Shale oil flow at 50 cubic meters per day has been detected after hydraulic fracturing at a new well drilled at the Palyanovskaya block of the Krasnoleninskoye deposit of Gazpromneft Khantos. Tests have continued at the well drilled under Gazprom Neft’s plan on unconventional oil production. At the first stage, a well that produced 80 cubic meters of oil per annum was drilled in spring 2013.

In 2014, Gazprom Neft is going to drill four directional sidetracks up to 2,800 meters deep at the Palyanovskaya block. Gazprom Neft will also continue building a geological model for the deposit to estimate its potential. Gazpromneft-Khantos CEO Sergey Doktor said the recent results were good taking into account that up to 60% of wells drilled in the area had been either dry or yielded less than 10 cubic meters per day.

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Shale oil is contained in the Bazhenovskaya, Abalakskaya, and Frolovskaya rock formations in Western Siberia, which have super-low permeability and a high level of oil saturation.

To date, JSC Gazprom Neft is working on four projects involving shale oil deposit exploration. The first is in the Palyanovskaya zone of the Krasnoleninskoye field (also being developed by Gazpromneft-Khantos). In spring 2013, tests were completed on the development well drilled to study the Bazheno-Abalaksky horizon. The well produced an oil flow at a rate of 80 cubic metres per day. The second stage of the exploration programme includes the drilling of four inclined wells to depths of 2,700–2,800 metres by autumn 2014. JSC Gazprom Neft is also gaining experience in the development of similar reserves through a 50/50 joint venture with Shell: Salym Petroleum Development (SPD). In January, SPD announced that it had begun to drill its first horizontal appraisal well to explore the Bazhenovskaya formation in the Upper Salym field. In 2014–2015, SPD plans to drill a total of five similar wells using multistage hydraulic fracturing technology. Moreover, in 2013, a second joint venture between JSC Gazprom Neft and Shell was created: the Khanty-Mansi Oil and Gas Union (St. Petersburg). The company will carry out new shale oil deposit exploration and development projects in the Khanty-Mansi Autonomous Area. In 2014, the company acquired the rights to carry out geological exploration in the Yuilsky-4, Yuilsky-5, and South Lungorsky-1 sectors of the Khanty-Mansi Autonomous Area.