Kulczyk Oil tests M-20 well at 5.3MMcf/d

KUB-Gas, a 70%-owned Ukrainian subsidiary of Kulczyk Oil (KOV PW), tested its new M-20 well at the 5.3MMcf/d, Kulczyk announced yesterday in a press release. The well will be put on stream in 4Q12. The company’s average production in August amounted to 22.9MMcf/d (16.0MMcf/d net to KOV), up 6.5% compared to April’s level, as the M-21 well started commercial production at a gross rate of 1.7MMcf/d. In the same report, the company informed that the test of NM-1 well indicated potential hydrocarbon accumulation with limited permeability, which will require stimulation.

Roman Dmytrenko: Apparently, the tested yield at M-20 is unlikely be maintained once commercial production starts. The commercial yield of the neighboring M-21 turned out to be 43% less than initial tests. If M-20’s tested yield declines the same 43% in commercial mode, while other wells show stable output, the company will boost gross production 21% in 4Q12 compared to 1H12 to 25.9MMcf/d (18.1MMcf/d net to Kulczyk).