PetroNeft completes Cheremshanskoye road to C-4 well ahead of schedule

(Alliance News) - PetroNeft Resources PLC on Monday said it has completed the 6.5 kilometre ...

Alliance News 26 April, 2021 | 9:18AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - PetroNeft Resources PLC on Monday said it has completed the 6.5 kilometre Cheremshanskoye road ahead of schedule and within budget.

The Cheremshanskoye road connects the C-4 well on the Cheremshanskoye field to the nearest all season road, allowing for access all year round.

Shares in PetroNeft were up 17% at 2.98 pence in London on Monday.

The Irish oil and gas exploration company operating in Russia said the road is already being used to export oil from the C-4 well and is enabling personnel and equipment to be mobilised into and out of the field. More than 16,000 barrels of oil at the C-4 well have been produced and sold since production began.

In addition, PetroNeft said it is finalising its preparations to re-enter the L-2a well on the Ledovoye field, which is south of the North Ledovoye field in the adjacent Licence 55. A workover rig has been mobilised to the well and operations will start imminently. Initial results are expected by the end of the second quarter, it added.

"The success at Cheremshanskoye will provide a basis for a year-round production boost and the favourable tax position means that this additional production will deliver excellent returns," said Chief Executive David Sturt.

"It is also very exciting to be moving forward with the L-2a well re-entry. Previous wells have proven up oil in this field and we now need to focus on executing the re-entry to further increase reserves, production and revenue. Our strategy for this well is in line with our approach of using local expertise to deliver relatively low risk wells which will add immediate value in terms of production and reserves while using the minimum of capital," Sturt added.

By Zoe Wickens; zoewickens@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Petroneft Resources PLC 0.09 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures