April 16, 2008
PetroNeft Resources plc
PetroNeft has noted speculation in Russian and international media in relation to the Korchegskaya No. 1 exploration well currently being drilled in Licence 61, Tomsk Oblast, Western Siberia.
While operations remain on schedule they have not yet been completed, however, the Company is pleased to report that the well has encountered moveable oil in the target interval. A coring operation is currently in progress, following which the well will be drilled to its planned total depth of about 2,800 metres. A further announcement will be made in due course.
The Company is also delighted to report that the pilot production test on the Lineynoye No. 7 well is complete. The well produced at a stabilised rate of 85 bopd. It was not possible to optimise the test due to generator problems. Once the pump is optimised the Company is confident the well will produce at a higher rate.
For further information, contact:
Dennis Francis, CEO, PetroNeft Resources plc,
+353 87 7412960
Paul Dowling, CFO, PetroNeft Resources plc
+353 1 4433720
John Frain/Brian Garrahy, Davy
+353 1 679 6363
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.