Arbuzovskoye 102 well - record flow rate

October 22, 2012

PetroNeft Resources plc

(“PetroNeft” or the “Company”)

Update on Arbuzovskoye well No. 102

Further to the operations update on 11 October 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 102.


· Arbuzovskoye well 102 successfully completed with an initial flow of 540 bopd

· Flow rate is highest ever achieved without fracture stimulation in Licence 61

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

· Arbuzovskoye well 109 drilling ahead

· Group production increases to over 2,700 bopd with addition of well 102

Licence 61 - Arbuzovskoye Pilot Development Programme

Arbuzovskoye well 102, the second of ten planned new production wells on the Arbuzovskoye oil field, has been successfully completed and brought into production at an initial rate of 540 bopd with less than 2% water cut.

Arbuzovskoye well 109, 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 over 2,700 bopd with the addition of the Arbuzovskoye No. 102 well.

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

“We are delighted with the outstanding production rate of over 500 bopd from well 102. This is well above our target rate for these wells and further confirms the excellent continuity and good reservoir properties in the eastern portion of the field. While there may be some variation in results, we look forward to the additional wells in Arbuzovskoye over the coming months as we continue to focus on materially increasing our production profile and cash flows.

For further information, contact:

Dennis Francis, CEO, PetroNeft Resources plc

+353 1 443 3720

Paul Dowling, CFO, PetroNeft Resources plc

+353 1 443 3720

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.


2P reserves

Proved and probable reserves according to SPE standards


Barrels of oil per day


True vertical depth