This looks a very good bet? Mentioned in the share magazine.

yes the managment seem top class for a start 30 years ago they knew about the oil resources they are drilling for,

Hope it dosen`t take another 30 years to drill the hole.

Check this out guy's, much better play then VOG in the Russian sector, with news on the way.

Unbelievable!!

Bought in last wednesday at 32.4p so pleased with the way things are going right now and all the good news to come when drilling starts!

Another blue day today! Onwards and upwards!

hlyeo98 - What's your point?
Profit taking or company now overvalued at current sp?

There might be profit takings in the next few days. Prospect looks very good.

Is motoring today with new BREAKOUT from time to time, as profit taking is on the way after such a good rise for the last week

BREAKOUT

Its apperent that profit takeing for PTR will occur, as a 100% gain or more as been made. Nobody is going to risk a loosing the large profit they have made. Also with no news available for petroneft at present time. untill confirmation of drilling. This Sp will retract as large sell off is due. Re: 33-35p would br a reasonable correction to say the least.!

OIL MAN - 28 Nov'06 - 22:32 - 413 of 507


Great post also..

ZENGAS - 13 Nov'06 - 14:07 - 12 of 412


This is an update on the Petroneft AGM in Dublin 10-11-06 which i attended as i had been seriously interested in this one for a long time.

All the directors were in attendance - ie Chairman G. David Golder, CEO Dennis Francis, Dr David Sanders Co Secretary &General Legal Counsel, Des Burke Director of Planning, Tom Hickey Executive Director (Tullow Oils Chief Financial Officer & Director. Note - It was explained that Tom Hickey was a director in PTR and had particiapted in the latest placing because Tullow doesn't operate in Russia so there is no conflict of interest). Also present was Vakha Sobraliev, non exec director and substantial shareholder in Petroneft, with 30 years experience in Tomsk.

Vakha Sobraliev is also director of Tomskburneftegaz - a major russian and highly respected and experienced drilling company with 4,000 employees - doing/done major work for Tomskoil, Yamburg gaz, Yukos, Tomskneft, Gazprom, TNK-BP etc.

http://www.tbng.ru/aboutus.php?section_id=2458 (drilling company - director is substantial shareholder in Petroneft).



Also present - Alexy Balyasnikov managing director of Stimul-T (Petroneft own Stimul-t outright). He worked with the American directors and Chairman (all senior ex- Marathon) on Sakhlain 2 etc. He was the senior geophysical researcher for the Moscow research institute. He was recently involved as Manager for due dilligence on a large West Siberian project for TNK-BP.

The Exec Director of Stimul-t, Alexander Frenovsky was also there. He was the former director and chief engineer of Tomskneftgazgeologia - a former russian state body that discovered and delineated "essentially all of the oil and gas fields in the Tomsk region". He personally took part in developing over 15 fields. Alexander was described as having excellent relations with the Government and was highly respected by govt officials.

I'm 99% sure that Dr Nikolay Karapuzov was there too. He was also talked about - being the Chief Geolgist and Geophysicist of Stimul-T. This guy was the top man - chief geoligist & geophysicist of the former Russian state body repsonsible for discovery and delineation of all oil fields. He directly participated in the discovery of 17 fields in Tomsk.

It was aslo mentioned that Vakha Sobraliev has taken one or two of his best staff to take up employment with Petroneft in the Russian Tomsk area office (big step but again i thought this was a sign of confidence in the project that you would follow your old boss).

The Chairman spoke, introducing everybody etc and a presentation was then delivered by the CEO Dennis Francis.

The licence area 4991km2 is 150km from the 27 billion barrel Samotrskoye (6 billion remaining) oil field and 75km from the 1.4 billion barrel Vakhskoye oil field.

It was explained how the guys at Stimult-T knew the Licence area inside out but were beaten into 2nd place on the bid. However the first bidder did not have enough money to pay for the licence within the timescale (a common in practice in Russia) and so the Marathon guys who new all the guys involved at Stimult-t put together a deal and set up Petroneft acquiring the licence.

There is expected to be possibly 400 - 423 mbo recoverable from Licence 61.
There are two discovered oil fields.
It was explained how these much smaller fields were simply passed over and ignored in the search for 1 billion barrel+ oil fields. Seimsic was widely spaced in the hunt for billion barrel sized fields meaning many smaller fields/prospects were not covered by the wide seismic.
Petroneft then completed much more closely confined seismic (infill). This has identified much clearer prospects - 20 in number and there are 5 further leads.

The well log data has been entirely reprocessed from the 14 wells drilled. This was a rewarding experience and clearly to see it first hand explained, definitely helps you understand the bigger picture.

The two proven oil fields (Lineynoye & Tulgolskoye) have 33.5 mbo P1/2 with 37mbo P3.

Lineynoye has a well (no 6) being spudded 1st January 2007.
The rig (described as the big rig) has to be moved off site asap to make it in time with the weather etc to drill the West Lineynoye 67mbo P3 prospect in the 2nd quarter. The Lineynoye no6 well will be completed within 3 weeks by a smaller workover/completion rig.

The Tungolskoye field will be drilled in February 2007 - straight through to completion on this rig.

The 3rd well (as previously described) will be drilled at West Lineynoye. This is a 67mbo prospect which they are very confident of, basically with the infill seismic and reprocessing of the well data. The new data/seismic clearly shows the extent of West Lineynoye. The Lineynoye No 5 well tested and flowed oil from 2.3m of net pay from the 67mbo West Lineynoye. They regard this as very low risk and used the phrase 'no high tech involved'. They went on to explain the relevance of the Bazhenov shale which they describe as an excellent seismic reflector in this region and throughout Tomsk - it gives an exceptional degree of accuracy in identifying prospects once there is dense coverage of good quality seismic - (this has now been done). This was said to be straight forward and not hi tech stuff which he described as 'very low risk' for West Lineynoye.

It was emphasied that they sought prices from other contractors for the drilling even though their substantial shareholder (Vakha Sobraliev as described above) is doing the drill on all 3 wells. The rigs have already been mobilised. I think in all reality that if you are a major shareholder you would take more interest, care and caution when drilling on your own vested interests (ie the licence).

Vakha and the other 2 Russians own about 16.5%. We have the drilling contractor and the two geophsyscists who founded and delineated most of the fields through the Russian State body having a decent interest here to get it right. The two Russian Geos know the area/fields and will have all the loose ends on all the previous drilling/expectations/capabilities imho. (What i really like is that there is no outside drilling contractor who will cut any corners or take short cuts or use unfamiliar or inexperienced personel).

The licence and proven oil fields was described (they felt) as the best package to come on the market for a long time. Maybe this is why the two top ex Russian state body (now defunct after Yelstein/Gorbachev) geos are onboard.

Im still wondering why the Tullow Oil Chief Financial Officer got in on this too - very interesting.

The Marathon Oil Co, i think all sold out a good few years ago to the really big majors (The 3 directors/Chairman ex Marathon including the Legal big wig were all involved in Sakhalin 2 and Prioborskoye - so all extremely highly experienced.

It was explained why the company was registered in Ireland - it was judged to have the most favourable tax laws with Russia - maybe this what the Tullow Chief Finacial Officer advised. Incidentally Tullow Oil is now a 2.8 billion market cap company! It's a nice reflection that the COO from there bought stock in Petroneft in the very latest placing !

Incidentally - the placing was also over subscribed.

Anyway - they said they were looking at further licences, acquistions and any interesting opportunities but were after good quality stuff only.

They then said they were doing presentations in the UK/London next week to analysts/institutions. I guess why they had every body there - would be to meet more indepth analysis by institutions in the 'UK'. Thats why they even had all the Russians and the two top ex-State Body Geos available. Lets face it, you wouldn't need those guys for an agm in Ireland in front of about 35 attendees. There was an interpreter also there on behalf of Vakha to deal with his English.

The amount of top highly experienced management/personnel would not justify this to be a small oil company, so in my view it is clearly ambitious.

There is clearly up to 423mbo possibly recoverable from the licence.

Here is another good post from the same guy who attended the recent AGM, bags of petential and strong management.

2kilty - 28 Nov'06 - 21:39 - 410 of 507 edit


The following is an earlier post from ZENGAS in which he compares PTR with IEC, at similar stage, worth a read:-



ZENGAS - 15 Nov'06 - 14:22 - 34 of 409


Muttleyrules

We might have started at a higher valuation to Imperial but let me show you something.

Petroneft came to AIM barely 8 weeks ago with $15.5m raised and some cash left from prior to listing as a private company.

There are 3 top Russian guys on board that are of immense value to Petroneft (already been detailed just how valuable these men are).

Petroneft are now 6 weeks from drilling. MARKET CAP is 50m with 33.5mbo P2 (+ 37mbo P3) on two proven oil fields. The previously drilled edge of the 3rd field flowed oil from a 2.3m payzone and has 67mbo P3. In short we are targetting 137mbo from imminent drilling. There is expected to be up to 423mbo recoverable.


Now lets look at Imperial Energy - particularly the early days and why this company should prove to be every bit as good if not better than Imperial.

5-4-2004 IEC floated with just 3.4m shares to the mkt at 25p. Total shares were 8.1m giving a mkt cap of 2m. In reality the average Joe was lucky to get a meagre holding of shares at this time.

20-4-04. They appointed Keith Dallard who worked on Shells Sakhalin project and Shells/Sibirs Salym joint project - 25 years odd experience. This was their only top guy at that time who i believe since moved on. (We have 3 ex top Marathon oil men with 100yrs experience between them who initially put Sakhalin together plus 3 top Russian geos from the Russian state body who know Tomsk inside out and were responsible for delineating/exploring most if not all of the fields in Tomsk. They personally developed 32 major fields - Imperial can't lay claim to that).

7-7-04 First acquistion by IEC of 85% intertest for a 51% share of Sibinterneft for just under $1m.

21-7-04 75% initial stake in Sevkazgra for $100,000.

26-8-04 Option to acquire 51% stake in Allianceneftgaz for $4.95m. (not yet paid for - no cash).

12-10-04 Raised 20m with 12.5m new shares @ 1.60 = total 20.6m shares.
AFX news reports IEC shares slip 16.5p to 2.075. This valued IEC at 43m.

One month later (19-11-04)the shares were 2.55 valuing Imperial at 53m. (where Petroneft is now). This money was used to pay for their licence acquistions etc and fund the upcoming seimic programmes and drilling.

At this stage Imperial were only gearing up to start operations.

Interestingly the corresponding crude oil price averaged $42 for those 6 months against $59 now!

So ok - Imperial started at a low base with 3.4m free shares floated - but in all honesty you would need to have been one of the lucky and early few to get shares at that time and acquire a decent holding. The real base starting time for Imperial was really 6 months later when they were valued at 43m and incidentally Petroneft came to market at 35m and are now making steady progress. PTR are now valued at 50m exactly where Imperial were and this is where the two companies most closely compare.

Petroneft are also after new licence blocks and acquistions. Petroneft paid under $6m for Licence 61 (3.15m). They can at any time pull in a similar acquistion (just like IEC). In new shares it would represent only 6% dilution (just like IEC made their acquistions in part).

This was deemed to be the best licence package to come on the market for some time. Don't ask me because i have no proof - I can only go by what the directors and Chairman said). You have to realise that the three top Russians from the state body responsible for exploration and field development in this Tomsk area (where this licence is) are all shareholders in Petroneft. Even one of Russias top drilling contractors with 4,000 employees is a substantial shareholder and is doing all of the 3 well drilling. He has brought one or two of his own staff to come and work with the new company. The Chief Financial officer of Tullow Oil also is a director and bought shares in the placing.

The company is expected to be worth a minimum 250m from Licence 61 alone. Certainly licence 61 has the ability to create a market cap well north of 500m.

Will they pick up further acquistions? - they say they are after quality stuff so i expect acquisitions will come most definitely just like Imperial have done. It took Imperial a number of months after listing to announce new licence aquistions.

I let 30,000 Imperial go at 2.50 only to watch them touch 11 by May 06 (They'll be back there in due course 550m mkt cap with 70m cash - there was an end of year 07 broker note out for roughly double that from memory).

My own price target here is 75p to 1.20 over the next 6 months. Any acquistions and that may be higher.

dyor etc.

Have looked for news (incl the PTR website) but found nothing.
Almost a 14% drop at midday today. Anyone got any ideas or is it just the mms allowing a big trade to go through???

suspect just short term traders takinmg their profits ..... very common pattern with newcos

Looks like the best gamble in the oil sector,dont know where else one could potentaily buy oil for 25p a barell. will be very exciting early next year. . buy buy buy.............the market has turned....

Interesting price movement today accompanied by 3 large sells at the end of the day??

Iwould not consider that they were sells, more like same 250,000 changing books, if tey had been sells the price held up very well. .

wakey wakey............ drilling in two weeks, whats wrong?.....

Got into PTR, story about to unfold one way or another!!

See who has topped up his stake........... now that says something i think...

interesting......

The drilling was due to start in January 2007, THIS IS THE Last DAY and there;s no sign of drilling activity. Delays are imminient for late Febuary/ March another 6 weeks for any drilling to commence. I am selling and out of Ptr untill Spring is here.

any news on spudding front would be good? holding @ mo.

Friday 2nd march still no news.what is going on.?

2 huge buys today way above the ask, interesting!!

any news yet ? still in red but may cut my losses

we have news at last . looks hopefull . sitting tight at present

More Director buying, good signs.

on the move the right way. see what happens in next few weeks. good luck to all !

At last!! Going north.

Sold up on CHP and topped up PTR first thing, Directors of PTR have splashed out 200k of their own cash last week, they have experience of both the culture and the area that they are prospecting in. It will be interesting to see if this rise holds or if there is fallback until drilling results are confirmed.

looks like all going to plan, good results with more to come in next few weeks, not much volume @ mo but that may be a good thing if topping up. Who knows we may reach 1.5/2 euro b4 year end. good luck to all !

Ptr has a history of delays especially now the russian goverment have got there eyes on this one, the next spudding is May but more likely delayed untill further in the year. Therefore this could plummet down to its previous lows as short bets are takeing effect to sub 26.75-27.25p plus hedge funds are takeing advantage.

shadow is your information correct? how do you know short bets are taking effect?
this share looks pretty good @ mo but things can change quickly in this game just take a look @ chaco resources. still in black but a profit is not a profit until you sell, could do with a bit more volume/good news to push up price so i can make 20%.

Tipped in share magazine today as a buy @56.5p

still not heard from shadow! looks like we are on the way to a good return on this one. good luck

going sideways @ mo but good news on horizon @ agm end of month. dyor

looks like we are about to head north.good news to come next few days then 70/90p by september?? good long term prospects

now we are moving may be last chance to buy b4 take off, L-7 results due in soon & rns this morning will help . good luck to all

peter 123 hope your still on this one as we are on a winner, shame other posters have lost interest but some of us saw the potential. Might have a small trade early am if i feel lucky, anyhow good luck to all who stayed in!!!

Yep, I am still in.

more sells than buys today, some pi,s do not know when their on a winner.

All looking good. News soon hopefully.

Been away but returned to see my sell-if triggered at 48p to get out at break-even. Annoyed until I see current sp!! Why, bad news or market sentiment?

News wasn't bad, expected increase in reserves but no more drilling until next year probably the reason for people taking money off the table for a while in the current situation. I will buy back in again in early 2008. Glad I set a sell-if though (on this occasion). Still got other stocks down this week but all profitable with low forward PE's so will be looking to add to those at low prices.

I agreed andy. I got out around 52p. Closely monitoring the stock.

andy you wont get them any cheaper than NOW get in soon IMHO. p123 have you bought back in yet?? news coming soon will push sp back to 60 +,

Not yet spudgun.

Got back in yesterday, estimated reserves due an update soon after this years drilling and expected to be significantly increased. Todays RNS might not move sp much(?) but is a good step forward towards the objective of production with better network for supply.

