Junior energy firm PetroNeft announced Tuesday, in its annual results statement for 2014, that it expects a significant boost in production this year.
The anticipated production increase follows PetroNeft’s farm-out agreement in license 61, completed in July 2014, to Oil India Limited for a price that could rise up to $85 million. These resources are being used to fund a major well drilling campaign and have resulted in PetroNeft becoming debt-free.
Production from license 61, located in Russia’s Tomsk Oblast region, totalled 728,826 barrels in 2014, although the farm-out agreement is expected to further develop the potential of the region.
PetroNeft Resources CEO Dennis Francis commented in a company statement:
“2014 was a transformative year for the company during which the greatest achievement was the license 61 farm-out to Oil India Limited announced in April 2014 and completed in July 2014. The farm-out gave us a strong industry partner seeking to build a strategic position in Russia as well as the financial resources to develop the significant potential of license 61. We are currently producing from less than 15% of our reserve base and the substantial investment in infrastructure made in recent years leaves us well placed to deliver significant and profitable growth now that we have satisfactorily resolved the funding challenges of recent years. Drilling has recommenced at license 61 and significant production growth is expected in 2015.”
Have a news tip? Share it with Rigzone!
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
More from this Author
Most Popular Articles
From the Career Center
Jobs that may interest you