Drilling success in Timano Pechora results in new oil production records
The opening of the North- and Lek Kharyaga oil fields in the Timano Pechora region in Russia resulted in West Siberian Resources Ltd reaching a new daily oil production record of 31,600 barrels at the end of July 2007. Total July production is expected to exceed 900,000 barrels (754,491 barrels) for an average of approximately 30,000 barrels per day (24,338 barrels per day).
West Siberian Resources Ltd has successfully drilled and completed several wells at the North- and LEK Kharyaga oil fields in the Timano Pechora region. Both fields have been opened up for commercial production.
At Lek-Kharyaga, the first oil well was completed at a rate of 1,800 barrels per day which significantly exceeds internal expectations. Field evaluation and preliminary 3D seismic interpretation results show a significant increase in the field size and a net oil pay of 25 meters as compared to previously estimated 10 meters. A significant reserve upgrade is expected. One drilling rig is active in the field with the objective to drill and complete 4 production wells by yearend 2007.
At North Kharyaga, 5 wells have been drilled. To date 4 wells were put into operation. These new wells produce between 250 and 1,900 barrels of oil per day with an average production in July 2007 of 800 barrels per day. Production rates, which exceed internal expectations by more than 100%, and drilling results indicate that the field’s oil reserves will be upgraded. The reserve increase will be determined following the interpretation of the field’s 3D seismic data, which is planned to be completed during the third quarter 2007. Development activities continue at the field with active 2 drilling rigs. The plan is to complete a total of 14 production wells by the end of 2007.
“We are reaching new production records as our technical team once again has proved its capabilities. Development results in Timano Pechora are really encouraging. This is where we have our largest assets and they are growing”, Maxim Barski, Managing director of West Siberian Resources Ltd said in a statement and added “Oil prices are also at record levels. In July, we have sold our increasing volumes of crude at an average net back price of USD 35.”
The Timano-Pechora basin contains identified reserves of 9 billion barrels of oil. More than 170 oil and gas fields have been discovered in the region. The basin is a mature petroleum province, but contains areas which have received relatively little exploration. WSR holds five exploration and production licenses in the region: Middle Kharyaga, North Kharyaga, Lek- Kharyaga, Liginski and Kolvinskoye.