Tuesday 17 July 2018

PetroNeft outlines drilling plans for 2018

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

Ellie Donnelly

Dublin and London-listed oil and exploration company PetroNeft has announced details of its 2018 drilling programme.

The company, which operates in the Tomsk Oblast, Russia, will start drilling a delineation well at the Cheremshanskoye oil field in Licence 67 where it is a 50pc owner-opeator.

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.

SSK Drilling, a drilling contractor with operations throughout Russia, has been awarded the drilling contract.

The well is being drilled under the joint venture agreement with PetroNeft’s partner for Licence 67, Arawak Energy on a 50:50 basis.

PetroNeft said that their proportion of the well costs will be funded from existing resources.

In respect of Licence 61, where the company is also a 50pc owner-operator, PetroNeft said that it would continue to test the S-373 and S-375s wells for the remainder of the 2018 winter season.

The data from the tests will then be used to plan for future development at Sibkrayevskoye, which requires a 26km pipeline back to the Lineynoye Central Processing Unit, PetroNeft said.

Meanwhile the company said that it was also planning to re-evaluate the development of the West Lineynoye L-8 Lobe. This is based on the good results from the two horizontal wells at South Arbuzovskoye in 2016 where the company said it has similar thin pays with "good reservoir properties" in the continuous J1-1 interval.

"We look forward to 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, chief executive of PetroNeft, said.

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

Earlier this year the company announced that it had agreed a loan facility for up to US$2m (€1.6m) with Swedish company Petrogrand.

The loan facility, which will mature at the end of this year, will be used for general corporate purposes and to finance a potential drilling programme in 2018, the company said.

Online Editors

Business Newsletter

Read the leading stories from the world of Business.

Also in Business