I'm afraid it won't move the sp anything but down and significantly so for a while I feel, as it's a very disappointing news release. They must have bad news on the sidetracked flow test to have abandoned it so close to announcement and to move equipment causing delay until next Feb at least. If it had been good news then surely they would have waited to complete by year end as originally stated, released good news to boost share price and then moved equipment ?! Already sitting on a large paper loss here which is going to get a lot worse over the next few months I feel, and probably limit any upside of better news next year ?

I disagree Colin, I've been to Russia and the normal roads are bad enough, if it makes sense to crack on with other developments whilst they wait the equipment they need to side-track the well it makes a lot of sense to me.

Nice rise today and steady buying recently, tipped as speculative buy in shares magazine and I will be holding long-term having bought back in at low price.
It was a very sensible move to ensure pipeline at lower costs to bring in the revenues that will fund further development of PTR's fields.
This company is run by experts in the Russian oil markets, they are no muppets and I expect PTR to push on from 2008.

Only too happy to have been proved wrong so far.....long may it continue !

I am at a loss on this stock at the moment, but I am staying put until this comes right and I agree with other posters here. There seem to be quite a few good old Irish stocks out there : the TLW's, DGO's and possibly this one.

Shares agrees with my sentiment that the pipeline agreement is good for PTR, a nice 100,000 buy today. Later I will write up some comments from a tip for PTR which compares the current development stage with another company that rose fivefold.

Petroneft Resources PLC
14 January 2008

14 January 2008

PetroNeft Resources plc

('PetroNeft')

Acquisition of Refinery Site

PetroNeft is pleased to announce that it has acquired a site for a Mini-Refinery
at Pervomayka in the Kolpashevo District of the Tomsk Oblast, south of the
Company's current operational area in Licence 61.

The 7.5 hectare site is located approximately 200 km northwest of the city of
Tomsk at the Transneft pipeline Pervomayka pumping station in the Kolpashevo
District. The Regional Administration has given permission for the use of the
land for a Mini-Oil-Refinery. Some site clearance and preliminary ground works
were carried out by the previous owner and the off-take flange for the Transneft
pipeline connection is already in place.

The Company's medium term strategy is to participate in both the upstream and
downstream segments of the oil and gas business in Russia. Vertical integration
will ensure the Company of a reliable outlet for its domestic oil sales as well
as allow it to participate in certain tax benefits offered to the refining
sector. The end result will be an improved margin on each barrel of production
run through the facility. Acquisition of the Pervomayka site gives the Company a
very viable option, but not an obligation, to enter into the downstream business
at the appropriate time.

The Company's current focus remains the development of the reserves in Licence
61, while seeking new acquisitions and investment opportunities to broaden the
Company's portfolio and add value to its existing reserves.

Reserves Report



The reserves report for Licence 61, as at 31 December 2007, is being finalised
by Ryder Scott and is expected to be published within the next month.

Dennis Francis, Chief Executive Officer of PetroNeft commented:

'This acquisition gives us the option of improving our margins and developing
alternate income streams in the future; thereby, allowing PetroNeft to generate
maximum value from its business in Licence 61 and provide important product
supplies in the Tomsk Region.'

For further information, contact:

Dennis Francis, CEO, PetroNeft Resources plc (Houston)
+1 713 988 2500

peter 123 are you still out ? Looks like a substantial reserves upgrade on the way in next few weeks. Refinery site & pipeline looks good for us longterm. Still long on this one exit 2009+. DYOR. ps advfn has good thread set up by leeson31 well informed & objective. Good luck to all

Petroneft Resources PLC
19 February 2008



PetroNeft Resources plc

Announcement of Independently Audited Reserves


PetroNeft Resources plc ('PetroNeft' or 'the Company'), is pleased to announce a
significant increase in Reserves on Licence 61, Tomsk Oblast, Russian
Federation, following completion of a Ryder Scott Petroleum Consultants
independent reserves audit of the Licence area.



Highlights


O 81 % increase in 2P reserves to 60.6 million bbls

O Ryder Scott report net reserves under SPE classification of:

o 1P: 6.7 million bbls

o 2P: 60.6 million bbls (P1+P2)

o 3P: 350.1 million bbls (P1+P2+P3)

O Long term test/pilot production commences

O First oil sales achieved

O 2008 Exploration and Appraisal drilling programme progressing



Ryder Scott Reserves Report

Following the successful exploration and appraisal programme undertaken in
Licence 61 during 2007, PetroNeft's net proved and probable (2P) oil reserves as
of January 1, 2008 increased by 81% to 60.6 million barrels. Proved (1P) oil
reserves increased to 6.7 million and proved plus probable plus possible (3P)
reserves increased to 350.1 million barrels. A total of 3 oil fields and 26
prospects were included in the report.

PetroNeft's reserves have been revised following the recent independent reserve
appraisal conducted by Ryder Scott Petroleum Consultants in accordance with
reserve definitions approved by the Society of Petroleum Engineers (SPE) and
World Petroleum Congress.

The Russian Registered reserves for Licence 61 are also currently being updated.
It is anticipated that this process will be finished in March and that there
will be good alignment with the SPE based reserves.



Update on Production Testing

The long term test/pilot production of the Lineynoye No. 6 and No. 7 wells is
progressing as planned. The Lineynoye No. 6 well has now been commissioned and
is currently producing at a stabilised flow rate of 226 bopd. The Lineynoye No.
7 well is currently being hooked-up and should be commissioned in about 10 days,
with production starting. The production tests will continue as long as winter
roads are in place to truck the oil. The production data will assist in
planning the optimal well fracture programme to stimulate production and enhance
long-term reserve recovery from the fields


Update on Drilling Activities

The three existing drilling rigs are all being moved to the new drilling sites
for this year's planned exploration and delineation drilling programme. The
drilling rig for the Korchegskaya Prospect is now completely moved and is being
assembled. This will be the first well drilled, commencing in March as planned.
Ryder Scott estimates 36 million barrels of possible reserves for this
prospect.

A truck mounted work-over rig has been contracted and is being prepared to be
moved to the Tungolskoye No. 4 well in March to continue the testing of that
suspended well.



Dennis Francis, Chief Executive Officer of PetroNeft commented:

'This reserves increase shows the major progress that we have made in appraising
Licence 61 this past year. Management has successfully made good on its IPO
promise: to monetise and add to the value of the portfolio by increasing booked
reserves, discovering new reservoirs and moving towards production as soon as
possible.

PetroNeft has not only proved a significant reserve base for development, but
also has built up a high quality inventory of prospects which offer upside
through exploration over the medium term.

We will continue to maintain our focus on developing the existing fields and
keep on track for our targeted pipeline production in 2009, whilst remaining
open to any new opportunities which management believes would be worthy of
consideration '





For further information, contact:

Surely this news merits a larger jump than just 7.5%?

If this drilling comes right (3 wells I think)....how about a sp rise (a la ) VOG style....and at a guess ...looks well managed this company, probably better than VOG has been of late !

Further to my previous post : this is like a miniature IEC !

Whoooaa...some movement Ladies and Gents....something cooking perhaps!.

Up again today....if with some good news and oil rising (nearly $9 in one day)..., this would fly for sure....just got to hope for some !

yes its looking good agin for PTR, hopefully this time the sp will stick?

A little calculation : without going into complicated well names ; by my reckoning :245 barrels per day and 85 barrels per day totals : 335 barrels per day before tests are finished and before stimulation....you could come up with about 1000 barrels per day at the beginning of fullscale production in 2009, and they are probably going to drill development wells all over the area....so you could easily come up with a lot more...and there is the exploration upside to be taken into account as well....market cap (I think) of 45million with an absolute minimum income from sometime in 2009 of 50000 per day....multiply this by 365 days and I come up with an income of 18 million plus per year before expenses and this is an absolute minimum.....what do you think Andy ?,....a further fundraising for this company seems inevitable but big prospects !.

I think huge prospects but maybe some fund-raisng to get there, probably at a discount in current markets but then huge opportunity with the main risk being the Russian governments desire to curb foreign profits from its natural resource assets.

An update is well overdue....movable oil discovered in the exploration well (very good sign), but might not be in commercial quantities....but the other wells should be fine...if this is what happens sp might not drop by much....any success in the former and I would expect a 10p increase in the sp....though I might be clutching at straws...and knowing my luck....anyway we shall see....overall looks like a Russian Nighthawk !.

Great update...market reaction.... : sp drops....really I fail to understand why these things happen...oil at an all time high, 4000 barrels of oil by end 2009 (not that far away), 12000 barrels by 2012....a little undervalued perhaps...(by a mile)...what does the market want ? a miracle ?.

Ludicrous drop here...but what can you do if the market doesn't like the update !, well.... down the sp goes and I am staying in..., if this company delivers and so far to the best of my knowledge is doing so...this should go above 50p on production or the run up to it...and if it ever produces 12000 barrels per day then it should be way above 100p....!.

Good right ups in Shares magazine...undervalued !.

Another step in the right direction !.

Finance arranged - $80m - Road block removed.

Yes oilwatch...this is starting to tick all the right boxes....things are moving quickly....sp is a bit slower....this should be double what it is now !.

Funding completed....no doubt this will come right....4000 barrels per day in a year....climbing to a possible 14000 in 2012...reminds me in production figures of Emerald Energy.....they are not there yet (in market cap) size, but the signs are there.The next step will be to bid for another licence....PTR will come right in time...for me : good one to tuck away...shame the market doesn't push the sp up...but it will in time !.

More good news....when on earth will this ridiculous market recognize this stock ?.....there is seldom any bad news ever here....and yet the sp will not climb...next year this will be a mid-cap aim oil producer and nobody wants to know !.

Another good deal by PTR...this has just got to go higher !.

Chart indicates a breakout for ptr and monday stipulates this action is evident for ptr.40p.

5 producing wells now....and more to come...the Russian Nighthawk !.

Very good news and the SP has reacted accordingly so far today.

Due for a rebound, project back on track soon with rising crude ? Rns coming ?, if oil rises above $50, I would like to think so. !

Wakey..wakey !...660 barrels per day and rising and directors buying....!.

Is a transfer from father to son a big deal????

No, but the father bought them !.

This stock i s starting to interest me,valued at 43 and with 70m P2 reserves.
Now 43m*1.6534= $71m,so $1bo, i would normally expecr a min of $2bo from
this part of the world and with 10mbo P1 along with 660bopd production(sold locally so maybe $20/30bo?)it looks quite a investable opportunity and a brokers note just out stating 41p.
In less than 12 months a pipeline will have been constructed and 11wells drilled
giving a possible 4000bopd? I need to find out what taxes are due and debt but at 1st glance an excellent company,probably take a small position to start.
cyril

Nice graph....really steady upward trend....I'm still at a loss but will stay put for the next year...

well i agree with noc and what with some big shot - whose name escapes me- freshly on board )pun unintended) i bought a few at 22/23p along with some mxp ..Strong chart-10,30 and 100 day ema of 22.4 , 21.41 and 19.65 illustrate its in upward trend .

nice move upwards today on the back of spudding news, sp target 40p.

Excellent news


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

Operations Update

Positive result from first three production wells, pipeline complete and
awaiting final testing

PetroNeft Resources plc (AIM: PTR) owner and operator of Licences 61 and 67,
Tomsk Oblast, Russian Federation, is pleased to provide an update on its
operations.

Highlights:

First three production wells successfully drilled

Pipeline construction complete, testing imminent

Construction of production facilities on schedule

Arbuzovskaya exploration well site preparations nearing completion

Development Drilling
Drilling of the first three of nine production wells at the Lineynoye oil field
planned for 2010 have now been completed ahead of schedule. Preliminary log and
survey data indicate that the results of these wells are in line with
expectations:

+------+----------------+----------------+--------+----------------+
| Well | Top of | Gross | Net | Comments |
| No. | reservoir | hydrocarbon | oil | |
| | vertical depth | interval | pay | |
| | subsea metres | metres | metres | |
+------+----------------+----------------+--------+----------------+
| | | | | Interval is |
| 109 | 2,392 | 14.0 | 10.2 | completely |
| | | | | saturated with |
| | | | | oil. |
+------+----------------+----------------+--------+----------------+
| 110 | 2,395 | 13.0 | 8.9 | Interval is |
| | | | | completely |
| | | | | saturated with |
| | | | | oil, bottom |
| | | | | 2.7m appears |
| | | | | to be tight |
| | | | | reservoir. |
+------+----------------+----------------+--------+----------------+
| | | | | Interval is |
| 112 | 2,401 | 16.2 | 12.0 | completely |
| | | | | saturated with |
| | | | | oil. |
+------+----------------+----------------+--------+----------------+


The wells penetrated the top of the reservoir 5 to 8 metres higher than
prognosis. The field wide oil-down-to in the reservoir is at 2,430 metres true
vertical depth which is well below the oil-down-to in any of the production
wells drilled thus far. This relationship will help the future production
performance of the wells.
Production casing has been run in the wells and successfully cemented. The
drilling rig has been moved along its rails and the fourth well, No. 113, has
been spudded. A work-over rig has begun the process of perforating and
installing electrical submersible pumps in wells 109, 110 and 112. Well No. 111
will be the final well drilled in the 2010 programme as an operational decision
was made to re-order the drilling of wells.

Pipeline Construction
Construction of the 60km export pipeline from the Lineynoye field to the
Kiev-Eganskoye field is complete. The pressure and hydro testing of the pipeline
will commence later this month following which the pipeline will be ready to
receive first oil production on schedule in the third quarter of 2010.

Production Facilities
Construction of production facilities continues and is on schedule to be
completed for first oil production in the third quarter of 2010.

Arbuzovskaya Exploration Well
Rig-up operations for the Arbuzovskaya exploration well are over 80% complete
and drilling is scheduled to commence in October after the nine well production
drilling programme has been completed. This is the first of at least three
exploration/delineation wells to be drilled in the northern part of Licence 61
in 2010 and 2011. This programme has the potential to materially increase both
Group reserves and the long term production potential of Licence 61.

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

"The drilling of our production wells remains ahead of schedule and we are
delighted with the well results to date. Pipeline testing is due to commence in
the coming weeks and construction of production facilities continues at pace. We
look forward to achieving first production in the third quarter and our year-end
production target of 4,000 bopd"
curil

| |

PetroNeft Davy Research note
Price: 32p
First oil production will fund further
growth; raising valuation to 76p per
share
www.davy.ie
Bloomberg: DAVY
Research: +353 1 6148997
Institutional Equity Sales: +353 1 6792816 Davy Research
Rating: OUTPERFORM Issued 18/12/09
Previous: NEUTRAL Issued 30/06/09
James McCullough
james.mccullough@davy.ie / +353 1 6148921
Job Langbroek
job.langbroek@davy.ie / +353 1 6148914
Caren Crowley
caren.crowley@davy.ie / +353 1 6148923
Share Price Performance
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Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10
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Petroneft price (p) Price rel ISEQ Overall index (rhs)
Company data
Reuters/Bloomberg/Xetra PTR.L/PTR LN/P8ET
Sector Resource
Shares (m) 347.7
Daily No. Shares Traded (m) 0.977
Free Float (%) 84.9
52 Week High/Low 35.25/12.75
Capital Structure
Mkt. Cap (m) 111.3
Net Debt/(Cash) 0.0
Deferred consideration/debtrelated
N/A
Pref Shares/Non Eq Min N/A
Minority interests N/A
E.V. (m) N/A
Recent research and research resources
Recent research and financial data on Petroneft
Sector research and data on Resource
First production is imminent; cashflow will be reinvested
PetroNeft is on track to commence oil production
from its primary Russian licence in Q3 this year.
We expect production of over 8,000 barrels of oil per
day (bopd) in 2011, rising to over 18,000 bopd in
2014.
Free cash flow of $12m next year, increasing to over
$70m in 2014, will be reinvested in developing other
reserves, exploring existing targets and expanding the
portfolio.
Scale of exploration assets can provide significant value lift
On its main licence alone, PetroNeft has proven and
probable reserves of 71 million barrels of oil and
possible reserves of over 460 million barrels.
Exploration drilling will commence in October this
year and continue through next year, targeting up to
100 million barrels of the possible resource base.
PetroNeft's average finding cost per barrel over the
last four years is $0.65, while its enterprise value (EV)
per reserve barrel is $2.28.
Retaining our 'outperform' rating with a valuation of 76p
per share
Our risked net asset value for PetroNeft is 76p per
share based on a long-run oil price of $85 per barrel.
This implies upside of 138% from the current share
price.
The stock is currently trading at an EV to forecast
2011 EBITDA ratio of just 2.6 times.
First production is just the beginning; the real growth
phase, driven by exploration, starts now.


cyril

Another excellent RNS.
Pipeline testing complete, fourth production well successfully drilled



PetroNeft Resources plc (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to provide an update on its operations.



