PetroNeft 2008 final results

PetroNeft Resources plc
Final Results for the Year Ended 31 December 2008

PetroNeft Resources plc ("PetroNeft" or "the Company") is pleased to report its preliminary results for the year ended 31 December 2008.

Full text of report can be downloaded from  Reports and Presentaion section.

Operational Highlights

* 3 wells drilled in 2008
* 16 % increase in 2P reserves to 70 million bbls
* 51% increase in 3P reserves to 529 million bbls
* Board sanction of development of Lineynoye and West Lineynoye oil fields in June 2008
* Production due to commence second half 2010, subject to development financing
* Licence exploration obligations completed

Financial Highlights

* Equity placing US$17.2 million in July 2008
* Capital Expenditure US$25.5 million
* Discussions with International Banks ongoing  regarding development financing
* Reductions in cost of development and funding requirements achieved
* Appointment of Canaccord Adams Limited as joint broker with Davy
* Expanding Institutional shareholder base

Dennis Francis, CEO of Petroneft commented:

"This has been another year of operational success. We have now met all our licence exploration commitments, and our drilling successes have made us certain that, given the necessary project financing, Licence 61 will be a profitable producing asset for a number of years.
Outside of Licence 61, we have and remain in contact with a number of parties regarding potential value enhancing transactions.  With the stabilisation and positive long term outlook on the oil price, as well as the considerable savings achieved in development costs, we have every reason to look to the future with confidence."
  

 For further information, contact:

Dennis Francis, CEO, PetroNeft Resources plc                            +1 713 988 2500
Paul Dowling, CFO, PetroNeft Resources plc                                +353 1 4433720
John Frain/Brian Garrahy, Davy - Nomad and Joint Broker          +353 1 679 6363
Jeffrey Auld, Canaccord Adams Limited - Joint Broker                +44 207 050 6500
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.

Full text of report can be downloaded from  Reports and Presentaion section.