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!!