Successful well test

November 4, 2008

PetroNeft Resources is pleased to provide an update on the re-entry and recompletion of the Lineynoye No. 1 well.

  • 271 barrels of oil per day production rate

  • Rate can be considerably improved by stimulation and pumping

  • 5 wells now confirmed as producers

The Company has re-entered and recompleted the Lineynoye No. 1 well which was originally drilled in 1972.  The well head was found to be in excellent condition and upon recompletion the well flowed at a stabilised rate of 271 bopd on an 8 mm choke from the Upper Jurassic J1 sandstone interval.  This is natural flow to the surface without the aid of artificial lift or reservoir stimulation.  The test results confirm those achieved in 1972.

This well along with L-5, L-6, L-7 and L-8 will be a production well when development of the oil field is completed. Current operations are part of the ongoing preparation for production. 

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc commented:

"This is a great result from a well drilled in the early 1970s and suspended since that time. The test enhances our understanding of the reservoir characteristics at this location, which has in excess of 15 metres of net pay and will be an important production location."

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.