Russia: Volga Gas Disappointed on Yuzhny Romanovskaya-1 Well
Russian explorer Volga Gas has been left disappointed at its Yuzhny Romanovskaya-1 (YR-1) well after failing to encounter any hydrocarbons at the site.
The exploration well was drilled to a vertical depth of 4,903 metres but did not encounter any resources. The company will now plug the well and plans to abandon operations on YR-1 after logging has been completed.
"Clearly the result of the exploration drilling on the YR-1 well is disappointing as this was considered to be a relatively low risk target," Chief Executive of Volga Mikhail Ivanov said.
"However, the resource potential in this licence was not significant and was not included in C3 resources previously disclosed by Volga Gas."
The company encountered greater success at a second well, the Vostochny Makarovskoye-30 (VM-30) well due to higher than expected levels of condensate. This well, which was perforated at two intervals in the Bobrikovskiy sandstone formation at depths of approximately 1,600 metres.
The well had previously tested for successful commercial flow rates and has now been recompleted as a production well. The company says it expects the condensate levels, which were discovered following sample testing, will enhance the production economics of the well.
A new production test, which is expected to take two months, is due to be carried out on the well presently. This testing will be performed once the well is connected to test separators at the site.
"We are pleased to have successfully completed the workover of well #30 which will add to the gas production in Q3 2012," Mr. Ivanov said.
"The presence of a significant proportion condensate in the gas was not anticipated before we undertook this operation and it materially enhances the value of the production that will be derived from the well. While this well does not represent a significant increase in the reserve potential of the VM field, it will be capable of delivering a useful short term increment to the group's production and cash flow."