(Alliance News) - PetroNeft Resources PLC on Monday said it has completed the 6.5 kilometre Cheremshanskoye road ahead of schedule and within budget.
The Cheremshanskoye road connects the C-4 well on the Cheremshanskoye field to the nearest all season road, allowing for access all year round.
Shares in PetroNeft were up 17% at 2.98 pence in London on Monday.
The Irish oil and gas exploration company operating in Russia said the road is already being used to export oil from the C-4 well and is enabling personnel and equipment to be mobilised into and out of the field. More than 16,000 barrels of oil at the C-4 well have been produced and sold since production began.
In addition, PetroNeft said it is finalising its preparations to re-enter the L-2a well on the Ledovoye field, which is south of the North Ledovoye field in the adjacent Licence 55. A workover rig has been mobilised to the well and operations will start imminently. Initial results are expected by the end of the second quarter, it added.
"The success at Cheremshanskoye will provide a basis for a year-round production boost and the favourable tax position means that this additional production will deliver excellent returns," said Chief Executive David Sturt.
"It is also very exciting to be moving forward with the L-2a well re-entry. Previous wells have proven up oil in this field and we now need to focus on executing the re-entry to further increase reserves, production and revenue. Our strategy for this well is in line with our approach of using local expertise to deliver relatively low risk wells which will add immediate value in terms of production and reserves while using the minimum of capital," Sturt added.
By Zoe Wickens; zoewickens@alliancenews.com
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