Highlights:



Pipeline pressure testing successfully completed



Fourth production well successfully drilled



Construction of production facilities on schedule



Arbuzovskaya exploration well site preparations substantially complete.





Pipeline Construction

Hydro-static pressure testing of the pipeline has been completed on schedule. The 60 km pipeline was successfully tested to design pressure which is twice the normal operating pressure. The water used in the testing procedure will now be removed from the pipeline in preparation for the commencement of oil production.



Development Drilling

Drilling of the fourth of nine production wells at the Lineynoye oil field has now been completed ahead of schedule. Preliminary log and survey data indicate that this well has the highest quality reservoir and net pay characteristics encountered to date in the development programme.



Well No.
Top of reservoir vertical depth subsea metres
Gross hydrocarbon interval

metres
Net oil pay

metres
Comments



113


2,396


17.6


14.6
Interval is completely saturated with oil.






Production casing will now be run in well No. 113 and cemented. The drilling rig will then be moved along its rails and drilling of the fifth well, No. 114, will commence shortly. A work-over rig is continuing the process of perforating and installing electrical submersible pumps in wells 109, 110, 112 and 113.








Production Facilities

Construction of production facilities continues and is on schedule to be completed for first oil production in the third quarter of 2010.



Arbuzovskaya Exploration Well

Rig-up operations for the Arbuzovskaya exploration well are substantially complete and drilling is scheduled to commence in October after the nine well production drilling programme has been completed. This is the first of at least three exploration/delineation wells to be drilled in the northern part of Licence 61 in 2010 and 2011. This programme has the potential to materially increase both Group reserves and the long term production potential of Licence 61.



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



"Successful completion of pipeline testing is another major milestone and construction of production facilities remains on schedule. We are very encouraged by the result of the latest production well which is the best drilled so far and look forward to achieving first production in the third quarter and our year-end production target of 4,000 bopd"

cyril

Excellent steady climb, with first oil production coming soon....

Tipped this the other day on GKP,up 10%and hoping for more with first oil expected nwxt week? Just need the volume to pick up and pop goes the wheasel.
cyril

Great news,like a sister IEC,perhaps 50p today?
cyril


PetroNeft Resources plc (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to provide an update on its operations at Licence 61.



Highlights:



Fifth and sixth production wells successfully drilled



Wells have encountered some of the thickest net pay to date



Year-round production expected to commence in August 2010



Arbuzovskaya exploration rig-up complete.





Development Drilling

Drilling of the fifth and sixth of the planned nine production wells at the Lineynoye oil field has now been completed ahead of schedule. Preliminary log and survey data indicate that these wells have encountered some of the thickest net pay to date in the development programme. The top of the reservoir interval is from 8 to 10 metres higher than prognosis which will benefit future reservoir stimulation and recovery of reserves.



Well No.
Top of reservoir vertical depth subsea metres
Gross hydrocarbon interval

metres
Net oil pay

metres
Comments



114


2,397


20.8


15.8
Interval is completely saturated with oil.



115


2,387


18.0


14.0
Interval is completely saturated with oil.




Production casing will now be run in well No. 115 and cemented. The drilling rig will then be moved along its rails and drilling of the seventh well, No. 116, will commence shortly thereafter. A work-over rig is continuing the process of perforating and installing electrical submersible pumps in wells 109, 110 and 112 to 115.



Production Facilities

Construction of production facilities is almost complete and, based on the current rate of progress, is on schedule to allow first oil production to commence in late August 2010.



Arbuzovskaya Exploration Well

Rig-up operations for the Arbuzovskaya exploration well are complete and drilling is scheduled to commence in October 2010 after the nine well production drilling programme has been completed. This is the first of at least three exploration/delineation wells to be drilled in the northern part of Licence 61 in 2010 and 2011. This programme has the potential to materially increase both Company reserves and the long term production potential of Licence 61.



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



"Drilling of the production wells is continuing ahead of schedule and the results continue to be within or ahead of expectations. We are only weeks away from commencing year-round production and I look forward to updating shareholders in late August confirming we have met this target."

Been in for years.....right through the bad times and now this is perking up big time....

RF good on you, looked long and hard start of the year,ended up low 30's.
cyril

great news today, could PTR become the next DGO?

Perhaps not as big as Dragon Oil but with a hefty income from oil production...4000 barrels plus, I reckon the sp could touch the pound level by the end of the year...plus exploration upside...great little oil company to tuck away....

rf today's RNS suggests production will exceed 4000 bopd with plenty more to come.

Halifax, more the next IEC who's fields were in the same area,next block i believe?
cyril

If it's anything like IEC....then we are looking at several pounds.....but if I remember correctly : they had quite a few blocks, that's more than PTR have at the present moment but it's a nice comparison....

RF your right in concerning the extra blocks,i was thinking more of region and
success rate. Looks to be a very productive area and inferstructures in place.
cyril

Although a couple of weeks old well worthreminding ourselves of what we have,check the last statement.
cyril

PetroNeft Resources expecting first oil production in late August


29 July 2010



With the sixth of nine production wells drilled, and construction of production facilities almost complete, PetroNeft Resources expects to achieve first oil production from its Linenoye field in Russia, before the end of August.

Production will be transported in a newly constructed 60km pipeline which links up with facilities at Imperial Energy's Kiev-Eganskoye field for onward transmission to the main Transneft pipeline system.

With year round production, PetroNeft Resources is targeting 4,000 barrels per day by the end of 2010, 8,000 bopd in 2011 rising to 12,000 bopd in 2012 from the current development of the Linenoye and nearby West Linenoye fields. In 2012, a second development phase will see the addition of production from the Tungolskoye and Kondrashevskoye fields with production anticipated to reach 20,000 bopd from all four fields.

The four fields, plus 26 other prospects, are located in Licence 61, Tomsk Oblast, in the southeastern West Siberian plain of Russia. As at 1 January this year, booked 2P reserves from the four fields total 70 million barrels and 3P reserves are estimated at 531.3 million barrels. At the time of writing, Petroneft Resources' market capitalisation is around 150 million.

PetroNeft Resources which was established in 2005 to develop oil and gas assets in Russia now has two Licence Areas in the Tomsk Oblast: Licence 61 (100%), and the Ledovy Licence 67, which was won at auction in December 2009 and will be appraised and developed 50:50 with Arawak Energy.

Initial efforts on the recently acquired Licence 67 will involve reprocessing of data from 22 1970's vintage wells and 4,300 km of 2D seismic data acquired in the 1980's and 1990's.

In addition to bringing the Linenoye and West Linenoye fields into production, PetroNeft Resources is planning to spud an exploration well in October on the the Arbuzovskaya prospect, a 30 million barrel prospect about 10 kilometres from the Linenoye field. Further likely wells are an exploration well at the Sibkrayevskaya prospect where potential by-passed pay has been identified and a delineation well at the Kondrashevskoye oil field targeting upside above the 8 million barrels of 2P reserves currently identified.

The management of PetroNeft Resources will be no doubt be delighted when production starts up next month, however their plans to explore Licence 61 further and take a close look at Licence 67 suggest that they want to take the PetroNeft Resources story much further. The company's 2009 Annual Report is also one of the best reports I have come across in the oil and gas sector.

Looks like PTR are on the move,not so supprising considering 1st oil by end of month,ideal time for T traders?
cyril

News update expected next week .

Looking good.....excellent little Irish-Russian company this....

Super graph......another gem.....

Yes and with news expected this week,had to close one of my T positions,alas.
cyril

Excellent news as good as one could expect imo?
cyril

PetroNeft Resources plc

("PetroNeft" or the "Company")



Production Commences in Licence 61



PetroNeft Resources plc (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to provide an update on its operations at Licence 61.



Highlights:



Year-round production commenced on Licence 61 in Tomsk Oblast



Production of 4,000 bopd expected by end 2010



Seventh production well encounters thickest net oil pay to date





First Oil

Construction of production facilities has been completed and production has gradually been commenced from four wells. Field production has been 1,100 bbls of oil in the first two days of production and flow rates are expected to increase as drilling fluids are cleared out and the electric submersible pumps are optimised. Three additional wells will be brought on production over the coming week.



Eleven wells are scheduled to be on production at the end of the year and we anticipate meeting our year-end production target of 4,000 bopd. In January 2011, when a crew can be mobilised on winter roads, a programme of hydraulic fracture stimulation will commence in order to achieve the maximum production levels and enhance oil recovery.



Current oil production is being used to complete the commissioning of the oil processing facilities and is filling the oil storage tanks at the facilities site and will commence filling the 60 km pipeline to the Kiev-Eganskoye transfer point shortly.



Development Drilling

Drilling of the seventh of the planned nine production wells at the Lineynoye oil field has now been completed ahead of schedule. Preliminary log and survey data indicate that the well encountered the thickest net pay to date in the development programme.



Well No.
Top of reservoir vertical depth subsea metres
Gross hydrocarbon interval

metres
Net oil pay

metres
Comments



116


2,400


22.7


17.9
Interval is completely saturated with oil.




The well was drilled in 14 days which is the fewest days yet in the current development drilling programme.



Production casing has been run in the well and cemented. The drilling rig has been moved along its rails and drilling of the eighth well has commenced.



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



"We are delighted to announce that the Lineynoye Phase 1 project has achieved first year-round oil production. This has been a monumental accomplishment achieved in less than one year of the funding for the project. We owe special thanks to our Tomsk staff for their hard work, professionalism and planning to make this project a reality. The commencement of production is a transformational milestone for PetroNeft and provides a tremendous platform from which the Company can position itself for future growth."

Good result and a hefty income now for this smallish oil company.

Steady grower, dont think it will rocket , unless they get a big find or a large reserves upgrade.

The sp will take off as soon as an exploration target is spudded.....these people have a tendancy to get things right...not infallible but a very good percentage of successes.

Looks very promising !

Copied from another board,very positive.
cyril

attended Oilbarrel today, presentation was by Dennis Francis, standing in for Paul Dowling not sure what the significance of that was. This is the second time Ive seen Dennis present at Oilbarrel and he was very impressive.

I thought I knew Petroneft well, but you pick up so much more from a session like this compared to reading websites and RNSs. Most of this we know, but worth reminding.

- Potential to triple reserves over next year
- 2011 17 production wells
- 2012 at least 17 production wells
- There will be 2 production rigs for 6 years in Lineynoye fields.

Wells were taking 30 days to drill, as theyve learnt, down to 15 days each. Cost per well is $1.3m. Fraccing costs around another $200k.
This is using old Russian drilling rigs, theyre cheap and designed for Siberian conditions.

ARBUZOVSKAYA
Drilling now, results early November. 8 metres of pay roughly equates to 16m barrels of reserves. (Remember this and bring it out when the RNS hits).

SIBKRAYEVKAYA
Drilled in 70s by Russians. 8m oil bypassed. At todays prices, very commercial. Infact, Arbyzovskaya is the only pure exploration well over the next year, every other expl drill has logs indicating bypassed oil pays.

TAX CHANGES
They are confident that there will be a tax change in January for smaller oilfields (first time Ive seen anyone so confident about this legislation change. It will apply to any field with less than 5m tonnes of oil, this equates to 35m barrel fields most of Petronefts. This will apply a 30-40% discount on NPV tax. This has such a material difference, it will affect how they prioritise future wells.

Looking back over my previous research, typically you make $20 dollar profit in Russia on oil after tax, transport etc and makes little difference whether export or domestic. I cannot find the breakdown of all of the tax elements can someone help so we can work up what difference this makes to Petronefts profitability.

LICENSE 67
They are excited about this license, it has better reservoir rocks than license 61. A drill in the 70s flow tested at equivalent to 1,000bopd.

Should be able to book reserves in 2010 as part of the license commitment was to reprocess all of the Soviet paper logs, which have all been digitised and reprocessed.

Dennis reckons that Cheremshanskaya will be the companies best field when they look back in 5 years time. Probably dont need to frac, he mentioned thats important when your drilling hundreds of wells as at $200k a pop it adds up love the fact that he mentioned wells in the hundreds on a couple of occasions.

They evaluate hundreds of opportunities each year and expect a reserve addition through this route as well when they find the right opportunity.

I knew the Petroneft team were all ex-Marathon. Dennis and his team developed Sakahlin for Marathon and sold onto Shell, this team have brilliant Soviet experience and know how to do business there.

In Q&A, made point that all licenses to date have been bought from government auction so no legacy issues as many other companies have had, if they ever did an acquisition that was not from government, would spend a lot of time on due diligence for this reason.

They are so below the radar and the fields are not strategic reserves that there is no chance of them being taken back (important as Im a shareholder of Timan Oil & Gas, different issue but big power games get played). BPs and Gazproms are all fighting over 500m barrel fields and are divesting the type of fields Petroneft want.

All licenses are both exploration and production licenses, so no issue of going back and having problems converting exploration into production.

He paid a lot of credit to the Russian team that have executed flawlessly, including the local relationships with Tomsk authorities to keep all permits, documents correct.

A thoroughly professional presentation, every question asked was comprehensively answered. I came away even more impressed than before I came.

I hope this is useful to you all. Id appreciate in return, people share how they value Petroneft going forward (reserves / production) as Id really like to validate my thinking and future price expectations, including any tax experts the impact of tax changes.

Tony

and

Hi Brenchers

Thanks for your excellent post. This is my take on the conference today.

Dennis Francis made the presentation on behalf of PetroNeft and the CFO Paul Dowling was also present.

Dennis has good experience of working in Russia having worked with Marathon Oil there before that company was taken over by Shell. The business is without doubt been driven by Dennis. He has a vision of where the company is going over the next five years and is determined to see that vision through. To help him along the way he has an experienced Board of Directors. Dennis spoke highly of the local staff in Western Siberia which suggests to me he is a good man manager.

Having recently started oil production the plan is to produce 4,000 barrels of oil per day by 31.12.10, 8,000 by 31.12.11 and 12,000 by 31.12.12. Dennis gave the impression that these figures are very manageable. In addition he is optimistic about growing the oil reserves significantly. As of now the projection for peak production is over 20,000 barrels by 2014.

Dennis mentioned that he is pretty sure from 01.01.11 that the tax regime PetroNeft operate under will be reduced. This of course would be a big plus for the company. Dennis also said when asked that the licences were clean licences in so for the monies had been paid to the relevant authorities. The risk of doing business in Russia he said was minimal for the company as their production was under the radar

Part of the presentation suggested that there will be significant news flow every 6 to 8 weeks.

Paul Dowling told me that the placing of $43 million dollars worth of new shares today was heavily oversubscribed. At the presentation Dennis hinted that this new money would be used to expand the business. Of course he could not go into details.

To sum up PetroNeft is a small company with very good growth potential including of course shareholder value appreciation I think it is important to point out that this potential will only be realised over a period of five years period anything else would be a heck of a bonus.

