H1 2019 Results

September 30, 2019

PetroNeft Resources plc ("PetroNeft" or the "Company")

2019 Interim Results

PetroNeft (AIM: PTR) an oil & gas exploration and production company operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67 is pleased to report its results for the 6 months ended 30 June 2019.


  • Gross production from Licence 61 in H1 2019 was 1,755bopd (877.5bopd net to Petroneft)
  • Achieved approval from GKZ (Russian State Reserves Board) for 19.26mmbbls of C1 + C2 reserves as a result of the drilling of the C-4 well on the Cheremshanskoye field in 2018. This is a key milestone as it enables the company to start looking at development options for the field.
  • Upgraded the technical/operational function of the company bringing in people from the region who have experience with other operators successfully developing similar assets.
  • Rigorous data collection across our producing assets; this has involved re-interpreting all seismic data, collecting pressure and injectivity measurements at key wells. The company is using this improved understanding to plan a production optimisation program to start this coming winter.
  • Successfully re-negotiated the terms of the Petrogrand loan extending the repayment term by almost a year and increasing the facility to $2.5M.
  • Succeeded in strengthening the company’s balance sheet by placing $1.3M in a convertible loan with a combination of new and existing investors.
  • Focus on cost optimisation; we have closed the Houston office, downsized the Dublin office, sold off peripheral assets and reduced staff numbers in the Tomsk office.
  • Appointment of David Sturt as the new CEO from 24th March.

Click here for H1-2019 Interim financials

David Golder, Chairman of PetroNeft Resources plc, commented:

“The first half of 2019 has been a busy time. The company has continued with the process started in 2018 to test the market whilst at the same time working on a twin track strategy to see how we may improve production and reserves at low cost to increase shareholder value. These approaches are mutually supportive as improvement in production and or reserves, is likely to increase attractiveness and interest in our assets in any sale process.

The appointment of David Sturt has brought a new rigour and energy to the process of reviewing and challenging all elements of our strategies, successfully raised capital to stabilise the financial outlook of the business and set cost effective and value-orientated plans in place for each of our key assets for next winter and beyond. The CEO statement is included in the 2019 First Half and provides in-depth overview of his initiatives and their early results.

Whilst the company faces many challenges, we are working on building a strong platform for growth in value to shareholders."

For further information, contact:

David Sturt, CEO, PetroNeft Resources plc

+971 55 1919 808

John Frain/Brian Garrahy, Davy (NOMAD and Joint Broker)

+353 1 679 6363

Joe Heron / Douglas Keatinge, Murray Consultants

+353 1 498 0300


The information contained in this announcement has been reviewed and verified by Mr. David Sturt, Chief Executive Officer and Executive Director of PetroNeft, for the purposes of the Guidance Note for Mining and Oil & Gas Companies issued by the London Stock Exchange in June 2009. Mr. Sturt holds a B.Sc. Degree in Earth Sciences from Kingston University and an MSc. in Exploration Geophysics from The University of Leeds. He is a member of the Petroleum Exploration Society Great Britain and has over 35 years’ experience in oil and gas exploration and development.


Forward Looking Statements

This report contains forward-looking statements. These statements relate to the Group'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 report 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 these financial statement




Barrels of oil per day


Million barrels

C1 + C2

Russian State Reserves C1 + C2, equivalent to 2P (Proven and Probable)