PrimeGen Energy advised that as part of the recently announced participation agreement regarding the Company's oil and gas project in Timan-Pechora, Russia, the operator has notified PrimeGen that drilling of a third well commenced on July 31, 2009.
The third well has been titled as the "Kochmesskoye #3" and anticipated to reach a target depth by Monday, August 10, 2009. As part of the accelerated drilling program, preparations are underway on the fourth well site to begin immediate drilling shortly after the completion of the third well. The first well of the project was drilled and completed in the second quarter of 2009 and resulted in setting a new production record for the field of 1,200 barrels of oil per day. The second well's average production flow has been 920 barrels of oil per day. PrimeGen expects that an additional 4 wells will be drilled during the third quarter of 2009.
Using current pricing for Timan-Pechora crude oil, PrimeGen has now projected that both wells have generated $4,100,000 in revenue to date or $50.4 million on an annual basis. Currently, oil at Timan-Pechora has been priced at over $65.00 per barrel.
Company President Robert Charlton comments, "With continued drilling successes in Timan-Pechora, PrimeGen has strong momentum going into the second half of the year."
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