LONDON (Alliance News) - PetroNeft Resources PLC Friday said it will double production before the end of 2015 by conducting a drilling programme on its Russian assets.
The oil and gas exploration and production company operating in Russia said production is currently running at 2,000 barrels of oil per day, but is expecting this to rise to between 3,500 to 4,000 barrels of oil per day by the end of 2015 after it conducts its drilling programme.
The drilling programme will mainly take place on the Tungolskoye field and consist of eleven wells, up to five of which will be horizontal wells. PetroNeft has awarded a contract to SGK Drilling, a subsidiary of Eurasia Drilling, to carry out the drilling on the wells.
The first well under the programme is expected to be drilled in May, and the company is also constructing a 25 kilometre pipeline and power line to connect the field back to the Lineynoye central processing facility, which will be in use by June, said PetroNeft.
PetroNeft said the number 5 well on the Tungolskoye field has been temporarily shut in while it replaces a cable that connects the well to the electric submersible pump, which will take several weeks to do, it said.
At the Arbuzovskoye field, the company has brought the 104 well online and it is currently producing around 100 barrels of oil per day.
At the Sibkraevskoye field, PetroNeft said it is drilling an appraisal well which will be completed toward the end of April. The company is also conducting seismic work on the field, and said it will make a development decision for the field in the third quarter, with the field coming back into production in 2016 if given the go-ahead.
"Current production is about 2,000 barrels of oil per day, and based on recent results, we expect to almost double this figure by the end of the year," said Chief Executive Dennis Francis.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.