More from the oilbarrel,
cyril

October 21, 2010

Conference Report 2: PetroNeft Raises Funds For Exploration, Cove Energy Raises Applause For Latest Mozambique Discovery And Gulfsands Continues To Impress In Syria

By Amy McLellan


Its one year since Dennis Francis of PetroNeft Resources last appeared at an Oilbarrel.com event and the ex-Marathon Oil executive had plenty of positive news to share with delegates. The past 12 months have seen the AIM-quoted E&P bring its first oilfield in Russia successfully onstream, despite the financial constraints of operating in a post credit crunch world and the logistical challenges of working in Western Siberia, where the ground is alternatively a swamp or frozen solid.
The company achieved maiden production in August when its Lineynoye oilfield in Licence 61 (PetroNeft 100 per cent) came onstream. Production is currently running at 2,000 bpd but should hit 4,000 barrels per day by early December as all nine producers are brought online, rising to 8,000 bpd by the end 2011 and 12,000 bpd by the end of 2012 as PetroNeft drills out the field at a rate of 17 wells a year going forward.

We will be drilling here with two rigs for the next six years, said Francis. The main thing is to keep the pace going. This is not unusual for fields in the Western Siberian Oil & Gas Basin and the good news is these wells are cheap, about US$1.5 million including fraccing, and quick to drill, about 15 days. This work programme is funded on an ongoing basis through a US$30 million facility with Macquarie Bank and cash flow from production. Phase 2 of the development programme will get underway from 2012 as nearby discoveries are tied into the Lineynoye facilities, helping to lift production north of 20,000 bpd by 2014.

With production established, the company is now turning its attention to exploration, backed by the proceeds of this weeks US$43 million equity fund raising. The company has already spudded its first exploration well, targeting the 16 million barrel Arbuzovskaya prospect, with results due in early November. This is a look-alike to Lineynoye, which lies just 10 km away, and offers a quick tie-in opportunity should the well come in. The second well will delineate the Kondrashevskoye discovery, a possible 20 million barrel prospect just 5 km from Lineynoye. The third is Sibkrayevskaya, a large structure drilled in the 1970s that could hold more than 44 million barrels.

The company is also planning to explore its recently acquired Licence 67, in which it has a 50 per cent interest, with two wells on the books for 2011. We got this last year at auction for US$1.4 million and it could be the best deal we ever make in Russia, said Francis, adding that the advantage of securing acreage at auction means the title is clean and not subject to dispute from former owners.

Licence 67 is home to two existing discoveries, Ledovoye and Cheremshanskaya, with the former holding C1 and C2 reserves of around 30 million barrels (15 million net to PetroNeft). Francis has especially high hopes for Cheremshanskaya, which was discovered in 1962 (and this was before 2D seismic) and found oil shows in the Upper and Lower Jurassic but was never tested because of a poor cementing job. The Upper Jurassic alone is reckoned to hold 60 million barrels on a C3 basis (it needs to be tested before reserves can be booked). I reckon this will be the best field in the company if we step forward five years, says Francis, pointing out that reservoir quality looks to be better than in Licence 61, meaning it is unlikely these wells will have to be fracced, thereby improving project economics.

Speaking of economics, Francis also highlighted some pending legislation that could help small producers. There are plans to introduce a tax discount, possibly of 30-40 per cent, for fields less than 35 million barrels, which would certainly impact on the Lineynoye satellites, making those barrels much more valuable than those in the mother field. The proposal could be signed into law in January and would have an impact on how PetroNeft prioritises its future development programme.

http://www.oilbarrel.com/nc/news/display_news/article/conference-report-2-

Result of well early Nov.
cyril

The Arbuzovskaya No. 1 well at the Arbuzovskaya (formerly Varyakhskaya) prospect
located 10 kilometres east of the Lineynoye oil field was spudded on 10 October 2010.
The current well depth is 626 metres where the conductor pipe has been set and cemented.
Drilling will re-commence today and the reservoir objective should be reached and tested in early November.

We don't have very long to wait for a result on this well .


Production
In late August 2010, year-round oil production commenced from the Lineynoye oil field in Licence 61.
The Companys field development programme was completed on time and substantially on budget.
Field production has now reached around 2,000 barrels of oil per day (bopd) from the seven wells currently producing.
The four remaining wells should all be producing by early December when we expect to reach our year-end target of 4,000 bopd.

Fab result,worth waiting for.
cyril



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



New Oil Field discovery at Arbuzovskaya



PetroNeft Resources plc (AIM: PTR), the owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to announce the discovery of a new oil field at Arbuzovskaya in Licence 61.



Highlights:



Arbuzovskaya No. 1 well discovers oil in main Upper Jurassic target



Approximately five metres of net oil pay in J1 interval



Open hole inflow test of 289 bopd (unstimulated)



Drilling continuing with secondary targets of Middle and Lower Jurassic





Arbuzovskaya No. 1 well



The Arbuzovskaya No. 1 well at the Arbuzovskaya (formerly Varyakhskaya) prospect located 10 kilometres east of the Lineynoye oil field in Licence 61 was spudded on 10 October 2010. The Upper Jurassic J1, oil reservoir horizon was intersected at 2,566 metres measured depth. Logs indicate that the J1 interval consists of 19.0 metres of sandstone and shale. Approximately 5.0 metres of the upper most part of this interval is considered to be continuous net pay with good reservoir properties and oil saturation throughout. An open hole test was conducted over this interval and tested at a pro-rated inflow of 289 bopd unstimulated. The oil is high quality with an API gravity of 40 degrees which is consistent with other fields in the Licence area.



The well will now be drilled to basement, at approximately 2,900 metres, targeting higher risk secondary objectives in the Middle and Lower Jurassic intervals. The well should be completed by the end of November at which stage the Company will update shareholders with the final results of the well as part of the operations update due around that time. This discovery well adds a fifth oil field to the northern group of fields and will be included in Phase 2 of the development.



Arbuzovskaya is the first well of a five well exploration programme designed to potentially double the Company's 2P reserve base within the next 12 months.



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



"We are delighted to commence our new exploration campaign with the discovery of a fifth oil field at Licence 61. This is an especially important discovery, because of the good flow rate it confirms the wider prospectivity of a number of additional structures east of the existing producing Lineynoye oil field which can be easily tied in to the central processing facilities and pipeline at Lineynoye."

One of the most underestimated oil stocks on the market.....should be 100p....

Not a gusher like xcite , but a steady riser for sure.

Looks like its going to make a new high.

Steady as she goes.

We did hit 67p which is a new high, hope we dont fall back on news, which is what tends to happen.

Interesting read.
cyril

Bloomberg

Petroneft Boosts Reserves, Value Drilling Abandoned Soviet Finds
By Stephen Bierman - Dec 23, 2010 2:34 PM GMT

Petroneft Plc, the biggest gainer among Russian oil producers this year, aims to triple output and reserves, drilling deposits abandoned during the Soviet era.

A lot of time when you talk about Russia you need to talk full-cycle costs, Chief Executive Officer Dennis Francis, a former executive with Marathon Oil Corp. in Russia, said in an interview. You can pick up reserves cheaply. While you make less money, you also spend less money finding the barrel.

Drilling results at a prospect by Petronefts Soviet-era Lineynoye deposit in the Tomsk region of Siberia has lowered the risk of exploring in the area, he said. The company aims to boost proved and probable reserves to more than 200 million barrels by the end of next year from 70.8 million now, Francis said. Petronefts market value in London more than tripled this year to about 275 million pounds ($424 million).

Oil taxes and the financial crisis have hindered Russian oil explorers listed on Londons AIM small cap market, while Sibir Energy Plc and Imperial Energy Plc were bought by larger companies. Urals Energy Plc ceded assets to OAO Sberbank after failing to meet loan payments. Volga Gas Plc has lost 62 percent in the past year, the most among Russian oil producers this year, after drilling a dry well.

OAO Rosneft, Russias largest oil producer, has declined 13 percent in Moscow in the past year. OAO Lukoil, the second biggest, has risen 5.4 percent, while TNK-BP gas gained 57 percent on the RTS bourse as it agreed to buy BP Plc assets and was admitted to trading on Russias biggest exchange, Micex.

Reserve Additions

Petroneft shares arent that expensive considering that reserve additions are likely early next year after drilling a successful well and further exploration in the region, Ildar Davletshin, an oil and gas analyst at Renaissance Capital, said by phone. Theres also the potential for a buyer to be a catalyst.

Low flow rates due to non-porous subsoil may pose a risk to production increases, Davletshin said. Petroneft plans to use high-cost fracturing to pulverize bedrock and improve flows, he said.

Petroneft may double commercial output to 4,000 barrels a day this year, after starting in October, and aims to triple that to 12,000 barrels a day by the end of 2012, Francis said. A second phase of development may push output to more 20,000 barrels a day in 2014, according to the company.

Thousands of Prospects

The company may also seek to acquire licenses, Francis said.

Russia has thousands of Soviet-era prospects in the 10 million or 15 million barrel range, passed over at the time for larger deposits closer to pipelines, Francis said. An expanded pipeline network and higher oil prices have made some of these deposits potentially viable, he said.

Its a small niche, Francis said. We have an advantage working there over some of the larger companies who are more focused on developing bigger resources.

Petroneft gained access to a link to OAO Transnefts trunk pipeline from fields to the east of the Ob River for 25 years under an agreement signed in 2009. The link was built by Imperial Energy, which Indias Oil & Natural Gas Corp. acquired for about 1.4 billion pounds ($2.2 billion) last year.

The Energy Ministry estimates that only half of the countrys undeveloped oil fields could make a profit at $60 a barrel oil prices, given current taxes and costs.

Tax Discounts

Russia may encourage development of smaller deposits as the government aims to hold output at a post-Soviet high of 10 million barrels a day for more than a decade. The Finance Ministry has proposed discounts to the mineral extraction tax for deposits containing less than 35 million barrels of oil to help revive Russian oil production, which clearly helps, Francis said.

The company was formed in 2005 with rights to Block 61 in Tomsk, a region on the fringe of the West Siberian basin where most of Russias oil is produced. Through drilling, Petroneft raised the blocks proved, probable and possible reserves to 531 million barrels at the start of 2009, according to an audit by Ryder Scott.

In 2009, Petroneft and Arawak Energy Ltd. bought the rights to Block 67 and plan to begin drilling next year. The block holds 55 million barrels of reserves under the Russian C3 classification.

Small explorers have preferred Tomsk where blocks put up for auctions tend to contain several prospects as opposed to other west Siberian regions, such as Khanty-Mansiysk, where structures tend to be auctioned individually, said Francis.

Petroneft agreed loan facility of as much as $30 million dollar with Macquarie Group Ltd. in May and raised $43 million selling shares to fund drilling and move reserves from the possible category to the more valuable proved and probable category.

We are oil and gas people and we develop oil and gas and eventually if you do that well and get above the radar people get interested, he said. We arent going to stick polish and lipstick on it and sell.

To contact the reporter on this story: Stephen Bierman in Moscow sbierman1@bloomberg.net.

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net.
.

Operations Update

PetroNeft Resources plc (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to provide an update on its operations at Licence 61.

Highlights:

-- Year-end production reaches 2,750 bopd from 9 of 11 wells

-- Fracture stimulation programme to start mid-January 2011 will significantly increase output

-- Retaining 2011 and 2012 production targets

-- Lineynoye development programme on schedule; drilling from Pad 2 to start in February

-- Very good test results for Arbuzovskaya No. 1 well

-- Third Exploration well added to 2011 drilling schedule

-- Drilling Contracts awarded for 20 well Exploration and Development drilling programme

Production

Year-end production reached 2,750 bopd from 9 of 11 wells drilled. While the performance of the wells is good, production growth is being constrained by greater than expected formation damage resulting from the drilling and completion process. This issue will be overcome by the planned fracture stimulation programme.

Production from the Lineynoye No. 1 well, which is one of the best wells in the field, is not included in the year end production total as the well is currently shut-in awaiting installation of a special screw pump. Also, well 117 was taken offline pre year-end in preparation for fracture stimulation. The current production capacity of the field is estimated at over 3,000 bopd which is less than our year-end target of 4 000 bopd.

The winter fracture stimulation programme will commence in mid-January and the Board are confident that this will significantly increase the well rates by fracing through the near well bore damage and creating additional permeability conduits in the reservoir.

The Board have not changed their view on the overall productivity of the field or long term production targets as our plans have always been to fracture stimulate the wells. Consequently the Board remain confident of achieving the production targets of 8,000 bopd by end 2011 and 12,000 bopd by end 2012.

2011 Licence 61 Development programme - Lineynoye oil field

The production drilling rig that drilled the Pad 1 wells will be mobilised to Pad 2 in the coming weeks and drilling of the first of nine wells at Pad 2 should commence by the end of February. A second production drilling rig is being mobilised to Pad 3 where drilling of the first of eight wells will commence in April.

Works to tie-in Pads 2 and 3 to the existing central processing facility have already commenced and it is expected these will be completed by June 2011 thereby allowing new wells to be brought swiftly into production. We are also planning to undertake an early fracture stimulation programme in June 2011 on up to 6 wells from Pads 2 and 3.

Arbuzovskaya Exploration Well

The well was drilled to a total depth of 2,903 m on 13 November 2010. The final log data indicates that the base of the Bazhenov Formation is at 2,565 m and is underlain by 5.1 m of good quality oil saturated reservoir in the J1-1 interval. An open hole test of this interval produced at a prorated inflow of 289 bopd. The oil is very high quality with an API gravity of 47.5 degrees. There were no other zones with hydrocarbon indications in the well.

Production casing was run in the well and a step rate DST was performed. Stabilised flow on an 8 mm choke was 176 bopd and the calculated productivity index indicates the well should produce around 400 bopd on pump without fracture stimulation. These are very good results and plans are underway to register the reserves and obtain a pilot production licence which will allow us to tie-in this new field to the Lineynoye central processing facility in 2012.

Ryder Scott is currently assessing the proved and probable reserves for the field. PetroNeft estimates the 2P reserves to be in the 10 to 15 million barrel range. It is expected that the Ryder Scott report will be published in early March 2011.

North Varyakhskaya Prospect

Based on the highly encouraging results of the Arbuzovskaya No. 1 well tests, which de-risks the surrounding area, the Board has approved the addition of the nearby North Varyakhskaya No. 1 exploration well to the 2011 drilling programme. If successful, this prospect, which is located 6 km north of Arbuzovskoye oil field, can easily be tied-in to the future Lineynoye to Arbuzovskoye pipeline and could be on production in 2012.

Drilling Tender Results - 2011 Development and Exploration drilling

PetroNeft plans to drill a total of 20 wells in Licence 61 during 2011. The programme will consist of two production rigs which will drill 17 development wells from two new pads at Lineynoye and three exploration rigs which will drill the Kondrashevskaya No. 2, North Varyakhskaya No. 1 and Sibkravevskaya No. 372 wells.

Based on drilling tender results the Board has approved the award of the 2011 Drilling Contracts to LLC "Tomskburneftegaz" (TBNG). TBNG is one of the largest drilling contractors in the Tomsk region. In accordance with AIM Rule 13 and ESM Rule 13, the drilling contracts are deemed to be a related party transaction as Vakha Sobraliev, a Non-Executive director of the Company, is principal owner of TBNG.

The Board of Directors, with the exception of Vakha Sobraliev who is involved in the transaction as a related party, having consulted with Davy, the Company's Nominated Adviser and ESM adviser, have determined that the terms of the drilling contracts are fair and reasonable insofar as shareholders are concerned.

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

"While our well performance is good, it has been limited due to formation damage arising from the drilling and completion process. However, this will be resolved by the hydraulic fracturing programme and has not in any way changed our view of the reservoir quality or overall productivity of the field. We remain confident of achieving our long term production targets.

