News

· Cheremshankaya No. 3 well discovers two hydrocarbon pools

o Oil discovery in main Upper Jurassic target

o Gas/oil discovery in Lower Jurassic target

o Successful open hole inflow test on both intervals

· Development drilling at Lineynoye continues to push field boundary further north

· The hydraulic fracturing programme at Lineynoye to commence shortly

· Seventh oil field discovered in Licence 61

· North Varyakhskaya No. 1 well makes oil discovery in main Upper Jurassic target

o 2.2 metres of net oil pay confirmed in J1-1 interval

o Open hole inflow test of 36 bfpd (unstimulated)

· Maiden pre-tax profit of US$3.8 million

· H1 production of 399,327 barrels of oil for the period

· Major exploration success at Sibkrayevskaya with potential to increase Group reserves by at least 50%

· Extension of Lineynoye field to the north has significant implications for overall structure size

· New tax law passed which will boost future cash flows

· Improved debt facility for up to US$75 million agreed with Macquarie Bank

· Sibkrayevskaya No. 372 well makes significant oil discovery in main Upper Jurassic target

o Approximately 12.6 metres of net oil pay in J1 interval – exceeding pre-drill estimates

o Good reservoir properties indicated with oil saturation throughout

o Open hole inflow test of 170 bopd (unstimulated)

o Sixth oil field discovered in Licence 61

Highlights:

· Kondrashevskoye No. 2 sidetrack well confirms 2P reserves

· Lineynoye 206 contains thickest oil pay encountered to date

· Lineynoye/West Lineynoye has materially thicker pay and extends significantly further north than originally anticipated

· Several new oil bearing structures are now likely to the north of Lineynoye/West Lineynoye

· Production currently averaging about 2,500 bopd, primarily from 7 wells

· Autumn production enhancement programme planned to re-frac, with larger frac sizes, existing wells on Pad 1 and new wells on Pad 2

· Planned number of wells required from Pad 3 to be reduced recognising thinner oil pays

· Extension of Lineynoye oil field north of Pad 2 with thicker pay zones expected in the longer term to compensate for reserve and production reductions from Pad 3

Q1 2012 production target has been revised to between 4,000 to 5,000 bopd and Q2 2013 to between 7,000 to 9,000 bopd

· Kondrashevskoye No. 2 well successfully tests oil

· Four additional wells completed in the Lineynoye Development Drilling Programme

· Drilling establishes interconnection between Lineynoye and West Lineynoye fields

· New structural interpretation of Lineynoye shows thicker pays extend significantly further north

· Facilities construction to expand capacity from 7,400 bopd to 14,800 bopd is on schedule for completion in July

The Company's Annual Report and Accounts for the year ended 31 December 2010 and Notice of AGM were posted to shareholders on 27 May 2011 and are available online at the Company's website.

PetroNeft Resources plc (“PetroNeft”, “the Company” or “the Group”), (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to report its preliminary results for the year ended 31 December 2010.

• Update on Hydraulic Fraturing programme and production target.
• Results of first two production wells in 2011 17 well campaign.
• Update on 2011 5 well exploration programme.

• Group 2P reserves increase 36.8% to 96.9 mmbbls
• Hydraulic fracturing programme nearing completion
• Production drilling programme has commenced
• Exploration drilling programme to commence in early April
• New Loan facility agreed with Macquarie Bank