Yesterday after the markets closed, PrimeGen Energy Corporation (OTC: PGNE) issued a press release announcing the initial production for the Rod 10-21, the first well at the Company's Rodnikovskogo, Russia, property. The well commenced commercial oil production on November 25, 2009, and the Company has received production results for the first 6 days. Total oil produced and sold was 15,720 barrels with an average daily production rate of 2,620 barrels per day.
The Rod 10-21 well is the first of a multi-well program drilled at Krasnoarmeiskome District, Saratovskoi Oblast in Russia by PrimeGen. The 2009-10 development program calls for the drilling of a minimum of 42 wells to develop the field. When fully developed, the 42 wells could yield a daily production rate at Rodnikovskogo of 110,000 barrels per day.
Using current pricing for Rodnikovskogo crude oil, PrimeGen has confirmed that the new well alone has generated $1.2 million in revenue or a projected $71.7 million per year. Currently, oil at Rodnikovskogo has been priced at over $75.00 per barrel.
It was just two weeks ago that PrimeGen reported the initial production for the Kochmesskoye # 7 well at Timan-Pechora, Russia. The well commenced commercial oil production on October 26, 2009, and the Company has received production results for the first 20 days. Total oil produced and sold was 28,840 barrels with an average daily production rate of 1,442 barrels per day.
The Kochmesskoye # 7 well is the seventh of a multi-well program drilled at Timan-Pechora by PrimeGen. The 2009-10 development program calls for the drilling of a minimum of 30 wells to develop the field. According to the press release, when fully developed, the 30 wells could yield a daily production rate at Timan-Pechora of 35,000 barrels per day. The fourth well of the project was drilled and completed on August 24, 2009, and resulted in setting a new production record for the field of 1,670 barrels of oil per day. In addition, well numbers 1 through 6 are producing at full capacity.
The press release states that using current pricing for Timan-Pechora crude oil, PrimeGen has confirmed that the new well alone has generated $2.0 million in revenue or a projected $36.8 million per year. Currently, oil at Timan-Pechora has been priced at over $70.00 per barrel.
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