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Petroneft ‘delighted’ with oil flow at Western Siberia horizontal well

03rd February 2015

Petroneft has reported strong flows of oil at its T-5 horizontal well in the Tungolskoye field of Western Siberia, as well as positive results from its Arbuzovskoye and Sibkrayevskoye plays

Petroneft has reported strong flows of oil at its T-5 horizontal well in the Tungolskoye field of Western Siberia, as well as positive results from its Arbuzovskoye and Sibkrayevskoye plays
Development of the Tungolskoye oil field which is estimated to contain 20 mmbbls in 2P reserves will now proceed immediately

The horizontal segment of the Tungolskoye No. 5 well has been drilled and completed in the J1-1 and J1-2 Upper Jurassic intervals.

The total horizontal segment was just over 350 metres of which over 80 per cent was located in the productive J1-1 and J1-2 reservoirs at depths between -2,502 m and -2,517 m TVD.

The well is still cleaning up and current production is 604 bopd using an Electric Submersible Pump (ESP).

The oil is currently being trucked 25 kilometres to the Lineynoye central processing facility.

"We are delighted with the result of the T-5 well, our first horizontal well, which has exceeded our expectations and which bodes extremely well for the development of Tungolskoye where we plan a number of longer horizontal segments in an 11 well campaign,” said Dennis Francis, chief executive officer of PetroNeft Resources plc.

Development of the Tungolskoye oil field which is estimated to contain 20 mmbbls in 2P reserves will now proceed immediately. Contracts are currently being finalised for the 2015/16 Tungolskoye development drilling programme.

The programme is expected to comprise five horizontal and up to six vertical wells. Drilling is expected to commence in April 2015 and will be completed in Q1 2016. Further details will be announced once the drilling contract is executed.

Tenders have also been awarded for the construction of a pipeline and power line to connect the Tungolskoye oil field back to the Lineynoye central processing facility with contracts currently being finalised. All of the necessary drilling and other supplies for this programme have been ordered and are being delivered to the field. Capital expenditure on this project is included in the License 61 development plan agreed between the License Partners and is fully funded.

“We have also achieved two excellent results at Arbuzovskoye particularly from the A-103 well which has confirmed the southern lobe of the Arbuzovskoye field as well as adding to production, which has grown to 2,450 bopd," added Francis.

The Arbuzovskoye 103 well has been completed and brought into production at an initial rate of 125 bopd. The well was drilled as the maximum reach step out to the south to better define the oil water contact and productivity.

The well encountered 5.0 metres of oil saturated pay in the J1-1 Upper Jurassic interval at a depth of -2,460-metres TVD and confirms oil in the southern lobe of the Arbuzovskoye field. Current plans are to develop the southern portion of the field with a combination of horizontal and vertical wells commencing in 2016.

The Arbuzovskoye 104 well has now been drilled in the northern part of the field adjacent to the A-106 well. The logs indicate that the well has 5.4 metres of net oil pay in the J1-1 Upper Jurassic interval at a depth of -2,467-metres TVD and looks similar to the adjacent A-106 well which is currently producing about 175 bopd.

Petroneft is currently completing the A-104 well and anticipate bringing it on production within a week.

The Arbuzovskoye 107 was spudded on 1 February 2015 and is expected to take approximately four weeks to drill. It is located north-west of the A-103 well.

Total production from Licence 61 is currently about 2,450 bopd.

The drilling rig for the Sibkrayevskoye No. 373 well is currently being erected. It is expected that drilling will commence later this month.

Work is well underway on the programme to acquire 1,000 kilometres of high quality 2D seismic data across the Sibkrayevskoye oil field and other fields and prospects in the northern portion of Licence 61.

The main acquisition of data will continue until April with final interpreted results being available in Q3 2015.

This will help formulate our work programme beyond the current drilling campaign at Tungolskoye and Arbuzovskoye in order to develop the Sibkrayevskoye oil field which is estimated to contain 53 mmbbls in 2P reserves.

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