News

Operational results of 2016 in Imperial Energy Group and plans for 2017

Actual oil production of Imperial Energy Group in 2016 is 271,3 th. tons or 70,9% of the approved business plan (382,6 th. tons).

Below are the major reasons for underachievement of planned oil production indicators:

- Failure to carry out a pilot project in Tyumen deposits of Maiskoye field due to lack of contractor to carry out sidetracking jobs with multistage frac;

- The Group was forced to limit oil production at Snezhnoye field in view of changes in limitations for APG utilization;

- Underachievement of planned production indicators with respect to targets from new wells drilled at South Maiskoye field, which was related to the Contractor failing to meeting the drilling schedule. On the whole the project of drilling of the Southern part of the deposit can be considered successful. The acquired well information and seismic activities allowed to characterize East-Maiskaya structure for further prospect drilling.

Additional studies carried out with respect to Tyumen deposits in exploratory wells of South Maiskoye field can be considered as another positive result of 2016. As a result of drilling activities, it is expected that oil productive area of J14-15 shall increase.

The approved business plan for 2017 includes oil production of 319,8 th. tons.

For the first time since 2008, the Group is coming back to Festivalnoye field with development drilling plans: one well is planned with a horizontal section of 700 m.

At Maiskoye field a pilot project is planned to be implemented in Tyumen deposits which includes sidetracking (horizontal, 900 m) with the following multistage frac. Implementation of this project shall allow the Group to commence commercial development of hard-to-recover reserves in Tyumen reservoirs with new technology inputs.

In order to confirm the oil bearing capacity of J1(3-4) of East-Maiskaya structure, the Group has planned to drill one prospect well, which will give the breakthrough for development drilling in 2018. Another prospect well is planned to be drilled in East-Festivalnaya structure. Re-testing of prospective Paleozoic deposits is planned in Hylkinskaya area.

On the whole, the Group’s exploration program allows to completely fulfill its license commitments and prepare new zones of interests for development drilling in 2018.