Petroneft brings forward Russian production date

PETRONEFT — the Irish oil and gas exploration company with a focus on the Russian market — has brought forward to August the expected date for the commencement of production from its two licences in the region.

The Dublin-headquartered company, which owns two exploration licences in the province of Tomsk in central Russia, had previously indicated sometime towards the end of the third quarter of the year for first production.

It has a production target of 4,000 barrels of oil per day (bopd) in place for this year and has successfully drilled six of nine planned production wells at its Lineynoye oil field.

“Drilling of the production wells is continuing ahead of schedule and the results continue to be within, or ahead of, expectations. I look forward to updating shareholders, in late August, confirming we have met this target,” the company’s chief executive Dennis Francis said.

The work is being carried out on Petroneft’s main Licence 61 interest in Tomsk (the Licence 67 interest was only acquired at the end of last year) and the drilling of at least three exploration wells at the Arbuzovskaya well, in the northern part of the licence, is due to commence in October.

According to management, this work has the potential to materially increase both company reserves and the long-term potential of Licence 61.

There also remains the possibility of the Dublin and London-listed company upping its portfolio of assets. Management has previously indicated it is open to acquisition opportunities in the Siberian region.

Petroneft’s share price, in Dublin, was up by nearly 6.5% at 56c yesterday.