PetroNeft says production has improved in Russia

Tomsk, August 25 - Neftegaz.RU. According to Irish Independent, oil and gas explorer PetroNeft says production has improved at its sites in Russia, as oil prices in the country rise.

The Dublin-listed company is focused on the Tomsk Oblast region of the country, where it owns and operates 50pc of Licences 61 and 67. In Licence 61 production is up 7pc year-on-year to 1,589 barrels per day in July.

There has been a “strong” performance from the Lineynoyefield with production over 20pc ahead of July 2019 levels, according to an update from the group. Its Sibkrayevskoye field is producing at approximately 246 barrels per day.

Production has increased year-on-year at Licence 61 due to a combination of optimising the water flood program at its Lineynoye field and placing the Sibkrayevskoye field into year-round production.

“The robust performance of the two wells is providing increased confidence in the forward potential development of the field,” PetroNeft said. There has also been an improvement in local market conditions where it sells its oil, following a global slump in prices earlier this year, according to the company. By June prices had “returned to near pre-crisis levels,” it added.

David Sturt, CEO of PetroNeft, said: "It is extremely encouraging to be able to begin seeing the benefits of the field optimisation programs which started last year with extensive but low-cost data gathering across our well portfolio.”

“Being able to stabilse and even increase production without deploying significant capital to expensive drilling is particularly good news and demonstrates the future potential of these fields,” he said.

Last December the company raised €1.9 mln in a share placing. At the time it said the funds raised are mainly being used to cover costs associated with the company's investment programme this year.

Meanwhile, Providence Resources has said 333,333 warrants of 3p have been exercised raising €11,084.

This was part of the fund raising in May. On the back of this the company has issued 333,333 new ordinary shares to the warrant holder.


Author: Ellie Donnelly