PetroNeft Resources production rate up 20%

Strong results from recent drilling activity has boosted PetroNeft Resources’ current production rate by 20%; with the Irish explorer also suggesting one of its key fields is likely to be larger than initially thought.

PetroNeft Resources production rate up 20%

In an upbeat operational update, issued yesterday, the Dublin-based exploration firm – which is focused on the Siberia region of northern Russia – said one of its first horizontal drilling operations in Western Siberia, at the T-503 well at the Tungolskoye field, recently flowed 550 barrels of oil per day (bopd) for five days, with this lately improving to 675 bopd and likely to get even better. The find has upped PetroNeft’s current gross production from the relevant Licence 61 to 2,400 bopd; up 20% on earlier in the year.

“Current production compares to a rate of around 2,000 bopd outlined in March, at which time the company guided an exit rate for the year in the range of 3,500-4,000 bopd. Our average gross financial year 2015 stands at 2,831 bopd,” said Gerry Hennigan of Goodbody Stockbrokers.

PetroNeft also said early indications from seismic work conducted on its Sibkrayevskoye field – already its largest asset, with gross reserves of close to 50 million barrels – are that it is likely to be larger than first thought. The company should have a reserve update on the asset at the end of the year.

“While our near-term focus remains on production growth, we are also very encouraged by the potential significant reserve upside at Sibkrayevskoye,” said PetroNeft’s CEO, Dennis Francis.

The company’s share price was up by over 3.5% on yesterday’s news.

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