LONDON (Alliance News) - Petroneft Resources PLC shares rose on Thursday after it said production from licence 61 in Russia has significantly increased since last year after two new wells drilled on the Arbuzovskoye field delivered encouraging results.
Petroneft shares were trading up 13% to 2.35 pence per share on Thursday morning.
The company said production from licence 61 is currently running at around 3,000 barrels of oil per day, considerably higher than in the middle of December last year when production was running below expectations at around 2,500 barrels of oil per day.
Petroneft said the sharp increase in production is because of the "very encouraging results" from the A-214 and A-213 wells that have recently been drilled.
The A-214 production well underwent 1,000 metres of horizontal drilling with the bottom hole at 4,008 metres measured depth. The evaluation of the pipe conveyed logs indicate there is a net oil pay of around 931.0 metres, the company said.
Current production from the well is running at around 800 barrels of oil per day with less than 5.0% water, which is the best flow rate from an individual well that Petroneft has seen to date from licence 61.
The A-213 vertical production well encountered two oil zones with a combined net oil pay of 6.9 metres and the well managed to test the J1-2 interval for the first time at the Arbuzovskoye field.
Petroneft said the lower J1-2 zone, which has a 2.9 metre net pay, is currently producing around 130 barrels of oil per day whilst the upper J1-1 zone, which has a 4.0 metre net pay, is expected to begin producing by the end of June.
Petroneft said it will now review all of the wells on the Arbuzovskoye field based on the A-213 result. The second horizontal well at Arbuzovskoye, A-215, is currently being drilled and is expected to be completed in about one month.
Petroneft is also preparing to drill the S-374 delineation well on the Sibkrayevskoye field in July, and said the wider development of the field should start in the first quarter of 2017.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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