🕐13.08.12 - 09:27 Uhr
PETRONEFT - OPERATIONS UPDATE
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PetroNeft Resources plc
("PetroNeft" or the "Company")
Operations Update
PetroNeft Resources plc (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk
Oblast, Russian Federation, is pleased to provide an update on its operations.
Highlights:
* Drilling of new production wells commences at Arbuzovskoye
* Two Lineynoye wells converted to water injectors for planned pressure support
* Production stable at 2,000 bopd
* Benefit of pressure support and new production wells anticipated over coming months
Licence 61 - Arbuzovskoye Pilot Development Programme
Drilling of the first of ten new production wells on the Arbuzovskoye oil field
has commenced and is expected to come into production in September 2012.
The drilling
rig and necessary supplies to drill ten wells were moved to location during Q1 when
winter roads were in place to handle the heavy loads.
The Arbuzovskoye No.
1 well is currently producing 300 bopd (with negligible water
production) through the recently constructed 10 km spur pipeline to the Lineynoye
oil processing facilities.
This rate is currently constrained by an electrical fault
with the pump that is preventing it from operating at its optimum rate.
The pump
will be replaced in due course.
Arbuzovskoye contains 2P reserves in excess of 13 million barrels of oil according
to independent reserve auditors Ryder Scott and is the Companys second production
development.
Licence 61 - Production
Total oil production, comprising both the Lineynoye and Arbuzovskoye oil fields,
is currently steady at about 2,000 bopd.
In July 2012, two Lineynoye producing
wells were converted as planned into water injection wells to provide pressure support
in the reservoir; we expect to recover the production lost from these two wells
through improved rates in nearby producing wells over the coming months.
Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented:
"We are delighted to have commenced drilling of the first of 10 planned new production
wells at Arbuzovskoye where our existing well has demonstrated very encouraging
production characteristics.
We will focus on developing Arbuzovskoye and seek to
steadily build on our existing production profile and positive cashflows throughout
the remainder of the year."
For further information, contact:
Dennis Francis, CEO, PetroNeft Resources plc
+1 713 988 2500
Paul Dowling, CFO, PetroNeft Resources plc
+353 1 443 7720
John Frain/Brian Garrahy, Davy (NOMAD and Joint Broker)
+353 1 679 6363
Henry Fitzgerald-OConnor, Canaccord Genuity Limited (Joint Broker)
+44 207 523 8000
Martin Jackson, Citigate Dewe Rogerson
+44 207 638 9571
Joe Murray/Ed Micheau, Murray Consultants
+353 1 498 0300
Qualified person
The information contained in this announcement has been reviewed and verified by
Mr.
Dennis Francis, Director and Chief Executive Officer of PetroNeft, for the
purposes of the Note for Mining, Oil and Gas Companies issued by the London Stock
Exchange in June 2009.
Mr.
Francis holds a B.S.
Degree in Geophysical Engineering
and a M.S.
Degree in Geology from the Colorado School of Mines.
He has also graduated
from the Harvard University Program for Management Development.
He is a member of
the American Association of Petroleum Geologists and the Society of Exploration
Geophysicists.
He has over 35 years experience in oil and gas exploration and development.
The technical disclosure in this announcement complies with the SPE/PRMS Standard.
Forward Looking Statements
This announcement contains forward-looking statements.
These statements relate to
the Companys future prospects, developments and business strategies.
Forward-looking
statements are identified by their use of terms and phrases such as believe, could,
envisage, potential, estimate, expect, may, will or the negative of
those, variations or comparable expressions, including references to assumptions.
The forward-looking statements in this announcement are based on current expectations
and are subject to risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by those statements.
These forward-looking
statements speak only as at the date of this announcement.
Glossary
2P reserves
Proved and probable reserves according to SPE standards
bopd
Barrels of oil per day
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