2012 Final results and operations update
June 28, 2013
PetroNeft Resources plc
(“PetroNeft” or the “Group” or the “Company”)
2012 Final Results
Operations Update
PetroNeft (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to report its final results for the year ended 31 December 2012 and to provide an operations update. In addition, PetroNeft announces that the Company's Annual Report and Accounts for the year ended 31 December 2012 and Notice of AGM will be mailed to shareholders today and is now available online at the Company's website www.petroneft.com. The latest report on Licence 61 from independent petroleum consultants, Ryder Scott, is also now available on the website.
2012 Operational Highlights
- Average production of 2,204 bopd (2011: 2,049 bopd); FY production of 806,761 barrels
- Arbuzovskoye oil field brought to year-round production
- Group 2P reserves 131 mmbbls
2012 Financial Highlights
- Revenue US$34.6 million (2011: US$29.0m)
- Pre-tax loss for year narrows to US$2.8 million (2011: US$16.4m)
- Capital expenditure of US$14 million (2011: US$52 m)
June 2013 Operations Update
- Current total production steady at 2,600 bopd
- Water injection commenced at Arbuzovskoye oil field
- Monthly repayments to Macquarie commenced
- Farmout and refinancing discussions ongoing
In April 2013, one oil production well at Arbuzovskoye was converted to a water injection well. This is working well but it will take several months to see the full benefit of this injection well. Current production is steady at 2,600 bopd.
In March 2013, we commenced repayments of US$650,000 per month to Macquarie Bank Limited and we continue to make these payments from our own resources. To support the Company’s growth aspirations we have appointed financial advisors, Evercore Partners LLP, to assist with negotiations in relation to a potential farmout of up to 50% of Licence 61 and are currently in discussions with a number of parties. We are also in active negotiation with a number of Russian and International banks to refinance the Macquarie debt facility with a longer term arrangement which more appropriately reflects the long term production profile and growth potential of our asset base.
Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented:
“Overall, 2012 was a challenging year. While we are pleased we brought a second oil field into production, regrettably this success was overshadowed by the production results from Pad 2 at Lineynoye and the consequent financial constraints that have slowed the Group’s development.
With the Arbuzovskoye, Sibkrayevskoye and Tungolskoye oil fields the Group can generate significant cash in the coming years utilising the infrastructure already in place as well as through the addition of yet to be discovered reserves from our portfolio of exploration prospects. The combination of proven production and operating experience, high quality undeveloped reserves and extensive regional infrastructure makes PetroNeft’s portfolio highly attractive to a range of financial and industry partners.”
For further information, contact:
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Dennis Francis, CEO, PetroNeft Resources plc |
+1 713 988 2500 |
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Paul Dowling, CFO, PetroNeft Resources plc | |
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John Frain/Brian Garrahy, Davy (NOMAD and Joint Broker)
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+353 1 679 6363 |
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Henry Fitzgerald-O’Connor, Canaccord Genuity Limited (Joint Broker)
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+44 207 523 8000 |
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Martin Jackson, Citigate Dewe Rogerson |
+44 207 638 9571 |
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Joe Murray/Ed Micheau, Murray Consultants |
+353 1 498 0300 |
