Petroneft Resources PLC Operational Update (5583R)

TIDMPTR

RNS Number : 5583R

Petroneft Resources PLC

09 March 2021

PetroNeft Resources plc

9(th) March 2021

PetroNeft Resources plc ('PetroNeft' or 'the Company')

Production commences at Licence 67

PetroNeft (AIM: PTR) an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, and 90% owner and operator of Licences 67 and 50% owner and operator of Licence 61 is pleased to announce the following operational news.

Highlights

o Production commenced from the Cheremshanskoye field on Licence 67.

o Current production over 240 bopd.

Production has commenced from the C-4 well on the Cheremshanskoye field. The well has been flowing naturally with production building as the choke size has been gradually increased from 2 mm to 8 mm. The current flow rate is 243 bopd.

The forward plan is to closely monitor reservoir performance and at an appropriate time install a pump to maximise production and further increase revenue.

The C-4 well, which is located on the northern margin of the Cheremshanskoye field, was drilled during 2018 and tested oil at a combined 179 bopd from Upper Jurassic J1-1 and J1-3 clastic reservoirs from 2,630.8 m-2,633.8 m and 2,644 m-2,655 m.

The well was successfully re-entered in Q1 2020 to perform an extended well test. During this test, the well flowed at various choke sizes from the same Upper Jurassic J1-1 & J1-3 clastic reservoirs and flowed naturally at up to a maximum 476 bopd on a 10mm choke size.

The Cheremshanskoye field reserves are 19.26 mmbbls C1+C2 which were approved by GKZ (Russian State Reserves Committee) January 2019.

The Company recently increased its interest in Licence 67 from 50% to 90%.

David Sturt, CEO PetroNeft commented:

"Particularly as it closely follows the increase in our equity stake to 90 percent, we are delighted with the news from Cheremshanskoye. Early results from the initial well suggest that this well will perform at or above our expectations. This is a major achievement for the company bringing the Cheremshanskoye field in to production. We are particularly proud that our team in Tomsk has been able to achieve this during a particularly harsh winter season when temperatures have at times been below minus 50 C.

There is considerable potential to increase value through development of this field due to the size of the structure, proximity to good infrastructure and the field being eligible for a reduction in the production tax.

We are looking forward to providing further updates."

For further information, contact:

 
                                                         [phone] 
 David Sturt, CEO, PetroNeft Resources plc                6-8 
                                                         +353 1 679 
 John Frain/Caroline Pearson, 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

 
 bopd      Barrels of oil per day 
 mm        Millimetre 
          --------------------------------------------- 
 mmbbls    Million Barrels 
          --------------------------------------------- 
 C1 + C2   Russian State Reserves C1 + C2 is equivalent 
            to 2P (Proven + Probable) 
          --------------------------------------------- 
 

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March 09, 2021 02:00 ET (07:00 GMT)