International Petroleum Limited has discovered a second oilfield at its Krasnoleninskiy Project in Western Siberia.

On 5 August 2011, the Company had discovered an oilfield during testing of Well No. 2 at the Krasnoleninskiy project in Khanty-Mansiysk Autonomous Region of Russia, where International Petroleum has a 75 per cent interest. Oil commerciality was established in the J4 formation at the interval between 2,740 metres and 2,745 metres of Well No. 2, from which an unstimulated daily inflow of 6 cubic meters of oil was recorded. Using the data from this test, the Company has estimated oil flow rates after hydraulic fracturing to be 202 barrels per day (low case), 419 barrels per day (base case), and 508 barrels per day (high case) from this interval only.

Yesterday, the Company discovered an oilfield during testing of Well No. 1 at the Krasnoleninskiy Project. Oil commerciality was established in the J2-3 formation at the interval between 2,647 metres and 2,665.5 metres of Well No. 1, from which an unstimulated daily inflow of 5.5 cubic metres of oil was recorded. The Company continues to test other prospective intervals in both Well No. 1 and Well No. 2 and expects to complete the testing programme by the end of September 2011. International Petroleum plans to conduct a stimulation programme in these two wells in January 2012 and commence oil production thereafter.

The Company intends to issue a reserve report for the Krasnoleninskiy Project in accordance with the industry standard SPE-PRMS standards by the end of December 2011.

Chris Hopkinson, International Petroleum CEO said: 'Given that oil that was seen in the core and electrical logs in several intervals in the two wells that we have drilled at the Krasnoleninskiy Project, the discovery of oilfields in both wells confirms our initial analysis and we expect to build on this success with further discoveries when other prospective intervals in Well No. 1 and Well No. 2 have been tested.'

Tags: International Petroleum Limited