Company
PetroNeft Resources Public Limited Company is a public company registered in Ireland (Company number 408101). Its registered office address is PetroNeft Resources plc, Suite 3, One Earlsfort Terrace, 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.
The main assets of the Company are a 100% interest in a 4,991 km2 oil and gas licence (Licence 61) in the Tomsk Oblast in Russia, held through its wholly owned Russian subsidiary, Stimul-T and a 50% operating interest in a 2,447 km2 oil and gas licence (Licence 67) also located in the Tomsk Oblast. Both licences are located in the prolific Western Siberian Oil and Gas Basin. Licence 61 contains five known oil fields, Lineynoye, Tungolskoye, West Lineynoye, Kondrashevskoye and Arbuzovskoye, and 25 Prospects and Leads that are currently being explored. Licence 67 contains the Ledovoye oil field and numerous prospects and leads including the Cheremshanskaya prospect.
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.
In August 2008 the Company entered into a three year Area of Mutual Interest agreement («AMI») with Arawak Energy. The AMI is structured to enable the two companies to work together on potential opportunities in the Western Siberia Oil and Gas basin where PetroNeft has its main operations. Under this agreement PetroNeft has right of first refusal to be the operator of any joint projects in this basin.
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. Seven exploration and delineation wells were drilled resulting in the delineaton of the existing Lineynoye and Tungolskoye oil fields and the discovery of three additional oil fields at West Lineynoye (July 2007), Kondrashevskoye (April 2008) and Arbuzovskoye (November 2010).
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 had reached 2,750 barrels of oil per day by the end of December 2010 and is expected to reach 4,000 bopd by the end of March 2011.
In 2011 a further 17 production wells will be drilled at the Lineynoye field. Also in 2011 three new exploration/delineation wells will be drilled on Licence 61 at the Kondrashevskoye oil field and the North Varyakhskaya and Sibkrayevskaya prospects.
Licence 67
Licence 67 was acquired at a state auction in December 2009 for 42 million Roubles (US$1.39 million). In January 2010 Arawak Energy exercised their right under the AMI agreement to participate in Licence 67 for 50%, however PetroNeft remains as operator.
The Licence contains the Ledovoye oil field and several interesting leads and prospects. In 2011 two exploration wells will be drilled at Ledovoye and Cheremshanskaya.
