14th Dec 2015 10:07
LONDON (Alliance News) - Volga Gas PLC said Monday that the Yuzhno Mironovskaya exploration well in the Volga Region of Russia is being plugged and abandoned, whilst a sidetrack to the Vostochny Makarovskoye #4 well has been hooked up and ready to be put on production.
Volga Gas said that, with efficient well drilling, the total cost of the Yuzhno Mironovskaya well was limited to around USD800,000.
Meanwhile, operations on the Sobolevskaya-11 and Uzen-8 wells have both been temporarily suspended. The company was drilling sidetracks on both non-producing oil wells with the aim of recovering production. However, it encountered "significant mechanical difficulties" at both wells.
At Sobolevskaya-11, the company is in an ongoing contractual dispute with the drilling contractor. Subject to a "satisfactory resolution" it plans to complete drilling of this well in the first quarter of 2016. At UZen-8, Volga thinks a re-drill will be required, and for the time being this project is being deferred.
"It is pleasing to achieve the important production target with the new well on the VM field. With the completion of the VM#3 well, which is already drilled but awaiting tie-back, the group is well placed to reach an eventual plateau of 1 million cubic metres of daily gas production from the VM and Dobrinskoye fields," said Chief Executive Andrey Zozulya in a statement.
"The results from the exploration well and delays to the sidetracks are disappointing. However, recent changes in the management of drilling contractors are expected to improve efficiency, as we have seen at Yuzhno Mironovskaya, and we will update the market once we have clarity on the timing for completion of these wells," Zozulya added.
Shares in Volga were untraded Monday morning at 34.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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