LONDON (Alliance News) - PetroNeft Resources PLC shares rose on Tuesday after the company revealed production has soared since last month after a strong performance from the new wells that have been drilled on Arbuzovskoye field led to an "all-time record" rate.
PetroNeft shares were trading up 16% to 2.30 pence per share on Tuesday morning.
The producing oil company operating in Russia said current gross production from licence 61 has reached a record of 3,500 barrels of oil per day after three new wells that have been drilled on the Arbuzovskoye field performed strongly once they came online.
The current rate of production is over 73% higher than the average production of 2,021 barrels per day over the course of 2015 and over 16% higher than than the 3,000 barrels being produced each day in June.
Of that current gross production rate, 1,750 barrels per day are net to PetroNeft.
The A-214 horizontal production well on Arbuzovskoye was the first to find oil in the secondary J1-2 interval when it was initially drilled and the well is now producing from that interval alongside the J1-1 interval, which together are producing over 350 barrels of oil per day.
The A-215 horizontal production well initially found a net oil pay of 931.0 metres and the well is currently producing 750 barrels of oil per day, with 5.0% water. The third horizontal well, A-216, found an initial net pay of 809.0 metres and is currently producing 650 barrels per day, also with 5.0% water.
A fourth well has been added to the programme at Arbuzovskoye due to the success at the other three wells that have been drilled. The well will be a deviated production well and drilling started on June 20, with initial results expected "later this month," the company said.
PetroNeft has also started to drill the S-374 well on the Sibkrayevskoye field. Those operations started on Sunday, and the results from the well are expected sometime in August, the company said.
"Licence 61 production has achieved a record rate of 3,500 barrels of oil per day due to the successful programme at South Arbuzovskoye. Also, in light of this success, we have added one further well to the programme that is not yet on production," said Chief Executive Dennis Francis.
"The production reflects both the good reservoir properties at South Arbuzovskoye and our ability to target the most productive parts of the reservoir with horizontal wells," he added.
"In the near term we look forward to completion of the A-216 well at South Arbuzovskoye which will add production and the S-374 delineation well at Sibkrayevskoye which will further define the field with the objective of moving P3 to P2 reserves," said Francis.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.