The Group has its origins in PetroNeft LLC, a Texas based company, which was founded in 2003 by Dennis Francis and David Sanders as an oil and gas investment and consultancy company focused principally on the Russian market. In May 2005, PetroNeft LLC acquired the entire participatory interest in a Russian company, Stimul-T, which had acquired a 100 per cent interest in Licence 61 following a competitive auction process in the November 2004 Tomsk Licence Auction. PetroNeft Resources plc was incorporated on 15 September 2005 and, as part of a corporate reorganization, acquired the principal assets and liabilities of PetroNeft LLC in November 2005. PetroNeft Resources plc was admitted to the London AIM and Dublin ESM Markets, in September 2006.
In 2010 PetroNeft acquired Licence 67, also in the Tomsk region and it now holds a 50% operating interest with Arawak Energy holding the remaining 50% non-operating interest.
In 2014 PetroNeft completed the farmout of 50% of Licence 61 to Oil India Limited. PetroNeft remains the operator of the licence with a 50% interest.
The Group’s strategy is to develop an oil exploration, development and production business in Russia, using the combined skills, experience and resources of the Group’s Directors and employees. In the short term this is to be achieved through the growth of production at Licence 61 and a rigorous appraisal and exploration programme on Licences 61 and 67, by seeking to bring the existing discoveries into production as rapidly as possible and by exploiting the additional opportunities already identified and summarised in the Ryder Scott Report.
In addition to operations on Licences 61 and 67, the company continues to evaluate new projects for acquisition, The objective is to acquire new «Core Exploration and Production Areas», that satisfy the company’s strict technical and legal evaluation criteria. While the main focus for new acquisitions will be the Western Siberian Basin, the company will also consider projects in other areas within the Russian Federation.