(Alliance News) - PetroNeft Resources PLC shares rose on Tuesday, following a completed reserves and resource audit for two licences, giving them both a more than doubled valuation.
Shares in the Tomsk Oblast-focused oil & gas firm were 19% higher at 3.56 pence on Tuesday morning in London.
Following the audit by consulting firm Miller & Lents, licences 67 and 61 now collectively have a proved, probable and possible net attributable reserve of 107.15 million barrels, up 2.8% from 104.21 million barrels, the figure given by the legacy audit from Ryder Scott.
Meanwhile, the proved & probable net present value at a 10% discount rate came up to USD522.2 million, more than doubled from USD255.7 million in the audit given by Ryder Scott.
The higher NPV was attributed to an improvement in the long term oil pricing environment in Russia, as well as the recent acquisition of an additional 40% interest in licence 67.
"We feel the audit results fully supports our on-going strategy, with the Cheremshanskoye field on License 67 providing the most exciting near-term upside for our continued growth, reflected in the strong reserves numbers, which are all new and not reported at all in the last reserves audit. On License 61, it is satisfying to see the exciting upside and running room potential of our northern hub, particularly at Emtorskaya, beginning to show through numerically. An extensive inventory of reserves remains at our other License 61 fields," said Chief Executive Officer David Sturt.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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