Russia-focused junior explorer Ruspetro reported Thursday that its average production for April was 3,425 barrels of oil per day, compared with first quarter production of 3,479 bopd.
The decline in production was partly attributed to the firm's condensate stream stopping after it suspended production from the Palyanovo license block in January to conserve gas for future sale. There was also a natural decline in oil production from the firm's Pottymsko-Inginsky license.
Ruspetro is continuing to drill its first multi-stage fractured horizontal appraisal well from Pad 23b on the Pottymsko-Inginsky license. Drilling began in April and the pilot vertical well phase has now been completed, confirming the company's structural and reservoir understanding.
Approximately 62 feet of oil-bearing sands have been identified in the Jurassic two and three formations, which was towards the higher end of Ruspetro's expectations.
Meanwhile, Ruspetro confirmed that the Vostochno-Inginsky license, which was due to expire in June 2014, has been extended by 20 years to June 2034. The firm had a cash balance of $8 million as of April 30, 2014, and it renewed its prepayment facility with Glencore Energy UK in March.
Ruspetro CEO John Conlin commented in a company statement:
"While 2013 was a year of reassessment for Ruspetro, 2014 should be a year of progress. This is underlined by the commencement of our planned horizontal appraisal drilling program with first production expected in July. We are pleased that the Vostochno-Inginsky license has been extended in response to our application. We also thank Sberbank and Glencore for their continued support."
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