Matra Petroleum (LON:MTA) hailed the “significant progress” made during the first half of 2011, including the confirmation of good reservoir quality at its flagship Sokolovskoye field with the A-12 sidetrack.
The Russian operating oil firm is now hoping to further improve the commerciality of the field during the rest of the year.
During the six months to end June, Matra achieved production from both the A-12 and A-13 wells at Sokolovskoye.
While A-13 produced a “modest” 3,765 barrels, the production rate is expected to improve with the installation of a down-hole pump.
The company is hoping that increased production from A-13, which is currently shut in, will generate a positive cash flow.
While A-13 flowed oil without significant amounts of water, production from the A-12 well was affected by large quantities of water.
Following an unsuccessful attempt to shut off water in A-12, Matra is reviewing technical data to determine the viability of further remedial action on the well.
Matra noted that A-12 was drilled on the flank of the field and the well penetrated the oil-water-contact (OWC).
"Drilling in the main part of the field is expected to encounter thicker and more porous reservoir sections further up from the OWC. Furthermore a drilling programme designed specifically for production wells will be utilised thereby minimising operational risks,” said managing director of Matra Petroleum Peter Hind.
The company said that the results of the upcoming A-14 well are “the most important factor relating to the field's further appraisal and development”.
A-14 will test the presence of areas with better reservoir characteristics to the north of the existing wells. Matra believes that this well, if successful, will improve the value of the field and help accelerate production.
On the financial side, Matra’s operational losses were reduced from €0.75 million for the same period last year to €0.61 million and pre-tax losses were down from €0.7 million to €0.6 million. Revenues for the first half reached €0.29 million compared to none a year ago.
The company had cash of €1.27 million at the end of the year after raising £1.55 million via a placing in February.