PetroNeft Makes New Oil Find at Cheremshanskaya

PetroNeft, the owner and operator of Licenses 61 and 67, Tomsk Oblast, Russian Federation, announced the discovery of a new oil field in License 67 at Cheremshanskaya.


  • Cheremshankaya No. 3 well discovers two hydrocarbon pools
    • Oil discovery in main Upper Jurassic target
    • Gas/oil discovery in Lower Jurassic target
    • Successful open hole inflow test on both intervals
  • Development drilling at Lineynoye continues to push field boundary further north
  • The hydraulic fracturing program at Lineynoye to commence shortly

License 67 - Cheremshanskaya No. 3

The Cheremshanskaya No. 3 well located on the Cheremshanskaya Prospect in License 67 was spudded on August 28 and has been drilled to its planned total depth of 3,100 m MD. The well was drilled adjacent to the Cheremshanksaya No. 1 well which was drilled in 1962 and was targeting potential "missed pay" in the Upper, Middle and Lower Jurassic intervals.

Preliminary analysis of the core, log and open hole test data indicates that two new hydrocarbon pools have been discovered by the well, one in the Upper Jurassic J1 interval and another in the Lower Jurassic J14 interval. There were no hydrocarbon indicators encountered at the Middle Jurassic J13 interval. Additional testing is required to determine the commerciality of the hydrocarbon intervals including potential productive flow rates and fluid composition, which will each be key elements of development planning. Production casing is now being run and cemented in the well. Once this has been completed, the main drilling rig will be moved and a workover rig will then carry out an extensive step rate drill stem testing program. This process will likely be completed in late 2011.

The Cheremshanskaya No. 3 well is located about 6 km south of the Lomovoye Field which has been developed by Tomskneft (Rosneft). The well is situated near to an all weather road and is accessible year round which would allow early commencement of year round production by trucking oil to market.

Upper Jurassic J1 interval

The primary objective Upper Jurassic J1 interval shows potential net oil saturation of 2.9 m in the J1-1 and J1-2 intervals. The J1-3 interval has 8.1 meters of net reservoir but the initial log interpretation indicates it is likely to be water saturated despite the presence of hydrocarbon indications in the core in the upper part of the interval. A short open hole test over the J1 interval produced an inflow of drilling mud filtrate and small amounts of oil at a rate of 72.5 bfpd. No formation water was produced during the test.

Lower Jurassic J14 interval

The Lower Jurassic J14 interval shows potential net gas/oil saturation of 8.6 m. A short open hole test over this interval confirmed gas and oil inflow but the gas rate could not be measured because of the nature of the test.

Once production casing has been run and cemented in the well, the main drilling rig will then be moved to the Ledovaya 2a location.

License 61 Development Drilling program

Two further successful development wells have been drilled from Pad 2 at the Lineynoye oil field. Lineynoye 210 was drilled along the western edge of the J1-2 channel system and initial analysis indicates the well contained 4.0 m of net oil pay. The intention is that after a period of production the well will be converted to a water injector for field pressure maintenance. It is expected to be an excellent injector after fracture stimulation.

The Lineynoye 212 well was drilled as the north-easternmost well in the field, near to the structural saddle between Lineynoye and the Emtorskaya high to the north. The well encountered 2.1 m of net oil pay in the J1-1 sandstone and confirmed the oil water contact at -2,435 m TVD. The J1-2 interval in this well contained over 21 m of sandstone but it is located below the oil water contact. The well can initially be used as an oil producer but eventually it will be converted to a water injector for pressure maintenance in this portion of the field.

The Pad 2 drilling results indicate that the field wide oil water contact (owc) is at least 5 meters deeper on the structure than originally interpreted, providing further evidence that the Lineynoye field extends much further north than previously estimated, possibly connecting the structures of the Emtorskaya high to Lineynoye. A thick channel sand sequence in the J1-2 interval in well 212 indicates that this system extends to the north and should be present along the eastern flank of the Emtorskaya High. This will be a priority area for future exploration/delineation and development.

The hydraulic fracturing program at Lineynoye is due to commence shortly. The service company has demobilized its equipment from the previous site and is in the process of moving to the Lineynoye oil field. An update on the results of the program will be provided in early December.

Dennis Francis, Chief Executive Officer of PetroNeft Resources commented, "We are pleased to announce another new discovery at Cheremshanskaya. Initial results are encouraging, however, the field will require further detailed testing and delineation to determine its ultimate size and productivity. The field is located in an area of well developed infrastructure so it may be possible to fast track pilot production once we complete the testing program.

It has been a year of substantial progress on the exploration front with the very significant oil discovery at Sibkrayevskaya and follow-up discoveries at North Varyakhskaya and Cheremshanskaya. We look forward to completion of the final well in our exploration/delineation program at Ledovoye."