We are delighted with the results of the Arbuzovskaya No. 1 testing and have planned a very active 2011 development and exploration drilling programme in Licence 61. In particular, the addition of North Varyakhskaya prospect adds another quality prospect with near term production pot

Falls back on news, nothing new .

Unless unexpected,most stock will retrace as short termers take their profits and move on.It's what makes a market,but also creates entry oppotunities.
Just more news on how things will pan out,for the patient.

Oil Barrel:

Petroneft Resources Misses Its 2010 Output Target From Its Siberia Acreage But Is Sanguine It Can Quickly Make Good The Shortfall

PetroNeft Resources, the AIM listed junior with assets in the Tomsk Oblast, Siberia, Russia has missed its announced output target for 2010 but is not nonplussed (maybe that should be un nonplussed) about the shortfall and on other fronts looks in good shape.

The company is the owner of two oil and gas permits, Licences 61 and 67 in the Tomsk Oblast, where it is revisiting and bringing on old, known discoveries. The company had a couple of difficult years in Siberia where the ground is alternatively swamp or frozen solid, but it finally got going in 2010 with its low risk/low costs wells (about US$1.5 million a pop). The company had expected that it would be producing 4,000 bopd from nine wells by exit 2010, mostly from the Lineynoye, field one of four fields on the Licence 61 permit.

In the event the company has now reported that year- end production reached 2,750 bopd from 9 of 11 wells drilled. PetroNeft has said that while the performance of the wells is good, production growth is being constrained by greater than expected formation damage resulting from the drilling and completion process. This has meant that the current capacity of the field is estimated at over 3,000 bopd which is less than the companys year-end target of 4000 bopd. It seems that the issue will be overcome by a planned fracture stimulation programme this winter. The fraccing programme will start imminently.

PetroNeft is not too concerned about the production lag. Apart from anything else production from the Lineynoye No 1 well, which is one of the best wells in the field, is not included in the year end production total as the well is currently shut-in awaiting installation of a special screw pump. Also, well 117 was taken offline pre-year end in preparation for the fracture stimulation.

PetroNeft CEO Dennis Francis told Oilbarrel he was, not too worried about the production total. He said I reckon that once the fracture stimulation really gets going we will make up the shortfall in about six weeks or so. The news does not seem to have done any serious damage to the share price, it came off less than 5 per on the announcement of the production total for 2010.

There have been four oilfields on Licence 61 with known discoveries, Lineynoye, Tungolskoye, West Lineynoye and Kondrashevskoye. Lineynoye is very much the focus of attention and PetroNefts activities so far have been a development process. The company has announced the production drilliing rig that drilled the Pad 1 wells will be mobilised to Pad 2 in the coming weeks and drilling of the first of nine wells at Pad 2 should start by the end of February. A second production drilling rig is being mobilised to Pad 3 where drilling of the first eight wells will commence in April. This means some 17 new wells in the coming year. The company says that The Board have not changed their view on the overall productivity of the field or the long term production targets as our plans have always been to fracture stimulate the wells. Consequently the Board remain confident of achieving the production targets of 8,000 bopd by end 2011 and 12,000 bopd by end 2012.

But there is more to Lineynoye than development. Backed by a US$43 equity fund raising in 2010 the company drilled the Arbuzovskaya Exploration Well to a total depth of 2,903 metres on November 13 2010. The final log data indicates that the base of the Bazhenov Formation is at 2,565m and is underlain by 5.1 m of good quality oil saturated reservoir in the J1-1 interval. An open hole test of this interval produced at a prorated inflow of 289 bopd. The oil is very high quality with an API gravity of 47.5 degrees.

What the discovery means is that a fifth oil field is added to the northern group of wells and will be included in Phase 2 of the development programme. Moreover, Arubzovskaya is the first of a five well exploration programme designed to double the companys 2P reserve base within the next 12 months.

PetroNeft has estimated its 2P reserves at the moment at some 79 million barrels of oil equivalent (boe). The company itself estimates this new field to be in the 10 to 15 million barrel range. Ryder Scott is currently assessing the proved and probable reserves for the field and it is expected their report will published in March 2011.

At some point the exploration rigs will be moved to the more recently acquired Licence 67, which PetroNeft has a 50 per cent interest (Arawak has the remaining 50 per cent). Two wells are on the books for 2011. This licence is home to two existing discoveries, Ledovoye and Chemshanskaya, with the former thought to hold C1 and C2 reserves of around 30 million barrels (15 million net to PetroNeft).

See below from Ambrian today....

Management Meeting: Petroneft Resources (PTR LN)
Price: 67.5p Rec: NR Mkt Cap: 280.2m

Petroneft is looking to continue in 2011 where it left off in 2010 by increasing reserves and production via drilling of lots of development (17) and exploration (5) wells, and with such a busy drilling schedule there will be very regular newsflow (drilling updates roughly every 6-8 weeks).

Year-end 2010 production came in slightly under expectations at 2,750bbl/d vs. guidance of 4,000bbl/d. This was as a result of two out of the eleven production wells not being hooked up due to a key piece of production equipment not arriving onsite in time (a pump), in addition to several other wells being brought off-line in preparation for fracture stimulation and as a result of some near-wellbore formation damage.

Going forward we expect the formation damage issue will be side stepped once the winter frac job is complete and a much greater surface area of the reservoir is opened up for production. Post fracture stimulation, once all wells are brought back on-line, we expect production to surpass the previously mentioned 4,000bbl/d target. Given the large number of development wells to be drilled in 2011, along with the fact that fracture stimulation of some of the PAD 2 wells will take place ahead of winter 2011-12, we anticipate the guided exit 2011 production rate of 8,000bbl/d will be surpassed.

Interspersed with all the development drilling at PAD 2 and 3, Petroneft will also drill five exploration wells, three on Licence 61 and two on Licence 67. Bearing in mind the relatively predictable nature of the local geology and the fact that a number of the wells will be twinning old discoveries, we feel there is a very good chance that all five will be announced as successful discoveries.

We also expect Petroneft to be nimble with respect to new business development opportunities and, given that the next auction bid round is pencilled in for 1Q, we would not discount there being at least one more licence on the books by year end.

Canaccord sector review published yesterday...PTR with 93p target

Investment summary

PetroNeft almost ticked all of the boxes last year, only slipping up right at the end when it fell short of its production target. However, management seems confident that this is nothing more than a temporary blip and investors, quite rightly given its track record up to that point, seem to have given the company the benefit of the doubt. In 2011, we expect PetroNefts essentially simple story boosting reserves and output on its acreage in Western Siberia -to continue unfolding.

Recommendation and valuation

We estimate the existing oil fields on Licence 61 are worth the equivalent of 91p/share using a Brent crude oil price of US$87.50/barrel and a 15% discount rate. Adding an estimated 2p/share of net cash increases the total to 93p and we have rather conservatively given the exploration upside enjoyed by the company set this as our target price. We maintain our rating at BUY.

Also Ryder Scott resource update expected any day soon?

Well i've topped up,can;t believe the SP? News imminent,probably resource and results of fraccing?

Should be going a lot higher.....this will be 100p by the years end or thereabouts; the production is going to be increased dramatically and the next update will inform the market about it !, plus there will be exploration wells and that is what gets a sp going.....

From tonights FT:


Petroneft, the exploration group focused on Western Siberia, added 3.6 per cent to 58p, after Canaccord Genuity reiterated its"buy" recommendation, citing among other factors a forthcoming report on reserves Traders reckon that update could be published very soon and will show at least a 30 per cent increase in proved plus probable reserves to about 100m barrels .

News out today, ongoing progress, and drilling program commencing in April

100p target for me at least....

Davy Research
Petroneft
(PTR LN)
Releases operational update
10 March 2011
Job Langbroek
Closing Price: $0.95 Rating: Outperform 09/08/10
FACTS: Petroneft has released (March 10th) an operational update. Reserves (2P) have been increased from just over 70m barrels per day to 97m barrels. Seven out of nine fracced wells are producing at 400 barrels each. Two more are still due to come back on-line. The first well in the second development pad has started and the first exploration well this year will commence in April. Macquarie has converted a standard debt facility to a reserve base facility of up to $75m of which $30m is approved. A further update is expected in early April.

ANALYSIS: The statement delivers on most parts of the business plan as guided by the group. Reserve growth to 97m 2P barrels is up 37% from just over 70m barrels with the increase coming roughly half through drilling and half through the addition of licence #67 to its portfolio. The first of this year's 17 development wells is due to complete very shortly and the first of this year's five exploration/appraisal wells will commence on the 12m barrel Kondrashevskoye prospect in April. Production output has suffered from a difficult February in the field. Consequently, only seven of the nine fracced wells are back on stabilised flow, running at 400 barrels per day on average. Petroneft now expects production to be in the 3,500-4,000 barrels per day range by early April. The conversion of the debt facility to reserve base lending is cheaper and points to the evolution of Petroneft as an oil and gas producer. The facility will obviously increase operational flexibility.

DAVY VIEW: The reserve upgrade and ongoing operational development of the Linenoye field is as expected. In all, this year's exploration targets and appraisal is targeting up to another 100m barrels of reserve growth. The production numbers will disappoint but should just be a function of timing. Guidance for exit production of 8,000 barrels per day by the end of 2011 is not challenging in the context of an additional 17 development wells on top of the nine drilled in recent months. Our valuation of 72p per share is built on a production profile which is very achievable and we see significant opportunity for reserve growth and value addition on top of the existing 2P reserve base. Our rating is 'outperform', a position made even more tenable by the recent share price pullback.

http://www.investegate.co.uk/Article.aspx?id=201103100701116879C/

http://www.investegate.co.uk/Article.aspx?id=201103210700092721D

All coming together,not long to wait?


At present, seven of the fractured wells have come back fully online and are averaging over 400 bopd after clean-up and normal initial decline. We currently anticipate that production will be in the 3,500 bopd to 4,000 bopd range by early April when all wells are back on production and we will provide a further update at that time.



Russia new oil tax regime to take effect by July
Fri Mar 25, 2011 2:24pm GMT
Print | Single Page[-] Text [+] MOSCOW, March 25 (Reuters) - Russia's new oil and oil products tax regime will take effect no later than July, deputy Finance Minister Sergei Shatalov told reporters on Friday.
"There are a few small problems with certain companies . . . We hope that a decision will be taken soon," he said, adding that the new tax regime -- that aims to lower duties on crude exports while increasing those on oil products -- will be enacted in July at the very latest.

Russia's Energy Ministry has submitted a new tax regime proposal to the Finance Ministry that would lower the crude oil export duty by around 7 percent.

Nobody seems interested in this one apart from niceonecyril and myself but this has all the hallmarks of a little gem.....

This is a good'un by the look of things...unfairly underpriced....just has to go higher...much higher...

Can't believe the drop here....with all the wells to be spudded soon and it drops like a stone ......the market has taken a very short term outlook with this one....

With current production of 2500 bopd and market cap of 120 million, looks fairly good value, and there are of course the other potential prospects comming on line. PE<10
Lets have some views.

Whens the next set of results due?

June 22, 2011

Operations Update
Production currently averaging about 2,500 bopd, primarily from 7 wells

Autumn production enhancement programme planned to re-frac, with larger frac sizes, existing wells on Pad 1 and new wells on Pad 2

Planned number of wells required from Pad 3 to be reduced recognising thinner oil pays

Extension of Lineynoye oil field north of Pad 2 with thicker pay zones expected in the longer term to compensate for reserve and production reductions from Pad 3

Q1 2012 production target has been revised to between 4,000 to 5,000 bopd and Q2 2013 to between 7,000 to 9,000 bopd

Update: PetroNeft tumbles amid lower production targets
Wed, 22/06/2011 - 10:12 | Fiona Bond

Russian-focused oil and gas explorer PetroNeft Resources (PTR) saw its shares plummet almost 20% on Wednesday morning after it lowered its production targets.

The company has revised its first-quarter 2012 production target to between 4,000 and 5,000 barrels of oil per day (bopd), down from its previous objective of 7,000 - 8,000 bopd.

Looking further ahead, it has set itself a range between 7,000 and 9,000 bopd in the first quarter of 2013.

Its current production is averaging around 2,500 bopd, primarily coming from seven of the nine wells drilled last year.

The company's more conservative approach to output stems from its decision to reduce the number of wells drilled from Pad 3 on the Lineynoye oil field as a result of thinner oil plays.

In turn, PetroNeft will increase the number of wells drilled from Pad 2, where results have so far proved pleasing to the company, revealing the northern part of the Lineynoye field to have thicker pay and extend further than originally anticipated.

However, this will mean fewer wells available for production in 2011, thereby reducing the company's near-term production rate, PetroNeft said.

Chief executive Dennis Francis commented: "While the results of Pad 2 drilling are encouraging, the Pad 3 drilling results will limit near-term production growth. We are currently producing from less than 10% of our current discovered reserves and this year's exploration programme has the potential to double these reserves and hence our long-term production capability."

PetroNeft's high impact 2011 exploration programme is targeting over 100 million barrels net to the company on five prospects spanning Licences 61 and 67.

The Kondrashevskoye No 2 sidetrack well on Licence 61 is progressing on schedule, with results expected in early July, the company said. A second exploration well will be at Sibkrayevskaya, a prospect of over 40 million barrels. The site for a third exploration well, North Varyakhskaya No. 1, has also been prepared and is set to spud in August/September time.

Meanwhile, two exploration wells, Cheremshanskaya No. 3 and Ledovoye No.2a on Licence 67 will be drilled in the second half of the year.

"We remain confident in the longer-term reserve and production potential of Licences 61 and 67," Francis added.

Oil and gas analysts at Ambrian published a note: "In reaction to this update, Petroneft has been significantly marked down, reflecting disappointment over current hydrocarbon flow rates.

"Despite the clear negative tone of the announcement, we highlight that although near-term production will be reduced, overall field reserves are likely to sustain a much smaller decrease in absolute percentage terms due to the discovery of thicker-than-expected net pay sections to the north of Pad 2. This serves to moderate the overall decrease in total asset value over the life of the field; however, the short-term impact in cashflow terms will clearly be more material to the company's development planning and will serve to push back the profit point.

"Whilst we reiterate our 'buy' recommendation, we move to reduce our target price from 108p to 83p."

Prelimernary results 11-5-11
Interim res 9 -9 - 10

Looks like interim results due sept 2011

Operations Update





PetroNeft Resources plc (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to provide an update on its operations.





Highlights:



Kondrashevskoye No. 2 sidetrack well confirms 2P reserves

Lineynoye 206 contains thickest oil pay encountered to date

Lineynoye/West Lineynoye has materially thicker pay and extends significantly further north than originally anticipated

Several new oil bearing structures are now likely to the north of Lineynoye/West Lineynoye



Licence 61 Exploration/Delineation programme



The Kondrashevskoye No. 2 sidetrack has been drilled down dip from the Kondrashevskoye No. 2 well and penetrated the oil water contact in the objective J1-1 sandstone interval at -2,465 m true vertical depth ("TVD"). The reservoir interval of 3 metres in the sidetrack section was slightly thicker than in the vertical well with the top metre of the reservoir oil bearing.



Based on the results, the well has most likely confirmed the existing independent Ryder Scott 2P reserves of 8.1 mmbo attributed to the field and we will now update the reserves with the Russian State Reserve committee in preparation for field development. The exact timing of development will depend upon how the economics of this field compares with other nearby fields, most notably Arbuzovskoye.



Production casing has been run and cemented in the well so it can be used when the field is developed. The drilling crew is in the process of moving to the potentially high impact Sibkrayevskaya exploration prospect which will commence drilling shortly.



