning in which the main points of note, in our view, related to: (i) current gross production of c2,400 bopd; (ii) a rate of 550 bopd achieved from the T-503 horizontal well in Tungolskoye over the past five days; and (iii) an indication that the Sibkrayevskoye structure may be larger than previously understood.

Current production compares to a rate of c2,000 bopd outlined in March, at which time the company guided an exit rate for the year in the range of 3,500 - 4,000 bopd. Our average gross FY15 assumption stands at 2,831 bopd. The T-503 well at Tungolskoye was brought online on July 14th. The statement suggests that higher flow rates should be possible once the well has been fully cleaned up. The latest test rate for T-503 on 21 July 2015 flowed at 675 bopd.

The larger structure potential at Sibkrayevskoye has evolved post the drilling of the 373 appraisal well on and in the wake of early interpretation of the new 1,000 km 2D seismic. A reserve update will be prepared at the end of the year.

With the focus on production in the wake of the farm-down to Oil India (50% of Licence 61) in 2014 and the resumption of drilling activity the update this morning represents a step in the right direction.

Recommendation: Hold
Closing Price: £0.04
Gerry Hennigan
[phone]
[e-mail]

[kevjones2] 22/7/2015 09:26

Goodbody's article also repeats what we read in the RNS and finishes with this paragraph:

"With the focus on production in the wake of the farm-down to Oil India (50% of
Licence 61) in 2014 and the resumption of drilling activity the update this morning represents a step in the right direction."

[kevjones2] 22/7/2015 09:21

From Davys this morning. Headed "Good Petroneft Update"

"Petroneft has announced that the T-503 horizontal well has flowed at a sustained rate of 550 bopd and that the flow-rate is improving. The well is further confirmation that horizontal drilling can have a meaningful and positive impact on production from Licence 61 in western Siberia. Current gross production from Licence 61 is now 2,400 bopd, up from 1,950 bopd reported on May 22nd."

[seangwhite] 22/7/2015 08:41

No chance of our BOD being that dynamic.DF must be looking for a decent bid as an exit route as he has a large personal holding the other BOD members only a small number.The lack of PR from the company is just a sign of a tired old BOD.We need someone to come along and make a bid to wake the BOD from its slumber.VGLTA

[tens machine] 22/7/2015 08:32

could it not be a management buyout ,natlata being the front man. could explain lack of pr by management. because most oilers would be shouting todays production increase from the roof tops?

[seangwhite] 22/7/2015 08:17

Looks like slow but steady progress in the planned program of work.If it keeps going like this we could break 5p by Xmas!My bet is that we will not a listed company in 2016.VGLTA