News

“I have now been in my new position as CEO for just over two weeks and thought it would be an appropriate time to update you on my initial thoughts."

Loan facility

In January 2018 PetroNeft agreed a loan facility for up to US$2 million with Swedish company Petrogrand AB (“Petrogrand”) secured on the assets of PetroNeft.  The loan facility was fully drawn down and was used to finance the drilling of the successful C-4 well in 2018 and for general corporate purposes.  The parties have agreed an increase in the facility by US$500,000 to US$2.5 million and a revised maturity date of 15 December 2019 (which may be extended by mutual consent of the parties).

Paul Dowling, CFO and Company Secretary, will depart the Company at the end of January 2019 to pursue other opportunities. Paul will be available to the Company for a transition period while a suitable candidate is identified by the Company..

PetroNeft (AIM: PTR) an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67, is pleased to announce the selection and appointment of a new Chief Executive Officer (“CEO”).

 Mr. David Sturt, who has been a Non-Executive Director of the Company since 2016 will become CEO with effect from 25 March 2019. In the meantime, Karl Johnson, VP of Operations, will continue as Interim CEO.

Loan facility

In January 2018 PetroNeft agreed a loan facility for up to US$2 million with Swedish company Petrogrand AB (“Petrogrand”) secured on the assets of PetroNeft. The loan facility was fully drawn down and was used to finance the drilling of the successful C-4 well in 2018 and for general corporate purposes. The loan matured on 31 December 2018, however discussions are ongoing to agree an extension and an increase to the facility. We will update shareholders in due course.

Dennis Francis, Chief Executive Officer (“CEO”) and a founder of the Company, has informed the Board that he has elected to retire as CEO following his recent 70^th birthday. Mr Francis will remain as a Non-Executive Director in the Company and has agreed to assist the Company on a consulting basis as required to ensure a smooth transition for his replacement and to assist in examining options to maximise shareholder value including the potential disposal of Licences 61 and 67.

The Board has initiated a search for a new CEO to succeed Mr Francis and has asked Karl Johnson, VP of Operations, to assume the position of interim CEO with immediate effect.

PetroNeft (AIM: PTR) an oil and gas exploration and production company operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67 is pleased to announce that cased-hole testing of the J1-1 and J1-3 intervals of the Cheremshanskoye No.4 (C-4) well in Licence 67 has confirmed the excellent results from the open-hole testing reported on 28 August.

 Highlights

·         Excellent results of open-hole testing confirmed and upgraded by extensive cased-hole test of the J1-1 and J1-3 intervals. The well productivity from the cased-hole test indicates that the combined intervals should achieve in excess of 450 bopd when produced on an electric submersible pump.

·         The C-4 well proves up the northern half of the Cheremshanskoye field with oil tested from two horizons.

·         The well is the first one drilled with the help of 3D seismic data acquired by PetroNeft in 2014 and is approximately 5km from two previous oil wells which were drilled along the southern boundary of the field (C-1 & C-3 wells).

·         Result has the potential to increase gross reserves by 40 mmbbls (20 mmbbls net to PetroNeft)

Highlights

•         Gross production from Licence 61 in H1 2018 was 2,135 bopd (1,068 bopd net to PetroNeft).

•         Testing of C-4 well continuing

o    Testing will continue for several week

Highlights

·         Successful well proves up significant northern half of the Cheremshanskoye field with oil tested from two horizons at a combined prorated flow of 399 bfpd, exceeding expectations.

·         The well is the first one drilled with the help of 3D seismic data acquired by PetroNeft in 2014 and is approximately 5km from the previous two oil wells which were drilled along the southern boundary of the field (C-1 & C-3).

·         Result has the potential to increase reserves by 40 mmbbls (20 mmbbls net to PetroNeft)

·         Total net pay across both Jurassic intervals is 10.4 m

Oil production at Licence 61 for the second quarter of 2018. 

Licence 61 Gross Production	Q2-2018	Q1-2018	Q4-2017	Q3-2017	Q2-2017	FY 2017	FY 2016	FY 2015
Total gross production bbls	183,368	203,114	198,708	192,956	200,208	816,476	990,887	737,655
Gross bopd	2,015	2,257	2,160	2,097	2,200	2,237	2,707	2,021
PetroNeft 50% share bopd	1,008	1,128	1,080	1,049	1,100	1,118	1,354	1,010

 

Drilling of the Cheremshanskoye No. 4 (C-4) well has commenced in recent days. The C-4 well is designed to further delineate and de-risk the Cheremshanskoye field in advance of field development. 

It has come to our attention that the above fake website has been setup in an attempt to defraud potential buyers of oil products. We have contacted the website Registrar to have the site removed.

PetroNeft (AIM: PTR), notes the speculation in media regarding the potential disposal of Licence 61.  The Company is examining a number of options in relation to maximising shareholder value.   This process is at a very early stage and there is no certainty that any transaction will be completed.  Further announcements will be made in the event of a material development.

2017 Final Results

PetroNeft (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to report its final results for the year ended 31 December 2017.

Oil production at Licence 61 for the first quarter of 2018. 

Licence 61 Gross Production	Q1-2018	Q4-2017	Q3-2017	Q2-2017	Q1-2017	FY 2017	FY 2016
Total gross production	203,114	198,708	192,956	200,208	224,604	816,476	990,887
Gross bopd	2,257	2,160	2,097	2,200	2,496	2,237	2,707
PetroNeft 50% share bopd	1,128	1,080	1,049	1,100	1,248	1,118	1,354

 

• Drilling of the Cheremshanskoye No. 4 (C-4) Appraisal Well in Licence 67.
• Continued testing at Sibkrayevskoye in Licence 61.
• Studies for West Lineynoye L-8 Lobe Development in Licence 61.

Production at Licence 61 in the fourth quarter of 2017. 

Licence 61 Gross Production	Q4-2017	Q3-2017	Q2-2017	Q1-2017	FY 2017	FY 2016	FY 2015
Total gross production	198,708	192,956	200,208	224,604	816,476	990,887	737,655
Gross bopd	2,160	2,097	2,200	2,496	2,237	2,707	2,021
PetroNeft 50% share bopd	1,080	1,049	1,100	1,248	1,118	1,354	1,010

 

Highlights
• US$2 million loan agreed with Petrogrand AB
• Operations – Winter production from Sibkrayevskoye is getting underway