Oct. 3 (Bloomberg) -- Shelton Petroleum AB advanced to its highest price in at least ten months in Stockholm trading after the oil-exploration company said flows from a fourth well in Russia were much higher than at previous wells in the field.
Shelton added as much as 23 percent to 41 kronor, its highest level since at least Nov. 20 and steepest intraday advance since Sept. 17 this year. They rose 22 percent to 40.7 kronor as of 12:25 p.m. local time, with volume at more than five times the daily average in the past three months.
The company’s fourth well on the Rustamovskoye oil field in Russia has been taken into production with an initial flow rate of more than 300 barrels per day, it said in a statement today. That’s “significantly higher than the field’s previous wells,” it said. The combined production of Shelton’s Russian and Ukrainian operations now total some 1,000 barrels per day.
“We have two surrounding fields that also have potential but focus has been on the Rustamovskoye field and that’s where we have the immediate focus to increase production,” Shelton Chief Executive Officer Robert Karlsson said in a telephone interview today. “What’s a lot of fun with this latest well is that it strengthens our view of the field. All else equal, it increases the potential to extract reserves from the field.”
Shelton’s Rustamovskoye field, which produces 700 barrels per day, is the only of its three licenses in Bashkiria in the Volga-Urals area in Russia that produces oil, Karlsson said. The company also has a joint venture in Ukraine with oil and gas companies Ukrnafta and Chornomornaftogaz, he said.
“If we can repeat these results in future drillings, the company will be able to increase its reserves substantially at the next reserves update,” the Stockholm-based oil explorer said in the statement. “Opportunities to successfully develop its three fields in Bashkiria will increase manifold.”
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