PetroNeft Resources, the owner and operator of Licenses 61 and 67, Tomsk Oblast, Russian Federation, has provided an update on its operations. The first of its nine planned production wells to be drilled in 2010 has been spudded at the Lineynoye oil field in License 61.

The 2010 production drilling program will involve the drilling of nine wells from the current location utilizing a rail-mounted production drilling rig designed to facilitate the drilling of multiple deviated wells with close spacing at the surface, the company said.

Once the first well is drilled and cased, the drilling rig will move 5mt along its rails and immediately commence drilling the second well of the program. This will be repeated for the third well, after which the rig will be skidded 15mt to drill the fourth well while a workover rig completes the first three wells and installs electric submersible pumps (ESPs).

Thereafter, a 15mt skid will be inserted after the fifth and seventh wells to allow pairs of wells to be completed together, thereby optimizing both the timing of wells coming on production and the size of the drilling pad.

All tubulars, supplies and consumables for the nine well production drilling program are also on site. First production at the Lineynoye oil field remains scheduled for the third quarter of 2010.

The construction of the 60km pipeline from Lineynoye to Kiev-Eganskoye is progressing to the plan. The pipe has been laid out along the route and construction of the pipeline is due for completion in mid April, well within the weather window required for this work. Final hydro-pressure testing of the line is scheduled for June 2010.

Most of the equipment required for construction of field facilities at Lineynoye has been procured and mobilized to location. This process should be complete by the end of March. Construction of these facilities has commenced and is due for completion in time to commence year-round production in the third quarter of 2010.

The facilities include basic oil processing, oil storage, gas powered generation and communications systems as well as improved and enlarged crew accommodation and catering facilities.

Dennis Francis, CEO of PetroNeft Resources, said: “Thanks to the efficient and carefully synchronized planning of our infrastructure and drilling program and the commitment of our staff and contractors over the winter, all aspects of the Lineynoye Field development project are progressing on or ahead of schedule.”