Licence 61 Development programme



The Lineynoye 206 development well drilled from Pad 2 to the north contained 21.9 metres of gross sandstone with 18.5 metres of net pay which is the thickest net pay interval encountered to date in the drilling programme. The reservoir interval was completely saturated with oil and confirmed an oil-down-to of -2,437.5 m TVD, some 15 metres deeper than the previously mapped structural spill point of the field to the north.



The results of this and other recent Pad 2 wells have shown that the northern part of the Lineynoye field has materially thicker pay and extends significantly further north than originally anticipated. This has positive implications for reserves and productivity in this region of the field and for the likelihood of several new structures north of Lineynoye/West Lineynoye to be oil bearing.



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



"We are pleased to have proved reserves for economic development at Kondrashevskoye and will incorporate this discovery along with Arbuzovskoye in our 2012 development planning. Pad 2 drilling continues to be very encouraging with the thickest oil pay encountered yet indicating an increased probability that oil has migrated north from the Lineynoye/West Lineynoye field into the various structures contained in the undeveloped Emtorskaya High area."

Davys update looks good for the near term sp

Petroneft has issued an RNS confirming that 4 Directors (including the CEO and CFO) bought 440,000 shares at prices between 35.25p & 35.71p yesterday following their exploration and operational update.

We also understand that the draft law on MET decrease for small oil field was approved by the Russian Duma in the second reading late yesterday afternoon. If approved in the third reading (which is as a rule a technical reading only) we understand the legislation would be in force starting January 1, 2012. This would be a very positive development for Petroneft. Previously the company have indicated that half their current reserves would qualify for the reduced rates of Mineral Extraction Tax under the proposed legislation. Given that netbacks in Russia are broadly $10-$12 per bbl, an additional c.$5 per bbl would be very significant. Our NAV for Petroneft is 62p. The MET changes if introduced would increase it to 70p

http://www.deweyleboeuf.com/~/media/Files/clientalerts/KeyChangesinRussianTaxLegislation.ashx

A couple of posts regarding the effect it could have on PTR,suggesting a screaming buy?? imho

I done some calculations regarding the MET discount for small oil fields based on current reserves and using a sliding scale.
Kondrashevskoye 8.12 million barrels 49% discount = $ 79 million extra.
Arbuzovskaya 13.24 million barrels 40% discount = $ 106 million extra.
Tungolskoye 15.48 million barrels 36% discount = $ 113 million extra.
Ledovoye 15 million barrels 37% discount = $ 111 million extra.
Total for these 4 fields alone is $ 409 million extra.


Eventually the penny will drop regarding the upside on Lineynoye / West Lineynoye field and other structures to the north because of the oil down to 2437.5 mtrs in well 206 and a net pay thickness of 18.5 mtrs within 21.9 mtrs of sandstone.
This is 15 mtrs deeper than previously thought and will lead to significant reserve increase for the Lineynoye / Lineynoye fields alone.
The discount on Mineral extraction tax for small fields will also give a serious boost to the profit margin once it comes into effect.

http://www.reuters.com/article/2011/07/21/russia-energy-tax-idUSLDE76K14E20110721

and:

Petroneft (USc) (PTR LN)
Price: $0.51 Rating: Outperform Issued: 09/08/10
Russian president signs into law reduced tax bill for small oil fields
Caren Crowley

FACTS: On July 21st, a new bill to encourage the development of smaller oil fields in Russia by reducing the Mineral Extraction Tax (MET) payable was signed into law by the Russian president. The law comes into effect on January 1st 2012.

ANALYSIS: The law allows for a sliding scale reduction in the MET for fields below 5m tonnes, roughly 37m barrels. The maximum reduction will result in a halving of the MET rate. This will occur for fields up to 7.5m barrels, whereas fields containing 30m barrels will receive only a 12.5% discount. Fields containing 22.5m barrels will receive a 25% discount and so on. The MET rate relief will have a material impact on cash net back to producers of small fields, such Petroneft. Petroneft believes the tax relief can boost cash from operations by $8m in 2012 alone. The impact should be greater in future years. In other words, there is a potential additional profit margin of $7 per barrel (at $80 per barrel export price) versus a typical profit margin of $10-12 per barrel for Western Siberian oil fields.

DAVY VIEW: The new law is very good news for Petroneft. At present we see the tax change improving our NAV of 62p per share to 70p per share. However, we believe the additional value could be greater than our initial 8p per share estimate as our model is based on an older field development schedule. We believe management will optimise its development programme to maximise the benefit of the new tax relief.

BINGO! LOL

04 August 2011

PetroNeft Resources plc

("PetroNeft" or the "Company")

Discovery of Significant New Oil Field at Sibkrayevskaya

PetroNeft Resources plc (AIM: PTR), the owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to announce its largest single discovery to date, a new oil field at Sibkrayevskaya in Licence 61.

Highlights:

-- Sibkrayevskaya No. 372 well makes significant oil discovery in main Upper Jurassic target

o Approximately 12.6 metres of net oil pay in J1 interval - exceeding pre-drill estimates

o Good reservoir properties indicated with oil saturation throughout

o Open hole inflow test of 170 bopd (unstimulated)

o Sixth oil field discovered in Licence 61

-- Development drilling at Lineynoye continues to push field boundary significantly further north and encounters materially thicker pay

o An additional well is now planned to be drilled 500 metres beyond the most northerly well to date

-- Exploration to commence at Licence 67 with first well scheduled later this month

-- Russian Mineral Extraction Tax reduction law passed and comes into effect on 1 January 2012

o Enhancing profit margin from qualifying fields

Sibkrayevskaya No. 372 well

The Sibkrayevskaya No. 372 well at the Sibkrayevskaya prospect located in the north east corner of Licence 61 was spudded on 9 July 2011. It was a follow up to well No. 370 which was drilled in 1972. A comprehensive re-interpretation of the vintage well logs and drilling data from the 370 well using digitalised logs and modern interpretation tools had indentified potential "missed pay" in the Upper Jurassic J1 interval. In the new well, No. 372, the Upper Jurassic J1 oil reservoir horizon was intersected as expected at -2,350.5 metres true vertical depth. Preliminary evaluation of the logs indicates that the J1 interval consists of 12.6 metres of net pay with good reservoir properties and oil saturation throughout, exceeding pre-drill estimates. An open hole test was conducted over this interval and tested at a pro-rated inflow of 170 bopd unstimulated. Based on preliminary analysis, the oil is of good quality with an API gravity of 37 degrees, which is consistent with other fields in Licence 61.

Sibkrayevskaya is a very large structure which will require additional seismic and well delineation. The 372 well was drilled in a flank position on the structure and current mapping shows an area of over 50 square kilometres up dip from the oil-down-to level defined in the well. Current indications are that the ultimate recoverable reserves in the field could be significantly larger than the 44 million barrel pre-drill target defined by Ryder Scott for the prospect. The discovery also extends the area of known oil to the northeast corner of the licence area and improves the prospectivity of other structures in this area.

This discovery well adds a sixth oil field to Licence 61 and proves the strategy of following up on re-interpreted well logs from old wells that show potential by-passed oil pay zones. It is hoped to further appraise the Sibkrayevskaya oil field with a seismic programme and the drilling of at least one appraisal well in 2012.

Licence 61 Development programme

Two further development wells have been drilled from Pad 2 at the Lineynoye oil field. Well 208 encountered 8.8 metres of net oil pay. Well 207, which was the northernmost well drilled to date encountered 17.8 metres of net oil pay. This well was drilled at a location that had originally been interpreted to be outside the boundaries of the oil field and the result further proves that the Lineynoye field extends much further north than previously estimated. An additional well will now be added to this year's programme at Pad 2 to drill the reservoir approximately 500 metres further north of the 207 location.

The results of well 207 and other recent Pad 2 wells have shown that the northern part of the Lineynoye field has materially thicker pay and extends significantly further north than originally anticipated. This has positive implications for reserves and productivity in this region of the field and for the likelihood of several new structures north of Lineynoye/West Lineynoye to be oil bearing.

Licence 67 Exploration programme

Exploration on Licence 67 is due to commence shortly. The mobilisation of the drilling rig to the Cheremshanskaya site has been completed and rig-up operations are underway. It is expected that the well will be spudded later this month. The well is targeting objectives at the Upper, Middle and Lower Jurassic horizons following up on previously drilled wells. The well will take up to two months to complete drilling and testing.

Mineral Extraction Tax (MET) reduction law for small fields

The MET reduction law for small fields was signed into law by President Medvedev on 21 July 2011. The law will become effective from 1 January 2012. The law is applicable to undeveloped fields with Russian C1+C2 recoverable reserves below 5 million tonnes (approximately 37.5 mmbbls). The law applies a sliding scale of discounts depending on the initial size of the field. The Arbuzovskoye field which is the focus of our development activities for next year has Russian registered C1+C2 recoverable reserves of 1.3 million tonnes and consequently it will qualify for a 46% MET discount. This will significantly enhance the profitability and cashflows of the Arbuzovskoye and other qualifying oil fields and accelerate the development of such fields in the Licence area.

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

"We are delighted with the discovery at Sibkrayevskaya, a significant new oil field which is our largest single discovery to date in terms of reserves. This is an especially important discovery, because it proves our strategy of following up on previously drilled structures by re-interpreting old well data using modern software and techniques to identify by-passed pay. The two well exploration programme now commencing at Licence 67 is also based on re-interpreted data from old wells. We look forward to updating shareholders on the results of these wells later in the year. "

Good result......this will be 100p or more at some stage....

Brokers note,

Davy Stockbrokers Today

Petroneft
(PTR LN)

Discovery to boost reserves by at least 45%; latest development wells very promising

04 August 2011
Caren Crowley

Closing Price:
$0.53

Rating:
Outperform

09/08/10
FACTS: Petroneft has released an operational update.

ANALYSIS: Petroneft has made its largest single discovery to date with the Sibkrayevskaya well on Licence 61 (Petroneft:100%) in Western Siberia. The well was drilled on the Sibkrayevskaya structure in the north-east corner of Licence 61 and was following up on potential by-passed oil pay identified from a re-interpretation of the electric logs from a well drilled in 1972.

Prior to drilling, the Sibkrayevskaya structure was thought to hold 44m barrels (mmbbl). On this basis, we estimated a discovery at Sibkrayevskaya could add just over 6p to our 70p valuation for Petroneft. This looks conservative now.

Based on results from the Sibkrayevskaya well, management believes that the ultimate recoverable reserves could be significantly larger than the 44 mmbbl pre-drill estimate. To contextualize this, a 44mmbbl discovery could boost Petroneft's proven and probable reserves by 45%. Preliminary results reveal a net pay thickness of 12.6m versus pre-drill estimates of up to 8.4m with good reservoir quality. An open hole test on the oil saturated interval flowed 170 bopd (unstimluated).

An appraisal well to define the size of the Sibkrayevskaya field is planned for 2012.

Elsewhere, log results from two more development wells on the Lineynoye oil field display material thicker net pay. This has positive implications for productivity (something Petroneft has struggled with) and reserve upgrades.

Exploration on Licence 67 is due to commence shortly with the spudding of a well on the Cheremshanskaya prospect. The exploration strategy for this prospect is the same as that for Sibkrayevskaya, that is, the Cheremshanskaya well will twin an old Soviet well to explore for by-passed pay. The well is targeting 30mmbbl net to Petroneft from multiple horizons. The well is due to spud later this month and is expected to take two months to complete.

DAVY VIEW: This is very good news from Petroneft. The successful oil discovery at Sibkrayevskaya adds at least 6p to our 70p per share valuation. The stock deserves to rally on this news.

http://www.davy.ie/LR?id=1393

RF an excellent result would be a apt discription,net play some 50% greater than expected. One could say it's negative in so much as it exceeds the field size for tax
relief,not that it is.The new tax laws coming in Jan 2012 are believed to be worth $8m
extra profit to PTR and adds credence to the 1 you mentioned,couple todays news with expected reserve update and doubling of production year end,migght make that a little conservitive??

PetroNeft; Positive drilling update

PetroNeft released an update this morning outlining results for the Sibrayevskaya exploration well, data from the latest development wells to be drilled on Pad 2 and provided confirmation of the recent signing into law of a reduction in Mineral Extraction Tax (MET) for fields below the 5 million tonne (37.5 mmbbls) threshold. With respect to Sibrayevskaya net pay of 12.6 metres was encountered of good quality oil (37 degree API), which flowed at an un-stimulated rate of 170 bopd. As the well was drilled towards the flank of the structure with an estimated 50 sq km up-dip and as the pay encountered was in excess of pre-drill estimates (c.8-9m) guidance now suggests that the field reserves may be in excess of the 44 mmbbls originally estimated by Ryder Scott. To ascertain the recoverable volumes further seismic and up to two additional appraisal wells will be drilled, one of which is now scheduled for 2012. The drilling crew will now move to drill the North Varyakhskaya prospect on Licence 61, to target an estimated 6 mmbbls, which given proximity to the current production base could be tied-in relatively easily should the well come in on prognosis.

On the development front, results are provided for the 207 and 208 wells drilled on Pad 2. The latter is located to the west of the pad and yielded net pay of 8.8m. The former is to the north of the pad and yielded net pay of 17.8m. The significance of the location of the 207 well is that it is located beyond the original reserve boundary and thus adds to the belief that pay rates extend further to the north east than originally thought. To further test the extent of the development base from Pad 2 a follow-on well is now planned to be drilled c.500m north of the 207 well. The above aside, confirmation is also provided of the pending commencement of drilling activity on Licence 67 (PetroNeft 50% interest) where the Cheremshanskaya well (30 mmbbl target net to PetroNeft) is due to spud later this month with a result due c.2 months later.

While the PetroNeft share price has been weighed down of late due to the slower ramp up in production than originally guided, this mornings statement underlines the potential to add to the reserve base, which will have longer term benefits for the production base as those prospects are developed. Not to be outdone, the trend in terms of net pay north of Pad 2 also holds out the prospect that the lower pay encountered on Pad 3 can be counteracted from development activity north of Pad 2 and thus provides a greater degree of confidence that PetroNeft can achieve production targets beyond the current year.

Recommendation; Buy
Closing Price: 0.33
Gerry Hennigan
T +353-1-6419274
E gerry.f.hennigan@goodbody.ie

I'm staying put with my holding no matter what....the problem is that I would have added but I'm getting stuffed elsewhere....

little lazy so i've copied this post by a knowledfable investor,sums up the potential.

the other hand one could hardly have much fear of being invested here, The company should have in the region of 160 million barrels after the latest success and have a good chance of adding another 80 million odd before year end. production due to increase significantly once the hydraulic fracturing is completed and most importantly they have no funding concerns in the foreseeable future.

Dam cheap imo,not far off a dollar a barrel,excluding 2500bopd and increasing,could be 500bopd+ come year end?

Not if double dip comes.

Why has the share price been so dormant lately?

At least it's up today....should be 3 times this price...

Has risen 2 days on the trot,high volune today,1.322m traded.Is news on the horizen ?

what is the actual date for ptr's results coming this month?

I don't know of thr date,bit if last years interims are anything to go by(Sept8th)soon?

PetroNeft Resources Plc

Chairman's Statement


Dear Shareholder,

To date, 2011 has seen further significant progress for PetroNeft. Our exploration programme has resulted in our largest discovery to date at Sibkrayevskaya and drilling results at two of our other targets are due in September. On the production well drilling, while we had a disappointing result at Pad 3 to the south, we have significantly extended the Lineynoye oil field beyond previous estimates to the north of Pad 2 where we continue to encounter encouraging net oil pays in the northern portion of the field. On balance, we expect the Lineynoye field reserves to remain about as predicted earlier, while very substantial reserves will be added at year-end as a result of our 2011 exploration drilling programme.

Production
Production in the six months to 30 June 2011 was 399,327 barrels of oil or an average of 2,182 bopd. During January and February most of the wells were offline in order for the hydraulic fracturing programme to be carried out. This programme achieved good results and provided essential information that will help us optimise the design of these programmes in the future to achieve even better results.

