DUBLIN AND London-listed exploration firm Petroneft Resources says it has started year-round oil production at License 61 in Russia’s Tomsk region. The area may produce as much as 4,000 barrels of oil a day by the end of the year, the company said.

Field production has been 1,100 barrels of oil in the first two days of production, and flow rates are expected to increase as drilling fluids are cleared out and electric submersible pumps are optimised. Three additional wells will be brought on production over the coming week, the firm said.

Drilling of the seventh of the planned nine production wells at the Lineynoye oil field has now been completed ahead of schedule. Preliminary log and survey data indicate the well encountered the thickest net pay to date in the development programme. The well was drilled in 14 days, the least number of days in the current drilling programme.

Production casing has been run in the well and cemented. The drilling rig has been moved along its rails and drilling of the eighth well has commenced.

“We are delighted to announce that the Lineynoye phase 1 project has achieved first year-round oil production. This has been a monumental accomplishment, achieved in less than one year of the funding for the project,” said Petroneft chief executive Dennis Francis.

Licence 61 was acquired by Petroneft in May 2005. In May of this year the group announced a $30 million debt facility with Macquarie Bank to provide working capital for the group’s activities on Licence 61 and Licence 67, which is also in the Tomsk region.