Operational Update

PetroNeft Resources plc

Operational Update

PetroNeft Resources plc ("PetroNeft" or "the Company"), owner and operator of Licence 61, Tomsk Oblast, Russian Federation is pleased to provide this update on the progress on its 2007/08 three well drilling program and pilot production.

Highlights;

• Drilling has commenced on the Korchegskaya No. 1 exploration well


• Preparations for drilling the Lineynoye No. 8 delineation well and the West Korchegskaya No. 1 exploration well are underway


• Lineynoye No. 7 well has now commenced pilot production


• Lineynoye No. 6 pilot production remains steady at 245 bopd

Update on Drilling Activities

Korchegskaya No.1 Exploration Well - Drilling has commenced on the No. 1 well on the Korchegskaya Prospect.  The well was spudded on schedule on February 29, 2008. The principal target horizons for this well are Upper Jurassic sandstone reservoirs, at a depth of 2,450 metres (subsea). The total planned depth for the well is approximately 2,800 metres.  It is anticipated the well will be drilled, logged and tested within approximately 65 days of commencement. Ryder Scott estimates that this prospect has potential for 36 million bbls of possible reserves (P3). If successful, Korchegskaya will be incorporated in the overall phased development for Licence 61.

Lineynoye No. 8 Delineation Well - The rig has been moved to site and is being assembled.  It is scheduled to commence drilling in May 2008.

West Korchegskaya No. 1 Exploration Well - The rig is being moved to site and it is anticipated that drilling will commence in June 2008.

Update on Production Testing

The long term test/pilot production from the Lineynoye No. 7 well commenced on 3 March and the stabilised production rate will be advised over the coming weeks. The Lineynoye No. 6 well remains in continuous production at a stabilised rate of 245 bopd.  The production tests will continue as long as winter roads are in place to truck the oil.  The production data will be used to design the optimum fracture geometry for future stimulation and to enhance long-term reserve recovery from the fields.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc commented:
"We are delighted to have our three well drilling program up and running on schedule. We look forward to updating the market on the results of these wells."

For further information, contact:

Dennis Francis, CEO, PetroNeft Resources plc,
+1 713 988 2500

Paul Dowling, CFO, PetroNeft Resources plc
+353 1 4433720

Desmond Burke, Director Investor Relations, PetroNeft Resources plc
+353 52 53226

John Frain/Brian Garrahy, Davy
+353 1 679 6363

Damien Mauvais, Natixis Bleichroeder
+44 207 457 2020

Nick Elwes/Paddy Blewer, College Hill
+44 207 457 2020

Forward Looking Statements
This announcement contains forward-looking statements. These statements relate to the Company's future prospects, developments and business strategies. Forward-looking statements are identified by their use of terms and phrases such as "believe", "could", "envisage", "potential", "estimate", "expect", "may", "will" or the negative of those, variations or comparable expressions, including references to assumptions.
The forward-looking statements in this announcement are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. These forward-looking statements speak only as at the date of this announcement.