September 16, 2008
PetroNeft Resources plc has completed the drilling and testing of the primary reservoir target at West Korchegskaya No. 1 which was drilled in Licence 61, Tomsk Oblast, Western Siberia.
The primary target of the well was the Upper Jurassic sandstones of the Vasyugan Formation (J1 interval). These sandstones were not developed in the well and the well did not test hydrocarbons at this interval.
This well, which completes the Company's six well exploration drilling commitment for the full 25 years of the Licence, is currently being drilled to basement in line with licence requirements. A number of high risk secondary objectives will be tested during this phase.
Dennis Francis, Chief Executive Officer of PetroNeft Resources plc commented:
"We are disappointed with results from the primary objective of the West Korchegskaya well, which represent the only instance where this interval was not developed as a reservoir in the six wells drilled to date by PetroNeft on Licence 61. However we have gathered valuable data which will be incorporated into our regional geologic model to better direct our future exploration drilling, which include high-impact prospects testing plays independent of those encountered at this location.
In the immediate future, our efforts are focused on achieving production during 2009 from the four proven oil fields in Licence 61, and on the ongoing diversification, growth and development of the Group's business in Western Siberia."
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 (NOMAD and Joint Broker)
+353 1 679 6363
Jonathan Marren/Matt Goode, KBC Peel Hunt (Joint Broker)
+44 207 418 8900
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.