REG - Petroneft Resources - Operational Update

Petroneft ResourcesAnnouncement

12/11/2021 07:05

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RNS Number : 1615S  Petroneft Resources PLC  12 November 2021

12(th) November  2021

 

 
PetroNeft Resources plc ('PetroNeft' or 'the Company')

 

 

Operational Update

 

PetroNeft (AIM: PTR) an oil & gas exploration and production company,
operating in the Tomsk Oblast, Russian Federation, and 90% owner and operator
of Licence 67 and 50% owner and operator of Licence 61 is pleased to announce
the following operational news.

 

Highlights

 

o Contract signed for the provision of fracking services on the Lineynoye and
Arbuzovskoye fields in Licence 61 during the forthcoming winter season.

 

Following the success of our fracking program in early 2021, PetroNeft is
pleased to announce it is extending the campaign for winter 2021/22 with the
goal of increasing production and also improving the sustained flow rate of
existing wells  over two producing fields in licence 61.

 

During Q1 2021, a two well fracking program was successfully completed on
wells S-373 (Sibkrayevskoye field) and L-115 (Lineynoye field). Both were
highly successful and exceeded expectations with immediate post frack
production rates increasing over 200% and have leveled off at an increased
rate of between 50%-100% and currently projected to make a full return on
investment before the end of the year, well ahead of schedule.

 

Following this successful initial program, a new contract was signed with
NewTech Well Services LLC, an international oilfield services company, for the
provision of a larger fracking program covering an additional five wells.
The contract has been secured at the same terms as earlier in the year,
ensuring a strong return on additional production.

 

The program includes the fracking of four wells at the Lineynoye field and one
well at the Arbuzovskoye field. Other contingent candidates are still being
evaluated and should they meet the technical, operational and economic
criteria they may be added to the program.

 

At the Lineynoye field the target is to refrac four wells to boost overall
production and cash flow. At the Arbuzovskoye field, the A-1 well has been
suffering from near well bore reservoir damage. Historically the well has been
re-perforated multiple times and although these programs have been successful
in reestablishing production, the rates have progressively declined. The
planned frack has therefore been designed to remove near well bore damage and
reach out into some potential areas of the reservoir that have not been
drained adequately.

 

 

 

 

David Sturt, CEO PetroNeft commented:

 

"The two well fracking program in early 2021, which was based on extensive
technical planning by our team, was a fantastic success.  The program
performed beyond our expectations and will have delivered a full return on
investment in under a year. Based on this, our team has developed a more
ambitious 5-well program for the coming winter. We are delighted to be working
again with NewTech, following the successful engagement earlier in the year.

 

After considerable technical review, we took a careful and measured approach
to our two well fracking program earlier this year to ensure that our
assumptions were correct. It is now very satisfying to be able to extend the
program this year to another five wells and further boost production on our
licence 61 asset. We will continue to work closely with all the relevant
stakeholders to ensure we operate in a safe and environmentally responsive
manner, through full execution of this program

 

This is the first part of our 2022 operational program to be announced and we
look forward to providing further updates over the coming weeks as we look to
build on the progress made to date."

 

For further information, contact:

 David Sturt, CEO, PetroNeft Resources plc         +971 55 1919 808
 John Frain / Ciara O'Mongain, Davy (NOMAD and     +353 1 679 6363
 Broker)
 Joe Heron / Douglas Keatinge, Murray Consultants  +353 1 498 0300

 

 

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