Oil and gas development and production company RusPetro has achieved current production volumes of 5,600 barrels of oil per day (bpd) at July 9th, although said 800 bpd from two existing wells have been temporarily suspended due to maintenance work.
Production is expected to increase strongly as new wells come online and existing well capacity is restored to production. The company said it is confident it will achieve its target of an exit rate of 10,400 bpd for 2012.
Since the start of the year 14 wells have been drilled, five of which have been fractured and completed. Four further wells are currently being drilled, with initial drilling to completion time now reduced, with further reductions expected in the second half. The pace of fracturing has picked up considerably, the firm said.
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Initial sales by rail have achieved a premium of $3.30 per barrel to the Transneft sales price net of transport costs. While initial volumes are not material, the potential capacity for this sales channel currently stands at around 3,500bpd with the capacity expected to increase considerably towards the end of 2012.
RusPetro's application for a 50 year licence extension for the north-eastern part of the field on the Polyanovsky license block has been accepted and the firm expects this to be granted in December.
In a statement the company said: "We remain confident to achieve our target of 10,400 bpd as an exit rate for 2012. We have now put in place the team, equipment, contractors and infrastructure required. The second half is expected to see a pick-up in the rate at which wells are brought on-stream as the rigs gain efficiencies and the recently added second fracturing fleet and coiled tubing unit reduce completion times.
"The senior additions to our geology department give us the experience and depth of knowledge required as drilling accelerates. Waterflooding, initiated in the western area of the field, should have an initial impact on production volumes in the first quarter of 2013."
The share price leapt 8.03% to 144p by 08:37.
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