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

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.