Rustamovskoye / Ayazovskoye
Petrosibir’s first license
Petrosibir acquired the Rustamovskoye license in 2007. The company has since then completed a successful exploration program and taken the field into production. The company has collected a total of 167 kilometers of seismic and drilled four wells on this field. All of the wells have been taken on stream. The 3P reserves amount to 48 million barrels of oil and gas.
The original Rustamovskoye license has been divided into two licenses: Ayazovskoye – production license and Rustamovskoye – exploration license. Both licenses are held by Petrosibir’s wholly-owned subsidiary ZAO IngeoHolding.
Record flow rate from the fourth well
The fourth well drilled on the Rustamovskoye field was taken into production with an initial flow rate exceeding 300 barrels per day. The well encountered oil in the same sandstone formation as the three previous wells are producing from. The oil-bearing formation came in deeper than expected, and as a result the well has significantly extended the known oil column. The reservoir properties are of high quality with nine meters of net pay, compared to up to three meters in previous wells. The thicker net pay allows for higher well productivity as well as better conditions for future horizontal drillings with superior well economics.
Well #12 implications
Economy
- Cash flow from oil sales covers operating expenses and contributes to the investment program
- Larger production leads to higher profitability per barrel
- Increased stability and flexibility in raising future capital. Opens up debt financing opportunities
Business
- Oil from the Rustamovskoye field is currently sold at wellhead and transported by truck. Increased oil volumes provide opportunities to pipeline sales with higher profitability per barrel
- Higher net pay also provides better opportunities to drill horizontal wells with better economics (fewer wells, lower operating costs, larger production within a shorter period of time)
Reserves
- Thicker net pay and higher oil columns increase the oil volumes
Development program to increase production
The company intends to drill new production wells in order to increase the field’s production.
The area is accessible by road around the year. A pipeline crosses the license area, with a connection point 10 kilometers from the boundary of the block. When the volume of Petrosibir’s production grows, the company may apply for access to this pipeline. Currently, the oil produced is transported by truck. Power supply is secured through the local electricity grid that is connected to the village Ust-Yuguz.
Production tax break
Since the field’s registered reserves are lower than 35 million barrels and it is a greenfield that has recently been taken into production, the field has qualified for a tax break of approximately $10 per barrel. This significantly enhances the field’s profitability and cash flow.