Company

PetroNeft Resources PLC is a public company registered in Ireland (Company number 408101). Its registered office address is PetroNeft Resources plc, 20 Holles Street, Dublin 2, Ireland. The Company was established to develop oil assets in the Tomsk Oblast in Western Siberia and was admitted to the London AIM and Dublin ESM Markets on 27th September 2006. Admission of the Company's ordinary shares to trading on the AIM and Euronext Growth markets exchanges was canceled on 2nd January 2023.

The company has two main assets , a 90% operating interest in a 2,477km² oil and gas licence (Licence 67) and a 50% operated interest in a 4,991km² oil and gas licence (Licence 61), both these licences are located within the Tomsk Oblast. These licences are located in the prolific Western Siberian Oil and Gas Basin. Licence 61 contains seven known oil fields, Lineynoye, Tungolskoye, Arbuzovskoye, Sibkrayevskoye, West Lineynoye, Kondrashevskoye and North Varyakhskoye and over 25 Prospects and Leads that are currently being explored. Licence 67 contains the Cheremshanskoye and Ledovoye oil fields and numerous prospects and leads.

The Board of PetroNeft is made up of highly experienced professionals in the International and Russian Oil Exploration and Development business. The Russian Management team has extensive local knowledge and experience in the exploration and development of oil and gas fields in the Tomsk Oblast.

Licence 61

Since acquiring Licence 61 in May 2005, the Company has carried out extensive reprocessing and reinterpretation, using modern technology, of 2,369 line kms of vintage seismic acquired under the Soviet regime. It has also digitised and reinterpreted the logs of 14 wells drilled on the Licence since 1972. Over 1,000 line kms of new CDP-2D infill seismic has been acquired on the Licence. Ten exploration and delineation wells were drilled resulting in the delineaton of the existing Lineynoye and Tungolskoye oil fields and the discovery of five additional oil fields at West Lineynoye (July 2007), Kondrashevskoye (April 2008), Arbuzovskoye (November 2010), Sibkrayevskoye (August 2011) and Northe Varyakhskoye (September 2011).

In 2010 the company constructed a 60 km oil pipeline from the Lineynoye oil field to Imperial Energy’s facility at Kiev-Eganskoye, oil storage and processing facilities at the Lineynoye oil field and nine new production wells at the Lineynoye oil field. Year-round production commenced in late August 2010 and production peaked at abput 3,000 barrels of oil per day in Q1 2011 following fracture stimulation of the wells.

In 2011 a further 14 production/delineation wells were drilled at the Lineynoye field and in 2012 a 10km pipeline from Lineynoye to Arbuzovskoye was constructed a programme commenced for the drilling of up to 10 new production wells.

Since the completion of the farmout to Oil India Limited in 2014 wells were drilled at Tungolskoye, Arbuzobskoye and Sibkrayevskoye. The Company also acquired 1,000 km of 2D seismic data in the northern end of Licence 61 focussing primarily on the Sibkrayevskoye oil field and the large Emtorskaya prospect. Interpretation of this new seismic data has highlighted the significant potential value of an area termed the 'northern hub' which includes the under developed West Lineynoye and Sibkrayevskoye oilfields and the large Emtorskaya prospect.

Licence 67

Licence 67 was acquired at a state auction in December 2009 for 42 million Roubles (US$1.39 million). In January 2010 Belgrave Naftogas (formerly Arawak Energy) exercised their right under the AMI agreement to participate in Licence 67 for 50%, however PetroNeft remains as operator. In 2021 PetroNeft acquired an additional 40% interest from Belgrave Naftogas (formerly Arawak Energy) resulting in the company owning a 90% interest in the licence with the remaining 10% being retained by Belgrave Naftogas.

The Licence contains the Chereshankoye and Ledovoye oil fields and several interesting leads and prospects. In 2011/2012 two exploration/delineation wells were drilled at Ledovoye and Cheremshanskaya. The Cheremshanskaya No. 3 well discovered three new hydrocarbon pools and confirmed the Cheremshanskoye oil field (October 2011). The Ledovaya No. 2a well further delineated the Upper Jurassic oil pool and discovered a potential new oil pool in the Lower Cretaceous at the Ledovoye oil field (February 2012).

In 2014 a program to acquire 156 km2 of 3D seismic over the Ledovoye and Cheremshanskoye oil fields was carried out. Following completion of interpretation of the 3D seismic data, the C-4 well was drilled in the northern part of the Cheremshanskoye field approximately 5km NNW from the C-3 well. The well successfully encountered 10.4m of net oil pay in two Upper Jurassic sands and tested a combined 399bfpd.

Following the successful drilling of the C-4 appraisal well, the company received approval from the State Reserves Committee (GKZ) for C1+C2 reserves of 2.5Mtons (approximately equal to 2P reserves of 19.26mmbbls).

The well was successfully re entered in 2019 and an extended well test carried out, the well flowed up to 426bopd with a stabilised rate of 270bopd recovering in total 1,200barrels of 35degree API oil.

Following successful completion of the extended well test, the field was brought into year round production during Q1 2021 following the completion of an all season road connecting the C-4 to an all season round.