Licence 61 (Tungolsky)


PetroNeft Resources wholly owned subsidiary «LLC Stimul-T» won the State Auction for the Tungolsky Licence No. 61 in the Tomsk Region of Western Siberia and acquired the Block in May 2005.

Highlights

  • Tungolsky Licence 61 is located on the east side of the Ob River in the least explored oil bearing region of the Tomsk Oblast.
  • The large 4,991 km² Licence contains 7 oil fields and over 25 identified prospects and leads.
  • PetroNeft has thus far acquire 1,055 line kms of seismic data and drilled 10 exploration/delineation wells which exceeds the Licence work programme requirement and was completed ahead of schedule.
  • Ryder Scott currently estimates the 2P reserves at 117.05 million bbls which includes 53.03 million bbls at Sibkrayevskoye.
  • The 2010 development plan including the construction of 9 development wells, central processing facilities and export pipeline was executed on time and on budget.
  • Production commenced on schedule in Q3 2010 and after fracture stimulation peaked at 3,000 bopd at the end of Q1 2011.
  • 2011 work programme consisted of expanding the central process facility capacity to 14,800 bpd, construction of 2 new pads, drilling of 14 development wells and three exploration/delineation wells.
  • In August 2011 a sixth field was discovered at Sibkraevskaya. It contains about 50 million bbls of 2P reserves and is the largest single discovery made by PetroNeft to date.
  • In September 2011 a seventh oil field was discovered at North Varyakhskoye which contains about 2 million bbls of 2P reserves.
  • In mid 2012 the Arbuzovskoye oil field was brought into production following the construction of 10 km of pipeline from Lineynoye to Arbuzovskoye and the drilling of new production wells at Arbuzovskoye
  • The 2013 work programme consists of the drilling of further production wells at Arbuzovskoye. Additional delineation wells at Sibkravevskoye and West Lineynoye are also possible.
Tomsk Oblast
Licence 61
Licence 61 Development Plan

Location

Licence No. 61 (Tungolsky) is located in the northern end of the Tomsk Region in Alexandrov administrative district. The climate is strongly continental, characterised by long cold (as low as −50°C) winters and short warm summers. Blizzards and heavy snowfalls persist from October till April. The average soil freezing depth is 1.2 m. The maximum frost penetration depth in swamps is 0.5 m. The snow cover reaches 1.5 m. The heating season lasts from mid-September until May. The Licence area is uninhabited, with access via winter roads of compacted snow, or by helicopter or waterways. A long winter makes for greater progress in the exploration and development of the oil fields.

Seismic acquisition activities take place in the winter months. Drilling activities can take place year round provided the rig, supplies and heavy equipment have been moved to site during the winter months.

Brief History

Exploration on the Tungolsky Licence began in the 1960s with the acquisition of single trace analogue reflection seismic data. Common Depth Point (CDP) seismic data was acquired for the first time beginning in 1974. A total of 2,054 km of CDP data was acquired in the licence from 1974 to 1990. A total of 14 wells were drilled on Licence 61 during the Soviet era between 1970 and 1989. Two of these wells led to the discovery of the Lineynoye and Tungolskoye oil fields.

In 2005 PetroNeft engaged local consultants to reprocess and reinterpret all of the vintage seismic and well data on the Licence using modern technology. The combined reinterpretation of the 14 wells and seismic data allowed the Company to determine those structures with high potential for containing commercial quantities of oil.

The Company subsequently acquired 1,055 line km of high resolution CDP seismic data and drilled 10 exploration/delineation wells. As a result of these efforts the two Soviet era fields at Lineynoye and Tungolskoye have been successfully delineated and new oil fields have been discovered at West Lineynoye (2007), Kondrashevskoye (2008), Arbuzovskoye (2010), Sibkrayevskoye (2011) and North Varyakhskoye (2011).

Ryder Scott currently estimates the 2P reserves for the Licence area at 117.68 million barrels including the field discovery at Arbuzovskoye but Sibkrayevskoye will only be included in the year end 2011 Ryder Scott report. The current Russian registered GKZ C1+C2 reserves are 105 million barrels which does not include the new field discovery at Sibkrayevskoye.

Source rocks are present in the Lower Jurassic Togur and Upper Jurassic Bazhenov formations. The fields discovered to date on the Licence area have been in Upper Jurassic sandstone reservoirs. However, wells have successfully tested oil in Middle Jurassic and Lower Cretaceous sandstones in the adjacent Licences to the east and west. A 2008 study of vintage log data from old Soviet wells indicates potential missed pay in both Middle Jurassic and Cretaceous intervals in two wells in the southern part of the Licence area.

Licence and Work Programme

The Licence is a 25 year exploration and production licence that is valid until 2030. The minimum work commitments under the Licence were to acquire 1,000 km of new 2D seismic data within three years and drill six wells within six years. Production of hydrocarbons should commence within two years of approval of commercial reserves. These commitments have all been met.

Arbuzovskoye Development
Lineynoye Field — February 2011
Lineynoye Updated Structure Map — February 2011

Lineynoye Development Status

In 2010 the Company started the development of the Lineynoye oil field with the construction of nine development wells, central processing facilities and 60 km export pipeline. Production commenced on schedule in late August 2010 and reached 3,000 bopd in Q1 2011 following fracture stimulation. Water injection for pressure maintenance commenced in June 2011.

The 2011 work programme consisted of expanding the Lineynoye central process facility to 14,800 bpd, construction of 2 new pads, drilling of 14 development/delineation wells. Ten of the Pad 2 wells were fracture stimulated in November 2011. The Pad 2 wells have not responded nearly as well as the Pad 1 wells to fracture stimulation and a number of studies are underway to see if we can better understand these differences and how to deal with them (see Lineynoye and West Lineynoye Field).

Arbuzovskoye Development Status

The Pilot Production Design for the Arbuzovskoye oil field was approved by the Russian State Central Development Committee in November 2011. A 10 km pipeline and utility line were constructed from the Lineynoye central processing facility to the Arbuzovskoye field in Q1 2012. Six development wells were drilled at Arbuzovskoye in 2012/13 with plans in place for at least three more in the northern end of Arbuzovskoye in 2013 and possibly an additional six in the southern end in 2014.