Wednesday 26 June 2019

Dublin-listed oil company commences drilling of well in Russia

An engineer works on a Petroneft pipeline in Siberia
An engineer works on a Petroneft pipeline in Siberia
Ellie Donnelly

Ellie Donnelly

Irish oil and gas explorer PetroNeft has commenced drilling of the C-4 well at Cheremshanskoye in Russia.

The company, which operates in the Tomsk Oblast, Russia, is the 50pc owner and operator of Licences 61 and 67 at Cheremshanskoye.

Drilling of the well commenced in recent days.

"We are pleased to have commenced drilling the C-4 well which we feel has great potential as it will test multiple targets up-dip from nearby wells that have already tested oil in the same intervals," Dennis Francis, CEO of PetroNeft, said. 

"This is the first well to be drilled by the company based on the modern 3D seismic data acquired in 2014."

The C-4 well is designed to further delineate and de-risk the Cheremshanskoye field in advance of field development. 

Three prior wells have been drilled on the field, most recently in 2011 by PetroNeft, and oil has been identified and tested in four different intervals in the field.

The C-4 well is designed to test a large portion of the field, which is structurally higher than the previous wells based on recently acquired data, and therefore has the potential to "significantly increase" the potential recoverable reserves, the company said in a statement to the Stock Exchange.

The company was previously the subject of a boardroom battle as largest shareholder Natlata clashed with management over the direction of the business.

Eventually an agreement was reached which saw Natlata's ultimate beneficial owner Maxim Korobov join the Petroneft board.

Mr Korobov is a former member of the Russian parliament for Vladimir Putin's United Russia party. He is also a former Russian soldier who was wounded in the Soviet-Afghan War.

(Additional reporting Reuters)

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