6th Oct 2020 11:01
(Alliance News) - Volga Gas PLC on Tuesday announced a potentially significant discovery of a new oil field in its ongoing exploration drilling programme in the Volga region of Russia.
The oil and gas exploration group said drilling on the Novo Kurilovskiy prospect reached a depth of 1,200 metres, during which the the company saw signs of a "potentially significant" oil discovery.
Volga Gas said: "While the initial target interval, the cretaceous Aptian formation at a depth of 900-1,000 metres, had no shows of hydrocarbons, in the deeper Jurassic interval between 1,144 and 1,218 metres a total of 60 metres of oil bearing pay was identified with cores taken during drilling.
"Since the potential pay thickness is in excess of the calculated depth of the structural closure from seismic mapping, this indicates a potential stratigraphic element to the prospect, with implications of significant upside in terms of gross oil in place."
The commercial significance of this discovery has yet to be determined, the company noted, however.
Volga Gas additionally said one of its wells in the North Uzen structure will be subject to flow testing after undertaking a fracture stimulation operation which the company considers necessary as the oil pay is inferred to be of low permeability.
Volga Gas shares were up 16% at 27.75 pence each in London on Tuesday morning.
By Greg Roxburgh; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
VGAS.L