Oil and gas explorer PetroNeft has suspended its testing and well re-entry program in Russia due to the coronavirus pandemic, after finding a gas deposit in a previously abandoned Russian field, The Irish Independent reports.
The Dublin-listed company operates in the Tomsk Oblast region of Russia, where it owns and operates 50pc of Licences 61 and 67.
In a trading update, PetroNeft said it had re-entered well C-3 in March, located on the southern part of the Cheremshanskoye field.
Following completion of the test and evaluation of the results, the company now interprets the J14 in the C-3 well to be a condensate rich gas cap. In total 202 barrels of fluid was produced during the tests.
PetroNeft said it is now studying all the information gathered to decide on the next steps.
It added that it is now looking at moving up the well to re-test the J1-1 and J1-3, which it believes will be able to produce commercial quantities of oil.
“Whilst we are disappointed that we did not flow hydrocarbons at commercial rates, we are pleased that we managed to establish that the J14 interval is a liquids-rich gas-filled reservoir,” said David Sturt, CEO of PetroNeft Resources.
“Initially we had planned to progress up the well to test the Upper Jurassic J1-1 and J1-3 intervals to establish commercial production before moving on to test the L-2 and L-2a well on the Ledovoye field. However, in light of the current economic situation combined with the coronavirus shutdowns in Russia, we believe it is prudent to suspend operations for now,” he added.
Last December the company raised $2.12 million in a share placing. At the time it said the funds raised are mainly being used to cover costs associated with the company’s investment program this year.