London-listed oil company Sibir Energy PLC (SBE.LN) said Friday that it has drilled the first development well at the Orekhovskoye oil field in the Khanty-Mansiysk Autonomous District of western Siberia.
Sibir plans to drill nine new wells at the field in 2008, the company said in a statement.
It expects to spend $95 million on construction of two well pads, an infield road, a power substation, power lines to the pads and a 22 kilometer pipeline to the existing central processing facility at Yuzhnoye oil field.
Sibir, whose main asset is the 50:50 joint venture with Royal Dutch Shell PLC (RDSA) in Salym Petroleum Development's NV, or SPD, group of fields in Western Siberia, said in January that it has reached output of 65,000 barrels a day, of which about 58,000 barrels a day were from SPD.
Sibir expects to reach production of 13,000 barrels a day from its Orekhovskoye and Yuzhnoye fields by 2010, the company said Friday.
Sibir shares were down 8 pence or 1.51% down at 522 pence at 1015GMT following a sharp rise Thursday and in slightly up London market.