AIM-listed PetroNeft, owner and operator of Licences 61 and 67, Tomsk Oblast, in the Russian Federation, has claimed that 2016 was a difficult year but there is reason to be optimistic about future developments.
The firm said it had “significant” success in horizontal drilling at its South Arbuzovskoye prospect.
However the result of the 10km step-out S-374 well on Sibkrayevskoye was “disappointing”.
Gross production from Licence 61 last year increased 35% compared to 2015, topping 990,931 barrels of oil.
Drilling at Sibkrayevskoye No. 375 is due to commence in July 2017 with an active work programme planned at Licence 61 in 2017 and 2018
Dennis Francis, chief executive officer of PetroNeft, said: “2016 was a busy and challenging year for PetroNeft, during which the company carried out an extensive drilling programme at Licence 61, raising production and gaining further understanding of our development opportunities.
“The year ahead continues to present challenges but also some grounds for optimism. We have great support in our much valued partnership with Oil India.
“Together we see opportunities to strengthen and grow our Company through development and possibly acquisition. In the near term, we look forward to the S-375 well, which is due to commence in the coming weeks and is being drilled about 2km from existing wells, which could add material proved (P1) reserves and determine our 2018 Sibkrayevskoye development plans.”