News

· Vertical pilot hole successfully completed

· Structural interpretation of Tungolskoye confirmed

· Open hole flow test of 100 bopd, unstimulated

· 8.2 metres of net oil pay encountered

· Horizontal section of T-5 well to commence

Highlights:

· H1 production average of 2,163 bopd.

· Farmout of Licence 61 to Oil India completed, Company is now debt-free.

· Drilling underway at Tungolskoye and Arbuzovskoye.

· Drilling crew mobilised to commence drilling of Tungolskoye No. 5 well within the next week

· Second Drilling crew to re-commence production drilling at Arbuzovskoye will be mobilised shortly

· The Sibkrayevskoye No. 373 delineation well will follow the Tungolskoye No. 5 well

Seismic acquisition crew mobilised to commence operations for the acquisition of 1,000 km of high resolution 2D seismic in Q1 2015

· All debt repaid

· Drilling to re-commence at Licence 61 this month as part of a fully funded exploration and development programme

· Introduces a strong industry partner seeking to build an oil and gas business and strategic position in Russia

· New chapter begins for a significantly strengthened PetroNeft

·         All Russian Regulatory Approvals received

·         Completion of transaction expected in the coming days

·         All debt to be repaid

·         Drilling to re-commence at Licence 61

· Revenue up 12% to $38.6m

· Production up 8% to 870,965 barrels of oil

· Net loss of $9m, driven by $6m foreign exchange loss on intra-group loans

· Licence 61 Farmout will leave Company debt free and fund major well drilling campaign

• Farmout of 50% of Licence 61 approved by shareholders
• Resolutions proposed by Natlata not approved by shareholders

Further to the announcement of 17 April 2014 in connection with the farmout of a 50 per cent. non-operating interest in Licence 61 to Oil India Limited, a Circular to convene an EGM to approve the Licence 61 Farmout (the “Licence 61 Farmout EGM”) has been posted to Shareholders. It will be held at 10.30 am on 9 May 2014 at the Herbert Park Hotel, Ballsbridge, Dublin 4, Ireland

Highlights

· Total investment by OIL of up to US$ 85 million consisting of:

· US$ 35 million upfront cash payment

· US$ 45 million of exploration and development expenditure on Licence 61

· US$ 5 million performance bonus

· PetroNeft to remain operator of Licence 61

· Subject to regulatory and shareholder approvals with completion expected around end-May 2014

Up to six well drilling campaign to start on completion of farmout

All legal documentation and due diligence is now complete and the Company expects to execute binding legal agreements within the next week. Macquarie Bank Limited have been advised of this timetable. Shareholders will be updated fully once the agreements are signed.

EGM Requisition and Publication of Circular

Board Recommends Shareholders to Vote AGAINST ALL Resolutions

PetroNeft announces that it has received a proposal from Natlata Partners (the "Proposing Shareholder"), a holder of in excess of 10 percent of the share capital of the Company, to call an extraordinary general meeting of the Company ("EGM"). The Company is currently considering this proposal with its advisers.

Highlights

• $6.7 million fundraising consisting of
• $5.2 million new equity issue at 5 pence per share
• $1.5 million in debt
• Production higher at 2,400 bopd, reflecting improved well performance
• Licence 61 farmout confirmatory due diligence and legals progressing well; completion anticipated in coming weeks

Highlights

• Delineation drilling results at Lineynoye No. 9 indicate the J1-1 interval is oil saturated and in line with expectations.
• Average Production remains at about 2,300 bopd, with additional workovers planned.
• Farmout negotiations well advanced with an international oil company.

Highlights

• Drilling operations re-commenced
• Production currently 2,300 bopd, workovers planned once winter roads available
• Continued progress on re-financing as discussions widen to include additional parties

Highlights:

· H1 production of 445,949 barrels of oil for the period – average of 2,464 bopd

· Encouraging further progress on financing

· Current group production 2,500 bopd

Highlights

• Production steady at 2,500 bopd
• Beginning to see positive impact of pressure maintenance at Arbuzovskoye
• Strong realised oil prices
• Encouraging progress on financing

2012 Final results and annual report published

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