🕐23.11.12 - 08:27 Uhr
PETRONEFT - OPERATIONS UPDATE
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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 at
Licence 61.
Highlights:
* Arbuzovskoye well 109 successfully completed and put into production
* The well is just beginning to stabilise after experiencing flow line problems
caused by the very cold weather.
We expect the initial flow rate of 100 bopd to
increase somewhat
* There is no water production associated with the well
* Arbuzovskoye well 111 drilling ahead
* Group production is currently 2,500 bopd; however, 4 production wells are currently
off line for remedial work on pumps
* The 4 off line wells plus well 111 are expected to be all on line by year end.
Licence 61 - Arbuzovskoye Pilot Development Programme
Arbuzovskoye well 109, the third of ten planned new production wells on the Arbuzovskoye
oil field, has been successfully completed and brought into production at an initial
rate of 100 bopd with no visible water cut.
Due to very cold weather in the field we experienced some early flow line problems
with the well when it was cleaning up caused by freezing of the completion water.
Well stabilisation is now underway and we expect the well rate to improve somewhat
in the coming period.
The average production level from the first three wells at
Arbuzovskoye is running ahead of initial targets.
Arbuzovskoye well 111 (previously known as location #12), the next well in the drilling
sequence, is currently drilling ahead.
Arbuzovskoye contains 2P reserves in excess of 13 million barrels of oil according
to independent reserve auditors Ryder Scott and is the Companys second production
development.
Licence 61 - Production
Total oil production, comprising both the Lineynoye and Arbuzovskoye oil fields
is currently 2,500 bopd.
The rate is reduced due to 4 wells at the Lineynoye oil
field being currently off-line while remedial work is carried out on the down-hole
pumps.
All these wells, along with the Arbuzovskoye 111 well, are expected to be
on line before the end of the year.
Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented:
"While well 109 is very economic at this initial flow rate we do expect the rate
will improve somewhat as we optimise the well.
Importantly, the well is producing
100% oil with no water so we are continuing to confirm our understanding of the
size of the field.
While some operational challenges and variation in results should
always be expected, we look forward to completing further wells in Arbuzovskoye
over the coming months as we continue to focus on materially increasing our production
profile and cash flows."
For further information, contact:
Dennis Francis, CEO, PetroNeft Resources plc
+1 713 988 2500
Paul Dowling, CFO, PetroNeft Resources plc
+353 1 443 3720
John Frain/Brian Garrahy, Davy (NOMAD and Joint Broker)
+353 1 679 6363
Henry Fitzgerald-OConnor, Canaccord Genuity Limited (Joint Broker)
+44 207 523 8000
Martin Jackson, Citigate Dewe Rogerson
+44 207 638 9571
Joe Murray/Ed Micheau, Murray Consultants
+353 1 498 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 Companys 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
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