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

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.....