PetroNeft Resources finds new Russian well

21st Sep 2011 07:51

Petroneft Resources, the Russia-focused oil company, says it has discovered a new oil well in Siberia, though it is not yet sure whether the well is commercially viable.The discovery at its North Varyakhskaya asset is the seventh such discovery. The company says that at North Varyakhskaya drilling encountered around 2.2 metres of net oil pay, but more testing is necessary to confirm whether the well is commercially viable. The initial flow rate was 36 barrels of fluid oil per day although so far the firm believes that to make money it will have to use the technique known as "fracture stimulation".Dennis Francis, Chief Executive Officer of PetroNeft Resources, commented: "We are very pleased to announce a new discovery at North Varyakhskaya. The field, while small in comparison to Sibkrayevskaya, is important because it can be easily tied into already planned infrastructure at minimal cost and will also qualify for a reduced Mineral Extraction Tax.Meanwhile, the firm continues drilling at its Lineynoye prospects, where several wells have encountered materially thicker pay beyond the originally expected northern field boundary, and have pushed the observed field oil-water contact at least 5 metres deeper.One additional well is now scheduled to be drilled to the north of the last two wells to be drilled at Lineynoye.BS