RusPetro On Target to Beat 10,000 Barrels Per Day in Siberia
West Siberia-focused RusPetro said Thursday that it is confident that it will deliver on its target of 24 wells to be drilled by the end of this year, and will achieve its 2012 year-end production target of 10,400 barrels of oil per day – compared to a year-to-date average production of 4,000 bpd.
The reason for RusPetro's confidence, it said, was that because it is now drilling wells at a significantly faster pace than during the first quarter of the year and already has four rigs in operation on its license areas in the Khanty-Mansiysk region of the West Siberian basin.
Commenting on a trading update released by the Russian company, investment bank Mirabaud Securities stated in a research note that the group's year-end 10,400 bopd production target "may start to look conservative". RusPetro, added Mirabaud, is "on track to have 12 wells tied back by the end of June, with seven additional completions next month" to add to the four wells it now has in operation in the northeast and west of the Krasnoleninsk field, where it owns three production licenses.
Key highlights from RusPetro's update included a 10-percent increase in proved oil reserves from 157 million to 173 million barrels and a 7.5-percent increase in proved and probable reserves from 1,437 million barrels to 1,545 million barrels.
RusPetro' – whose stock is listed on the London Stock Exchange – saw its revenues for the first quarter of 2012 increase 28 percent to $19.2 million over 4Q 2011; the increase compared with 1Q 2011 was 447 percent.
"We have started 2012 with excellent progress on infrastructure build out and encouraging drilling results where we continue to see productive sands as modeled," said RusPetro Chief Executive Donald Wolcott in a statement. "We have completed significant infrastructure projects ahead of time and under budget, demonstrating our commitment to delivery of the goals set out at the IPO."
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