Imperial Energy Begins Production at Block 77 in Western Siberia
Imperial Energy has moved into production as scheduled and has already sold its first oil. This marks a significant transition of Imperial into an oil producer and provides a solid platform for future growth.
- Production commenced at rates in line with expectations from two wells on Block 77, Tomsk, Western Siberia, being wells Snezhnaya 135 and Dvoinoye 2
- Further five wells due to come on stream by end of April 2006
- Currently on target for production in May of between 1,500 and 2,000 BOPD
- Oil sales already made to domestic market at competitive prices
- Significant investment in fraccing equipment, all terrain transport vehicles and production rig generators to ensure all year round working
- Targeting production of 20,000 BOPD by end 2008
Early production is now being achieved from two wells on Block 77, Tomsk, Western Siberia, being wells Snezhnaya 135 and Dvoinoye 2. Initial production rates are good and in line with expectations with oil currently being sold into the domestic market at net back prices at least as good as those for export.
By the end of March it is expected that Snezhnaya 133, Block 77 will come on stream as a producing well and also that Aikagalskaya 252, Block 69, Tomsk, Western Siberia will be on production testing. In addition during April, the four new wells on the Snezhnaya field are expected to be fracced and brought on stream increasing production from Block 77 to between 1,500 and 2,000 barrels of oil a day in May.
Imperial is currently on track to achieve target production in line with its previously stated objective of 20,000 BOPD by the end of 2008. Plans in this regard include having 18 producing wells on the Snezhnaya field by early 2008, production from the Aikagalskaya field, Block 69 and at least one more of Imperial's fields.
At a total cost of approximately US$9 m the company is investing in its own fraccing equipment, all terrain tracked transport vehicles and two sets of production rig generators thereby securing these essential services for the exclusive use of Imperial and giving Imperial the flexibility to operate more efficiently and effectively throughout the year. Plans for pipelines are also being expedited.
The previously announced extensive appraisal drilling, exploration and additional seismic program is continuing on Imperial's fields and certain of its prospects. Further announcements in this regard will be made throughout the coming months.
Peter Levine, Chairman, Imperial Energy Corporation PLC commented:
'This is a key development for Imperial, transforming us into a revenue-generating exploration and production business.
With production now on-stream, our asset base of 250 mmbo 2P (P50) reserves and
material exploration upside we confidently look forward to further significant
advances in both production and exploration.'
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