LONDON (Alliance News) - PetroNeft Resources PLC, an oil & gas exploration and production company, on Monday said production from licence 61 is running at about 2,500 barrels of oil per day, which is below expectations despite being 40% higher in 2015 to date.
The miss in expectations is due to "delays in bringing the Tungolskoye T-501 and T-505 wells into production and the greater than expected declines from the Arbuzovskoye wells drilled earlier this year".
The company said it is implementing workover programmes designed to address the problems, and expects to see production begin to improve shortly.
"We are generally pleased with our ability to drill horizontal wells at Tungolskoye which will be a key element of optimising recovery of existing reserves and successful execution of new developments in licence 61. While the initial results of the last two horizontal wells have been disappointing, we believe the results can be improved at minimal costs with the planned workovers and acid treatment of the reservoir," Chief Executive Dennis Francis said in a statement.
Shares in PetroNeft Resources were down 21% at 1.86 pence on Monday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.