LONDON (Alliance News) - Petroneft Resources PLC Wednesday said production from license 61 in Russia has increased by over 40% since the start of 2015 and the company has identified horizontal drilling can substantially increase production from its licenses.
The oil producer said current gross production from the license stands at around 2,600 barrels of oil per day, representing a 41% rise since the start of the year.
At the West Lineynoye concession in the license, the latest L-10 horizontal well is producing a "sustained rate" of 230 barrels of oil per day, and the company said the well has proven short segment horizontal drilling "greatly increases" flow rates.
Petroneft said the L-10 well was drilled to around 2,365 metres total vertical depth and of the 282 metre horizontal segment encountered, the company estimates around 125 metres is net oil pay. That well was brought on line on August 4.
The adjacent L-8 well is a vertical well and is currently producing around 50 barrels of oil per day from the same reservoir as L-10, showing that horizontal drilling can substantially increase the flow rate.
"There are over nine locations similar to L-10 that could be developed in the coming years with one or two well drilling programmes adjacent to existing infrastructure. The very good result of L-10, both from a drilling and production performance perspective, is a significant step to tying in these close to existing infrastructure projects in a highly cost effective manner," said the company.
At the Tungolskoye concession, the T-503 horizontal well continues to produce a steady rate of over 500 barrels of oil per day, Petroneft said. The T-502 well is currently undergoing segment drilling whilst the recently drilled T-508 well was drilled "in just 17 days", and will act as a water injector well, it said.
"The horizontal segment in the T-502 well is currently being drilled and is expected to be completed later this month," said the company.
Petroneft shares were up 3.2% to 4.85 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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