(Sharecast News) - PetroTal announced the successful testing results of well 13H, its 13th producing well, on Thursday, reporting that it tested at about 8,000 barrels of oil per day over its first week of production.
The AIM-traded firm said that placed it in the top horizontal producers drilled by the company, with the 2 November rate coming in at 7,825 barrels of oil per day.
It said that to optimise operations, well 13H was drilled ahead of well 12H to save time and cost related to skidding the rig to the corresponding cellar.
The well was drilled to a total measured depth of 4,864 metres, including a 1,152 metre lateral section, making it the longest horizontal well the company had drilled thus far.
PetroTal said the total cost of the well was $14.4m, within budget, adding that it was completed on time without any operational issues.
Well 13H was successfully completed on 13 October, although it could not be fully tested until 27 October, when internal storage capacity became available.
Barging logistics were continuing to improve, with the company now expecting to raise production levels by mid-November.
PetroTal said its current field production capacity was more than 20,000 barrels of oil per day, adding that well 13H encountered the target producing formation approximately three metres higher than prognosis, and about five metres higher at the end of the horizontal section, which could have a positive impact on the oil-in-place estimates and reserves.
At well 12H, meanwhile, PetroTal said it was continuing its active drilling program to further increase its low cost, high margin production at Bretana.
On 16 October, it started drilling well 12H with an approximate cost of $14m, and an estimated completion in mid-December.
"We are pleased to announce the successful and productive 13H oil well, our longest horizontal well to date," said president and chief executive officer Manuel Pablo Zuniga-Pflucker.
"We look forward to seeing the 12H well deliver similar results.
"We will continue to operate and develop our assets with prudent and safe operational practices that deliver best in class productivity for employees and shareholders."
PetroTal said it would release its third quarter financial and operating results on 17 November.
At 1115 GMT, shares in PetroTal were up 6.65% at 49.7p.
Reporting by Josh White for Sharecast.com.
PetroTal (PTAL)