Business Irish

Wednesday 19 June 2019

Dublin-listed Petroneft confirms 'excellent' test results from Siberia well

An engineer works on a PetroNeft pipeline in Siberia.
An engineer works on a PetroNeft pipeline in Siberia.
Ellie Donnelly

Ellie Donnelly

Petroneft has said the open-hole test results from the C-4 well drilled into the northern part of the Cheremshanskoye Field in Siberia has yielded "excellent" results.

The latest results are based on cased hole testing of earlier open hole tests on two upper Jurassic horizons.

The well productivity from the cased-hole test indicates that the combined intervals should achieve in excess of 450 barrels of oil per day when produced on an electric submersible pump, the Irish oil and gas explorer said.

The well was drilled using 3D seismic, and the company estimates that it has the potential to upgrade gross reserves by around 40 million barrels.

Petroneft has a 50pc stake in the project and is the project operator.

Commenting on the update Dennis Francis, CEO of PetroNeft, said the group was pleased to report that extensive cased-hole testing of the C-4 well has confirmed and upgraded the encouraging initial short-term open-hole test results.

"The test data confirms Cheremshanskoye as a significant oil discovery within Licence 67 with good reservoir properties and excellent flow rates."

"The company has engaged financial advisers in Russia to test the market and gauge appetite for a potential sale of Licence 61. While we are only in the early stages of this process for L-61, we have seen a high level of interest from a range of well-financed industry players," he added.

"Given the good result of the C-4 well, we would now expect a similar high level of interest in Licence 67. The good result of the C-4 well clearly expands the company’s options for returning value to shareholders."  

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

An agreement was eventually reached which saw Natlata's ultimate beneficial owner Maxim Korobov join the Petroneft board. (Additional reporting Reuters)

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