News

In order to further de-risk the field before committing to significant full field development expenditure it has been decided to drill an additional delineation well, S-375, before commencing the full development of the field. The S-375 well will be drilled on the northern structural lobe of the field approximately 2km south of existing wells that contained approximately 10m of net pay. This well will be spudded in Q2-2017 and completed this summer. 

Oil production at Licence 61 in 2016.

Licence 61 Gross Production	Q4-2016	Q3-2016	Q2-2016	Q1-2016	FY 2016	FY 2015
Total gross production	255,068	305,126	223,877	206,816	990,887	737,655
Gross bopd	2,772	3,317	2,460	2,273	2,707	2,021
PetroNeft 50% share bopd	1,386	1,658	1,230	1,136	1,354	1,010

Quarterly Production Update

Oil production at Licence 61 in the third quarter of 2016.

Licence 61 Gross Production	Q3-2016	Q2-2016	Q1-2016	Q1-Q3 2016	Q1-Q3 2015
Total gross production	305,126	223,877	206,816	735,819	519,785
Gross bopd	3,317	2,460	2,273	2,685	1,904
PetroNeft 50% share bopd	1,658	1,230	1,136	1,343	952

2016 Interim Results

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 report its results for the 6 months ended 30 June 2016.

Highlights

• Current gross production from Licence 61 is about 3,200 bopd.

• Represents a 39% increase in production in 2016.

• New wells drilled at South Arbuzovskoye during period drove production growth.

Click here for Financials 

Sibkrayevskoye Well S-374 - Vertical Delineation Well

· Two tight sandstone reservoirs encountered in the J1-2 interval

· Well tested water with no hydrocarbons present

Well will be plugged and abandoned

Highlights

Fourth successful well drilled at South Arbuzovskoye

Further increases to record production levels

Production

· Current gross production from Licence 61 increased to about 3,700 bopd (1,850 bopd net to PetroNeft)

· Increase due to new A-216 well at Arbuzovskoye

This is a new record high production for the Licence area, improving further the levels reported at the beginning of the month

Highlights

Third successful well drilled at South Arbuzovskoye

Fourth well added as follow-up

Record production achieved

Production

· Current gross production from Licence 61 increased to about 3,500 bopd (1,750 bopd net to PetroNeft).

· Increase due to three strongly performing new wells at Arbuzovskoye.

· This is the all-time record high production for the Licence area.

Highlights

· Gross production 737,655 barrels of oil from Licence 61 in 2015

o Average gross production of 2,021 bopd

o Current gross production about 3,000 bopd

· 11 Wells drilled in 2015

· 1,000 km of 2D seismic acquired at Licence 61 in 2015

· 65.5 mmbbls total 2P reserves net to PetroNeft

Outlook

· Further production increases likely from South Arbuzovskoye

· Drilling at Sibkrayevskoye No. 374 due to commence in July 2016 – potential for material increase in reserves

Active, fully funded work programme planned at Licence 61 in 2016 and 2017

Production

· Current gross production from Licence 61 is about 3,000 bopd (1,500 bopd net to PetroNeft).

Arbuzovskoye Well A-214 Horizontal Production

· Successful drilling of 1,000 m horizontal section with bottom hole at 4,008 m MD.

· Evaluation of pipe conveyed logs indicate 931 m of horizontal section is net pay.

· Current rate of production is 800 bopd with less than 5% water.

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 and Natlata Partners Limited, PetroNeft’s largest shareholder are pleased to announce they have reached an agreement on a new Board composition and structure. Accordingly, Natlata has agreed to withdraw all of its resolutions due to be considered at the reconvened EGM due to take place at 11 a.m. today.

PetroNeft is pleased to announce that it is in advanced discussions with Natlata Partners Limited (“Natlata”) in relation to a comprehensive agreement on Board and management composition. To allow time to finalise and implement the necessary agreements, both parties agreed to adjourn todays EGM, which had been requisitioned by Natlata, until 11 AM on Monday 25 April 2016. The re-convened EGM will be held at the same venue, the Herbert Park Hotel, Ballsbridge, Dublin 4, Ireland.

The ISS report supports the view of the Board set out in the EGM Circular dated 18 March 2016 that Shareholders should vote AGAINST ALL the resolutions.

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 that the legal documentation for the first tranche of the proposed US$35m financing for Licence 61 to be provided by Oil India has now been executed. The first tranche relates to the 2016 funding requirement of US$10m. The funding is provided by way of an unsecured loan from Oil India to WorldAce Investments Limited, the joint venture company that ultimately owns Licence 61. Principal repayments will commence in Q4 2019.

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 announce that it has reached agreement with Oil India, its partner on license 61, for a budget and major work programme for 2016 and 2017.

As previously announced PetroNeft has received a notice requisitioning an Extraordinary General Meeting ("EGM") of the Company from Natlata Partners Limited ("Natlata"), a company registered under the laws of the British Virgin Islands. PetroNeft announces that it has posted a circular to its Shareholders to convene this EGM, which is to be held at 11.00 a.m. at the Herbert Park Hotel, Ballsbridge, Dublin 4, Ireland on Monday 18 April 2016.

PetroNeft received notification on 6 January 2016 that Dennis Francis acquired an additional 1,500,000 ordinary shares bringing his total holding to 25,890,416 (3.66%).

PetroNeft received notification on 30 December 2015 that Dennis Francis acquired an additional 630,000 ordinary shares bringing his total holding to 24,390,416 (3.45%).

Tungolskoye

• T-501 and T-505 horizontal wells drilled. Logs suggest both to have better quality oil pay than earlier wells. Workovers in progress to improve initial flow rates.

• T-509 vertical injector well drilled. Potential for oil production before conversion to be tested.

Arbuzovskoye

· Workover programme to increase production is planned for January 2016.

· Southern portion development progressing with well pad currently under construction.

· Significant field reserve upgrade anticipated based on new well and seismic data.

Sibkrayevskoye Reserves

· Oil in Place estimates upgraded based on new seismic data; 2P reserves expected to increase significantly.