Beginning in October 2011, we plan to carry out a new fracture stimulation programme of about eight wells primarily focussed on new wells at Pad 2. In the first quarter of 2012 we will carry out a further fracture stimulation programme on the remaining wells drilled during 2011 and, depending on the results, we may also re-frac some of the Pad 1 wells that initially had smaller fracture stimulations carried out in early 2011.

Development drilling programme
At the beginning of 2011 we planned to drill 17 new production wells at the Lineynoye oil field, nine at Pad 2 and eight at Pad 3. We now expect to drill a total of 14 or 15 wells this year, all but two of which will be from Pad 2.

At Pad 2 we have now drilled ten wells and expect to drill two or three more before the year end. The principal reasons for adding wells at this location were the thicker than expected net pay encountered and discovering that the field extends further north than expected. At Pad 3 the first two wells encountered thinner net pays than anticipated and we took the decision to suspend drilling from this pad in order to test the two wells over the coming months and re-allocate technical and financial resources to drill additional wells north of Pad 2 where thicker pays have been encountered.
The results at Pad 3 led us to amend our near term production targets at the end of June 2011. While we will lose some reserves from the Pad 3 area when we compile our year end reserve report we are confident that this will be substantially offset by reserve additions north of Pad 2. The results we are achieving from the drilling at Pad 2, combined with updated seismic interpretations that incorporate the drilling results, also indicates that not only are the Lineynoye and West Lineynoye oil fields connected but that the overall Lineynoye field could extend significantly further north and be connected to the Emtorskaya high north of Lineynoye.


Exploration
Five exploration/delineation wells will be drilled in 2011, three at Licence 61 and two at Licence 67. Two have been drilled to date, one of which led to our largest discovery to date at Sibkrayevskaya. The third and fourth wells are in progress and their results should be available shortly.

Licence 61
The Kondrashevskoye No. 2 well was completed in June 2011 and encountered 2.3 m of net pay in the J1 interval, similar to the 2008 discovery well. The well tested high quality 41⁰ API gravity crude oil at a prorated inflow rate of 32 bopd on a short open hole test (without stimulation). As neither Kondrashevskoye well encountered the oil water contact for the field we sidetracked the No. 2 well down-dip to locate the oil water contact and determine the full reserve potential of the field. The reservoir interval of 3 metres in the sidetrack section was slightly thicker than in the vertical well with the top metre of the reservoir being oil bearing. Production casing has been run and cemented in the well so it can be used when the field is developed.

Based on these results, the well has most likely confirmed the existing independent Ryder Scott 2P reserves of 8.1 mmbo attributed to the field and we will now update the reserves with the Russian State Reserve committee in preparation for field development. The exact timing of development will depend upon how the economics of this field compares with other nearby fields, most notably Arbuzovskoye.

The second well in this year's programme was drilled at the Sibkrayevskaya prospect. The well was spudded in July and target depth was reached in early August.

The Sibkrayevskaya No. 372 well was a follow up to well No. 370 which was drilled in 1972. A comprehensive re-interpretation of the vintage well logs and drilling data from the 370 well using digitised logs and modern interpretation tools had indentified potential "missed pay" of 8.4 metres in the Upper Jurassic J1 interval. In the new well, the Upper Jurassic J1 oil reservoir horizon was intersected as expected and encountered 12.3 metres of net pay, exceeding pre-drill estimates. An open hole test was conducted over this interval and tested at a pro-rated inflow of 170 bopd unstimulated. The oil is of good quality with an API gravity of 37 degrees, which is consistent with other fields in Licence 61. The well has now been cased and a programme of drill stem testing is in progress.

Sibkrayevskaya is a very large structure which will require additional seismic and well delineation. The 372 well was drilled in a flank position on the structure and current mapping shows an area of over 50 square kilometres up dip from the oil-down-to level defined in the well. Current indications are that the ultimate recoverable reserves in the field are likely to be significantly larger than the 44 million barrel pre-drill estimate defined by Ryder Scott and the field will certainly be an important commercial development project for PetroNeft. The discovery also extends the area of known oil to the northeast corner of the licence area and improves the prospectivity of other structures in this area.

The final well to be drilled at Licence 61 in 2011 is at North Varyakhskaya. This well was spudded in August and a result is expected in September.

Licence 67
Two exploration wells are planned at Licence 67 in 2011. The first well, at the large Cheremshanskaya prospect, was spudded in late August. The well is targeting three separate horizons at the Upper, Middle and Lower Jurassic zones. Each horizon will be cored, tested and logged separately and initial results are expected in late September with results of lower horizons coming in October.

The second well at Licence 67 is at the Ledovoye oil field to delineate the Upper Jurassic zone but also targeting the Lower Cretaceous horizon. This well will spud in November with results expected in December.




Successful debt refinancing
In March 2011 PetroNeft agreed a revised debt facility with Macquarie Bank. The new loan is a longer term scalable borrowing base facility with increased flexibility at lower cost. Under the three year loan the initial available amount will be US$30 million with potential to increase up to US$75 million through the addition of new discoveries and developments subject to credit approval. The borrowing base will be reviewed every six months. The first review was completed in July 2011 and re-confirmed the US$30 million availability.

Financial results for the period
The net profit after tax for the period was US$3,067,178 (June 2010 loss: US$(5,287,356)). The profit includes a foreign exchange gain of US$5,969,474 on loans denominated in US Dollars, Russian Roubles and Euro from PetroNeft to its Russian subsidiaries Stimul-T and Lineynoye whose functional currency is the Russian Rouble.

Great news today, buy no price movement up... Market Manipulation?

Discovery of New Oil Field at North Varyakhskaya



PetroNeft Resources plc (AIM: PTR), the owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to announce the discovery of another new oil field in Licence 61 at North Varyakhskaya.



Highlights:

Seventh oil field discovered in Licence 61

North Varyakhskaya No. 1 well makes oil discovery in main Upper Jurassic target

o 2.2 metres of net oil pay confirmed in J1-1 interval

o Open hole inflow test of 36 bfpd (unstimulated)

o Good quality oil - 36 degree API

o 2.5 metres of potential additional net pay in J1-2 interval requiring further testing

Development drilling at Lineynoye continues to push field boundary significantly further north

o Several wells have encountered materially thicker pay beyond the originally expected northern field boundary and have pushed the observed field oil-water contact at least 5 metres deeper

211 well encounters second thickest net pay interval to date

o One additional well is now planned to be drilled to the north of the last two wells

Exploration commenced at Licence 67 with first well now coring the uppermost objective with oil shows in the core.



North Varyakhskaya No. 1

The North Varyakhskaya No. 1 well at the North Varyakhskaya prospect located 6 km to the east of the Lineynoye Central Processing Facility was spudded on 17 August 2011. The well, which was drilled on the crest of the structure, has encountered approximately 2.2 metres of net oil pay in the J1-1 reservoir interval in a gross sand package of over 5 metres. There is also an additional 2.5 metres of potential oil pay in the J1-2 reservoir interval that will require more detailed logging and testing to confirm. A short open hole test of the J1-1 interval produced an inflow of 36 bfpd consisting of oil and mud filtrate. The oil is of good quality, 36 degree API, which is consistent with other oil fields in the Licence area. This preliminary test indicates that the reservoir will need fracture stimulation for economic development, as is usual in the area.

Great news today also, but the shareprice has got me asking the same question again..

No, theone23. Quite a few companies have produced good drilling resilts recently, yet the sp's have barely moved or have, in fact, gone down. The whole market is weak atm, with many investors seeking safer stocks with some kind of return. When investors are making money and seeking the more risky stocks then many of these will surge ahead, imo, but not yet.

At some stage this will take off, we just have to be patient ; I have a target of something above 100p !.

Just saying, early august this went to the 40p region, on a new field discovery, when the market was in a very bad place. I believe the news title was ptr only riser or something along those lines.. Now its had two great announcments and nothing? Hmm.

etroneft
(PTR LN)
Update on operations points to discovery of new oilfield and first signs of hydrocarbons on important Licence 67 well
21 September 2011
Job Langbroek
Closing Price: $0.44 Rating: Outperform 09/08/10

FACTS: Petroneft has reported that the North Varyakhskaya well has 2.2 metres of oil-bearing reservoir. Drilling on the northern extension of the Linenoye field continues to hit further thick reservoir sections of oil pay. The Cheremshanskaya #3 well, the first on Licence 61 to be drilled by Petroneft, has hit oil shows and is currently coring.

ANALYSIS: The North Varyakhskaya is the third field to be discovered on Licence 61 this year. It has hit oil in the J1-1 sand, the uppermost of the two normal Jurassic targets. A further 2.5 metres of possible pay was also hit but needs further testing to confirm if this is the case. The J1-1 sand flowed at 36 barrels per day on test, indicating that fraccing will be required (as is normal for these fields). North Varyakhskaya qualifies for the full MET relief of 50%.

The drilling at the northern end of the Linenoye field continues to turn up good thick reservoir, and the observed oil water contact is now at least 5 metres deeper which bodes well for reserve additions.

The first well by Petroneft on Licence 67, Cheremshanskaya #3, is currently coring and hydrocarbons shows have been seen. This is the first of three target zones in a well that has material reserve implications. The first zone alone could add up to 30m barrels net to Petroneft.

DAVY VIEW: We currently value Petroneft at 80p per share and the news today from North Varyakhskaya is expected to be NAV accretive, although probably limited in scale given the size of the intersection. While we await the final outcome of the drilling programmes to the north of the Linenoye field and the group's first well in the Licence 61 (should read "67") Cheremshanskaya structure, both operations have the potential to add material quantities of reserves and hence additional value.

http://www.davy.ie/LR?id=17

Wake up cyril.

PTR have a M/Cap of 110m and P2 reserves around 150mbo,so a little over $1 a bareel oil,Daveys 80p SP would suggest they value oil at $3bo? So why the low price,well imho it's more to do with failure to increase production,2100bopd day is not good enough to
produce any whorthwhile profit in Russia. It was supposed tp be 8000bopd end of this year,but now Q2 2012 for 4/5k of bopd,so the market is not impressed.
It would be nice to have a RNS stateing the fraccing so far has been sucessful and production is in excess of 3000bopd with more to come,wishful thinkung,me thinks?
we now wait for the drilling of Ledovoya 2a well,with results sometime in Nov. I'm holding at these levels,hope i'm wrong but no great improvement until 2012? aimho.

Edil
Bernard, My post was for the brokers comments.

It's the production levels that are holding back the sp.....just has to climb at some stage as wells are brought on line.

RF,spot on,enough to make worthwhile profit,bottom line.

seems to be in a tailspin at the moment.

Very dramatic drop, not fun to watch..

Seems to have settled and not wanting to come backup.

Ledovoya2a well news should be with us 2/4weeks,fraccing continues witch should dramatically improve flow rates? Hopefully 3500+bopd by year end and a favourable
oil tax starting in the 2012.All with price of oil holding above $80 should imho reward the patient,assuming markets conditions hold up?

http://www.investegate.co.uk/Article.aspx?id=201110190700174269Q

Highlights:
Cheremshankaya No. 3 well discovers two hydrocarbon pools
o Oil discovery in main Upper Jurassic target
o Gas/oil discovery in Lower Jurassic target
o Successful open hole inflow test on both intervals
Development drilling at Lineynoye continues to push field boundary further north
The hydraulic fracturing programme at Lineynoye to commence shortly

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

"We are pleased to announce another new discovery at Cheremshanskaya. Initial results are encouraging, however, the field will require further detailed testing and delineation to determine its ultimate size and productivity. The field is located in an area of well developed infrastructure so it may be possible to fast track pilot production once we complete the testing programme.

It has been a year of substantial progress on the exploration front with the very significant oil discovery at Sibkrayevskaya and follow-up discoveries at North Varyakhskaya and Cheremshanskaya. We look forward to completion of the final well in our exploration/delineation programme at Ledovoye."

his interview was on Upstream....

Cheremshanskaya 'to produce in 2013/2014'
Development at PetroNefts just-announced Cheremshanskaya discovery in western Siberia is set to start in 2013 or 2014, Upstream can reveal.

Bill Lehane 19 October 2011 13:16 GMT

Speaking to Upstream, PetroNeft chief financial officer Paul Dowling said that the Russia-focused player would be concentrating on further testing at the Cheremshanskaya discovery in Licence 67, Tomsk Oblast for the rest of the year.

Depending on the results of that we will likely need at least one more delineation well and maybe some seismic data, he said.

PetroNeft is required under basic licencing for the prospect to drill one well and acquire 750 kilometres of new seismic data in the first three years. It has already drilled two wells but has not yet acquired any new seismic data.

Dowling said that the company would likely conduct a seismic survey of the whole Licence 67 area in mid-to-late 2012, concentrating on the Cheremshanskaya section.

So probably the earliest that Cheremshanskaya would come into development would be 2013, maybe even 2014 would be a more realistic scenario, he said.

PetroNeft owns 50% of the licence, with Vitol subsidiary Arawak Energy holding the other half.

The company has also tasted success in both exploration and production in recent months at its other Tomsk Oblast property, Licence 61, where it is a 100% owner.

PetroNeft expects production at the prospect's Lineynoye field to hit 5,000 barrels per day early next year.

Dowling said that there was a lot of focus among investors on the companys hydraulic fracturing program about to start at Lineynoye, with traders pretty keen to see the results.

He said the program would get under way in the next ten days or so but results would not emerge until December.

Well be fracking about eight wells in the first half of November, but we reckon itll be early December before weve done enough wells and were able to report back to the market on how successful the program was, he said.

In August, the company made a discovery at Sibkrayevskaya, and another smaller discovery in September at North Varyakhskaya, both also in Licence 61.

The Sibkrayevskaya find - which, like Cheremshanskaya was at a former Soviet prospect - considerably beat expectations, Dowling said.

At Sibkrayevskaya we were following up on a 1972 well that at the time they thought didnt discover oil. But when we went in and re-analysed the old well logs we thought that theyd missed some pay in the Upper Jurassic of about 8.5 metres, he said.

And sure enough when we drilled a parallel well we got about 12 metres of net oil pay in the main Upper Jurassic target and we got a decent flow rate of 170 barrels of oil per day there, Dowling said.

We had a pre-drill reserves target of about 44 million barrels and were pretty comfortable that weve nailed that number with the discovery well, he said.

We think the field is probably a good bit better so a delineation well next year will be required to prove that its bigger, he added.

He said the project would benefit from largely pre-existing infrastructure, with only a 30 kilometre to 40 kilometre tie-in pipeline to be built back to its central processing facilities when it reaches development in a couple of years.

Listed on Dublin's Enterprise Securities Market and London's Alternative Investments Market, PetroNeft Resources is an international oil and gas exploration and production company focused on Russia.

Published: 19 October 2011 13:16 GMT | Last updated: 19 October 2011 13:52 GMT

PEEL HUNT.

Visibility on reserves and production growth

PetroNeft Resources has an existing production base of c2,000bbl/d with 2P reserves of 96MMbbls. We believe PetroNeft will realise organic growth in both reserves and production over the next 12-18 months. We argue the shares are oversold and now represent an attractive buying opportunity. We initiate
coverage with a Buy recommendation and 54p/share target price, representing 126% upside from current levels.

Reserve base cheap in relative terms Versus our modelled recoverable
reserve of 110.9MMbbls, PetroNeft is currently trading at c$1.6/bbl, or broadly
half the level at which typical Russian reserves usually trade ($2-4/bbl is normal).

Ongoing drilling activity With an estimated 14-15 new development wells
and five exploration wells planned to be drilled in 2011, PetroNeft has been very active with the drill bit. We see this high rate of drilling continuing into 2012 as a further 14 development wells are completed, all of which are likely to be located at the new Arbuzovskoye field development. Latest production guidance sees a Q1 2012 exit rate of 4-5,000bbl/d, rising to 8-9,000bbl/d by end-2012.

