Saturday 16 December 2017

PetroNeft production up 40pc

PetroNeft is active in the Tomsk region of Siberia
PetroNeft is active in the Tomsk region of Siberia

Shares in Irish oil and gas explorer PetroNeft rose strongly yesterday after the company said that production has increased by 40pc since the start of the year.

The oil producer said current gross production from its Russian licence is now at around 2,600 barrels of oil per day, representing a 41pc rise since the start of the year.

The firm's latest well, called the L-10, is producing a "sustained rate" of 230 barrels of oil per day, and the company said the well has proven short segment horizontal drilling "greatly increases" flow rates.

A horizontal well at Tungolskoye is currently producing more than 500 bopd.

A horizontal segment is currently being drilled at another one of the company's wells, the T-502 well at Tungolskoye. It is expected to be completed later this month.

Petroneft, whose operational activity is solely focused on the Tomsk region of Russia, reported a full-year, pre-tax loss of just under $8.4m (€7.5m) for 2014, down by around 27pc on the previous year's $11.5m total.

PetroNeft chief executive Dennis Francis said: "We are very pleased with the L-10 well result. Our operational progress is gathering momentum and this is evident in our sustained drilling and production growth. We are now looking forward to the T-502 horizontal well result in the coming weeks."

Shares in the company were up by almost 6pc by mid-afternoon in London trading.

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