PTR.L Share News (PTR)

(Alliance News) - PetroNeft Resources PLC on Friday said it has appointed a manufacturer to construct an oil processing facility at its Licence 61 asset in Tomsk, Russia.

Construction at the facility, which will be conducted by a Russian company which has built similar units in the region, will be completed this year, PetroNeft said.

The company said the site will reduce operating costs by at least USD1 per barrel, due to it "substantially reducing third party fuel purchases".

The Sibkrayevskoye oil field in Licence 61 will be placed in year-round production, PetroNeft added. Sibkrayevskoye usually produces between 200 and 250 barrels of oil per day during the three months of the winter season.

PetroNeft said: "As well as the additional production, having the field in year round production will provide crucial longer term reservoir performance data which will de-risk further development of the field."

In Licence 67, PetroNeft has begun a programme to connect the C-3 well and the C-4 well, which will be both placed into production this year.

At board level, Pavel Tetyakov, will join the company as an executive director

"He brings with him considerable experience having worked previously with PetroKazakhstan Inc and involved in the building of Exillon Energy PLC in addition to top management positions in a number of private and public oil companies with operations in Russia," PetroNeft said

Maxim Korobov, a non-executive director, has resigned from the company's board after a four-year stint. Daria Shaftelskaya joins as a non-executive.

The company added: "She joins the board with immediate effect. She brings her strong finance background and in addition, being from Tomsk, good regional knowledge."

PetroNeft shares were 0.2% lower at 1.22 pence each in London on Friday.

By Eric Cunha; ericcunha@alliancenews.com

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