2011 provided mixed results At PAD 3 the first two wells intercepted thinner than expected net pay; as a result further drilling has been suspended pending more analysis. However, at PAD 2, additional wells have been added to the drilling schedule, following thicker than expected net pay zones that were
intercepted towards the north of the main Lineynoye field.

Reserves upgrade likely Given the sub-optimal drilling results at PAD 3, we
anticipate a downward revision of reserves at this location. However, we expect
this to be more than offset by reserves additions associated with better than
expected results to the north of PAD 2. Overall therefore we anticipate a
significant net reserves upgrade in the year-end reserves report (due Q1 2012).

Valuation and recommendation We initiate coverage on PetroNeft with a
Buy recommendation and RENAV-based target price of 54p/shar

Slightly dated( 1 week) but still it paints a good picture and with a presentation tomorrow at
Oilbarrel,i'm hoping for a re-rating of the SP which is up 4% today at 21p.

http://www.iii.co.uk/tv/episode/petroneft-ptr

http://www.investegate.co.uk/Article.aspx?id=201112060700243860T

DAVY VIEW: We expect some comfort to be taken from the renewal of production guidance. Moreover, with a well drilling and some early indications that the fracing outcome is moving in the right direction, we think the market will look to the upside. We do not expect another update until January; however, with a well running and testing results to come from Cheremshankaya, newsflow is assured. Our NAV is 80p per share; with very undemanding EV multiples of c.$1 per barrel, the stock looks attractive at these levels.

http://www.davy.ie/LR?id=2459

oilbarrel conference write up:

The markets may be in the doldrums, beset by the Eurozone crisis and economic contraction, but oilbarrel.coms final conference of 2011 attracted a large crowd of investors, industry executives and financiers. For while many companies are feeling the pinch as share prices continue to flag and lenders run scared, it is fair to say that the current dismal environment presents plenty of opportunities for canny investors.

Indeed, there were those running a slide rule over the first presenter of the day, PetroNeft Resources. This AIM-quoted E&P has two licences in the Tomsk Oblast region of Russia where it boasts production of 2,500 barrels per day and has nearly 100 million barrels of 2P reserves yet the market cap is just 85 million and the shares are currently trading at half the level of a year ago.

As CEO Dennis Francis explained, the company has not yet recovered from the share sell off when it missed production targets in 2010; it dropped further this summer when the company announced a rethink of its Lineynoye oil development in Siberia, again signposting further delays in the ramp-up of the production profile.

Despite this, Francis was willing to hold himself hostage to fortune again, proposing a new production target of 4-5,000 bpd by the end of Q1 2012, with output hitting 7,000-9,000 bpd by the end of Q1 2013. Francis said he was very comfortable with the Q1 2012 guidance.

This near-term production gain will come as the company completes its fraccing programme at Lineynoye on its 100 per cent owned Licence 61. This stimulation programme has been a learning curve for PetroNeft, with the company now applying larger fracs than in Q1 2011 (the company had been seeking to avoid fracturing into possible underlying water sands but this is no longer an issue now that water-handling facilities are in place, with the water re-injected for pressure maintenance) and refraccing some of the wells. Importantly, in rethinking its model of the Lineynoye field, which caused such a panic among investors this summer, the company has now identified additional potential to the north, what it calls the Emtorskaya High prospects, where there could be another 70 million barrels in the J1-1 and J1-2 sands.

PetroNeft has also been enjoying some success on the exploration front in the northern part of Licence 61. The Sibkrayevskaya discovery was a re-look of the 1972 Sibkrayevskaya-370 well and successfully found 12.3 metres of missed oil pay in the Soviet-era well. The well flowed 170 bpd of 37 degree API oil on open flow test. Its early days, with further seismic and more delineation drilling required, but Francis reckons this could be a 50 million barrel field, which is pretty significant.

The North Varyakhskoye discovery is a tight reservoir that will require fraccing but could be a nice, if modest, 2 million barrel addition to the reserves base (offsetting a 2 million barrel reduction at the Kondrashevskoye field after field delineation defined the oil water contact). Then theres the Arbuzovskoye oilfield, which has 2P reserves of 13 million barrels and flowed 176 bpd on test. Its lined up for production start-up in 2012.

On Licence 67, where the company has a 50 per cent interest, exploration is also underway with the company making a new field discovery with the C-3 well on the Cheremshanskaya field (again an old Soviet-era well that had by-passed pay potential). PetroNefts well found oil and oil/gas in the Upper and Lower Jurassic sands a drill stem test is currently underway to learn more. The company this week spudded a well on the Ledovoye oilfield, a 1970s discovery (there are already booked 2P reserves of 14 million barrels in the Upper Jurassic net to PetroNeft) again with bypassed potential.

This is certainly a company with a solid set of assets steady and growing production and an exploration and appraisal programme that is readily moving exploration resources up the value chain. Indeed, the company sees the potential to double its reserve base just on the back of its 2011 drilling campaign. Were currently producing from 20 per cent of our reserve base and if we double our reserves then its just ten per cent, said Francis, demonstrating just how much scope there is to deliver growth from the existing portfolio, whatever the current share price might suggest.

Looks an interesting company

Time this doubled in value in line with production increases.

One of my great hopes for 2012+,news is close.

A good acessment i think?

http://wexboy.wordpress.com/2011/12/30/happy-new-year-a-bakers-dozen-for-2012/#more-221

13. Petroneft Resources (PTR:LN) : Petroneft’s a Dublin based oil and gas exploration and production company, focused on Western Siberia. Production only began this year, and has been beset with problems and disappointment, significantly impacting the share price (down about 75% now in the past year). I don’t consider this a serious problem myself, all it needs is more money, time and brains… I’d be more concerned about their cash burn rate – the real negative for the share price was the fact the company strongly hinted they’d become cashflow positive this year. This hasn’t happened due to the production problems to date, and the company’s down to about 0.9 years of cash burn left (unfortunately funded by drawing down on a debt facility). They’ve really missed their chance on another placing, which would now be terribly dilutive, so offering a farm-in/sale of some of their assets might be a potentially better solution. You have to balance this though with the fact that they have almost 100 mio boe of Proved/Probable Reserves (to be increased at year-end, plus much larger Resources) on hand, and an experienced, straight-shooting management team (led by Dennis Francis) despite the recent issues. This will also be a good stock for stake building, if appropriate, as news/events occur in 2012. I hold a 1.2% portfolio stake.

A summary of quite a few oil stocks and how they faired during 2011.

http://www.smallcapnews.co.uk/2012/01/oil-and-gas-round-up-2011/

http://www.macquarie.com/dafiles/Internet/mgl/msg/iConference/documents/Europe/ExplorersAgenda.pdf

6 weeks is up today,so hopefully this coming week we will get the result?

Licence 67 - Ledovaya No. 2a well

The 2a well was spudded on 5 December 2011. The well is targeting oil in both the Lower Cretaceous and Upper Jurassic intervals. It is expected that the well will take approximately four to six weeks to drill to the target depth.

It's at times like this that the market can get frustrating,here is a company undervalued,about to issue several lots of news and yet the SP is struggling.
Down to a stressed seller(Bluegold C.M.)dumping stock,of course this can be a great
buying opportunity(remember AFR,taken down to 13p),just a matter of timing?
aimho

I've just doubled my shareholding.....nuts this sp.....it has to be !....sp should be above 50p at the very least.....

Has to be the most disappointing oil stock around......just can't believe how this has slumped ???...and yet all the indications are of it starting to get a serious cashflow !!!.

As i said,their's a distressed seller and as such the market will take advantage.

5 million trade gone through,reported as a buy?

Tell him to cheer up...he's distressing me with his distress......I'm snapping these up on the drop...

I've increased my holding by 3 this morning.....come on PTR.....

As i thought BLUEGOLD the distressed seller, all 18,600,000 of their remaining stock for 11.6p,Yws 11.6p. Hopefully we can now ptrss on and get true value,so bring on the news.

Some strong trading signals,

24/01/12 10:06 16.95 5,771 O 16.5 17.0 Buy 1,171,788 195,275 390,740
24/01/12 10:00 16.84 100,000 O 16.5 17.0 Buy 1,166,017 195,275 390,740
24/01/12 09:44 16.84 29,691 O 16.5 17.0 Buy 1,066,017 195,275 390,740

Otkritie Brokerage House. Buy. Target 70p. Upside Potential 330.8%.

PetroNeft Resources is at the heart of both geographic and strategic sweet spots of the Russian oil sector. Its prolific assets portfolio(97mnbbls of 2P reserves and 317mnbbls of risked possible reserves and mean risked resources) in Russia’s Tomsk region in West Siberia offers visible production growth in an established hydrocarbon-bearing province with existing infrastructure. As a small-size oil producer, we believe PTR is the major beneficiary of the forthcoming MET breaks on small oil fields;and is also set to benefit from the 60/66 oil tax reform. An experienced management team, in combination with its fully-funded status, in our view make PTR one of the most attractive E&P stocks in the FSU. The recent downgrade of its 2011-2013 production targets and the ensuing 28% drop in its share price has created an attractive buying opportunity.
We initiate coverage of PTR with a BUY rating and target price of
GBp70/share.

Has this become another OTC?!

Hope not,we need a positive update,especially from the fraccing program,in the meantime just came across this.

Petroneft (PTR:LN): I own a 1.0% stake in PTR, and have recently written about it here. Petroneft’s in an enviable situation compared to most other resource stocks, with plenty of proved and probable reserves. This is the underlying basis for my valuation, but the market price illustrates how critical cashflow is with an asset based investment. Any value investor likes to pounce on a stock which trades at a large discount to asset value. This can be sometimes be a big mistake. Why?

Well, if the company involved is suffering from significant cash outflows, and has insufficient cash/debt to reach its expected cashflow positive inflection point, you’re probably going to see that share price hammered. There’s nothing the market hates worse than this kind of funding uncertainty, or the risk of actual company failure. And this is the problem – Petroneft has plenty of asset value, but is running out of cash/debt capacity. Problems with initial production have compounded this – these will be solved with time, brains and money, but the funding issue is unlikely to be solved without dilution for the shareholders.

Purely on an asset basis, I calculate Fair Value of about GBP 75p per share. If I assume a share placing large enough to fund 1 year of cash burn (302.6 mio shares @ say GBP 10.25p, a 35% discount, to bring in $49.1 mio), I come up with a diluted value of GBP 48p per share. Which is correct? Well, I’ve already pointed out the best solution (now that PTR’s missed the boat on a decent share price) – a sale/farm-out of reserves, or preferably resources. In fact, I don’t include resources in my valuation, so any resources sale (and they have 100s of million of boe) would improve my (higher) valuation due to cash received and retention of their reserves. It would also eliminate any near term funding issues, hopefully granting the room for a ramp-up in production. Therefore, I think an average of the two approaches is justified, which is a GBP 61p per share Fair Value, and a Potential Upside of 293%.


And the link for the above

http://wexboy.wordpress.com/2012/02/08/the-great-irish-share-valuation-project-iv/

And an interview with Denis Francis.

http://www.iii.co.uk/articles/21843/interview-petroneft-resources

Well you could ask these questions yourself if you were to attend davy's oil's and mining evening in dublin on feb 16th
as well as o'cathain kerr anderson of ormond, david bramhill of wessex,
plus circle oil,provedence res. kenmare, circle oil, and petroneft,
hope to see you all there

http://uk.advfn.com/news/UKREG/2012/article/51187528

http://www.investegate.co.uk/Article.aspx?id=201202170700146025X

V/ Disappointing flow results,although thet have potentalally large oil field.

The Ledovaya result is encouraging and we await the test results from the Upper Jurassic zone. We are delighted that testing at Cheremshanskoye has confirmed oil in our primary Upper Jurassic J1-3 interval and demonstrated three separate oil pools in the field. Given the large area of the structure and nature of the analogue fields nearby we feel that with further delineation Cheremshanskoye will prove to be a major oil field."

More good than bad.....undervalued...

sp slaughtered......unbelievable....

Disappointing market knockdown......producing.....and with another oil field coming on line shortly even with a small production setback, I would have expected the sp to remain around 15p....10p now....will have to stay put....my worst pick it seems for ages....

so is this a good opertunity to buy?
I would think so.

only if you think theres a profit to be made in the not to distant future.,.

I have just been tempted again...heavens....this just has to recover...most of these oil minnows never get to production...this one is and increasing little by little but everytime there is a small production setback : the sp gets slaughtered regardless of other fields with tens of millions of barrels being discovered....this is nothing of the size of the GKP's or even the Falkland oilies but it's a minnow and a producing profitable one at that...the sp should be above 50p...at least..patience is required here...and I'm not selling at a loss...

Your stuck in rf but parrisf has the choice, besides your sounding like pro now....lol gl

....oh dear...still I reckon that a short term profit looks feasible.....read throught the rns's and to me medium term looks pretty good....I will not be tempted again...will hold...it's a ridiculous drop...unfair in my view...

Just took a hit and sold 21k,certainly dented my GKP profits maybe use as a buffer for CGT? The 21k is shown as a buy?

You might have hit the low NC.....

At this price (10p) looks cheap. Company Mkt Cap £41 million, and 2200 bopd produced.and there is the potential of more finds. Welcome any comments.

have bought around 9p. looks like reasonable size buying as well.

dipped my toe in at .087.,. oh dear.,.

Looks like things are ok Balerboy.

Looks like good news from the latest RNS. Anyone got more news?

According to the sources close to the company the undisclosed Asian oil and gas producer submitted the non-binding indicative offer to PetroNeft Resources plc (PTR:LI) regarding its willingness to acquire 50% equity shareholding in licence 61 (via a number of PetroNeft subsidiaries, Worldace Investments Ltd. and Stimul-T OOO). Licence 61 issued by the Government of Russia allows PetroNeft to explore the sub-soil area in Tomsk region of Russia. The Asian O&G company offered the full repayment of USD 14 million Macquarie loan (payable in 2014) and USD 30 million development Capex for Licence 61.

The announcement is fully in line with Dennis Francis (CEO of PetroNeft Resources plc) recent comments: "We have made good progress on the re-financing and farm-out fronts in the last month. We appreciate shareholders continued patience and support while these negotiations are completed. The successful completion of either of these objectives will enable us to recommence our drilling programme and return to building production."

Research analysts see the news as highly positive for PetroNeft as licence 61 farm-out is crucial not only for further development but also for the financial security of PetroNeft. The recent share price dynamics supports the positive shifts on PetroNeft's re-financing and licence 61 farm-out.

http://www.vedomosti.ru/companies/news/14353471/nenazvannaya-aziatskaya-neftegazovaya-kompaniya-zainteresovalas-petroneftyu..

Today is bouncing after the recent retracement, there was good buying last friday but unchanged, that gave a good charting future and today looks like the MMs are aware and marking the stock up, most likley short of stock as buying online was not posible

Further rise on both sides to 3.875p

Keep rising as it seems there is plenty of demand from across the Irish waters

ISE:P8ET
is quoted there aswell with 3 times more volume than usual
was 0.043p and is now 0.047p +9%

The narrow spread at closing has attacted new buyers this morning and the 3.90p was taken out eventualy

From Barchart ............ PTR 3.875+0.350 (+9.93%) 8:56P EDT (LSE)

On the way up with 2 ticks on the bid side, the recent small retracement did not last

5 large trades a bit earlier has encourage buyers since

Is there no other reason for the increase in share price?

Directors being ousted, are they worth keeping .....anyone. Got to vote by 28th.,.

Does anyone know the result of the EGM's yet ?

Was the 11,500,000 share transaction a buy or sell ??? at 4.14pm last night
It will be interesting to see how this moves from here now the Farm Out has been agreed and concluded