Update on Arbuzovskoye well No. 101

24 September 2012

 

PetroNeft Resources plc

(“PetroNeft” or the “Company”)

Update on Arbuzovskoye well No. 101

 

Further to the operations update on 19 September 2012 PetroNeft Resources plc (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to provide an update on the flow rate achieved from Arbuzovskoye well 101.

 Highlights:

·         Arbuzovskoye well 101 successfully completed with a stabilised flow of 310 bopd

·         Production confirms good reservoir properties interpreted from log and core data

·         Arbuzovskoye well 102 drilling ahead

·         Group production increases to 2,300 bopd with addition of well 101

 

Licence 61 - Arbuzovskoye Pilot Development Programme

Arbuzovskoye well 101, the first of ten planned new production wells on the Arbuzovskoye oil field, has been successfully completed and brought into production at a stable rate of 310 bopd with less than 3% water cut.

 

Arbuzovskoye well 102, the next well in the drilling sequence, is currently drilling ahead.

 

Arbuzovskoye contains 2P reserves in excess of 13 million barrels of oil according to independent reserve auditors Ryder Scott and is the Company’s second production development.

 

Licence 61 - Production

Total oil production, comprising both the Lineynoye and Arbuzovskoye oil fields has increased to about 2,300 bopd with the addition of the Arbuzovskoye No. 101 well.

 

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

“We are delighted with the excellent production rate of 310 bopd from well 101. This is well above our target rate for these wells and confirms excellent continuity of the J1-1 reservoir from Arbuzovskaya No. 1 to well 101. We look forward to the additional Arbuzovskoye wells over the coming months as we increase our production profile and cash flows.”

For further information, contact:

Dennis Francis, CEO, PetroNeft Resources plc	+353 1 647 0280
Paul Dowling, CFO, PetroNeft Resources plc	+353 1 647 0280
John Frain/Brian Garrahy, Davy (NOMAD and Joint Broker)	+353 1 679 6363
Henry Fitzgerald-O’Connor, Canaccord Genuity Limited (Joint Broker)	+44 207 523 8000
Martin Jackson, Citigate Dewe Rogerson	+44 207 638 9571
Joe Murray/Ed Micheau, Murray Consultants	+353 1 498 0300

 

 

 

Qualified person

The information contained in this announcement has been reviewed and verified by Mr. Dennis Francis, Director and Chief Executive Officer of PetroNeft, for the purposes of the Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in June 2009.  Mr. Francis holds a B.S. Degree in Geophysical Engineering and a M.S. Degree in Geology from the Colorado School of Mines.  He has also graduated from the Harvard University Program for Management Development.  He is a member of the American Association of Petroleum Geologists and the Society of Exploration Geophysicists.  He has over 35 years experience in oil and gas exploration and development. The technical disclosure in this announcement complies with the SPE/PRMS Standard.

 

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.

 

Glossary

2P reserves	Proved and probable reserves according to SPE standards
bopd	Barrels of oil per day
Tvd	True vertical depth