PetroNeft Resources PLC - Part-owner and operator of two licences in the west Siberian oil basin - Says its pretax loss narrowed to USD4.5 million in 2020, from USD6.0 million the year before. Says this is despite a 33% drop in realized oil price per barrel last year. Oil prices dropped so low in April 2020 that the company paused production. Across 2020, gross production averaged 1,562 barrels of oil per day, down 3.2% year on year from 1,614 barrels each day in 2019. Says it cut operating costs per barrel by 10% to USD12.4 in 2020 from USD13.8 the previous year.
Says strong performance and rising oil prices have improved its finances in 2021. PetroNeft's gross production is currently at 2,289 barrels of oil per day. As announced in April, stronger financial performance allowed PetroNeft to complete an all season road and return to drilling at the Ledovoye L-2a well without using its USD1 million facility with Alexandrovskoye Refinery. The company also upped its equity holding in Licence 67 to 90% in April, from 50% funded with an equity issue and a USD1.7 million loan from the seller, Sarum Energy Ltd.
Current stock price: 3.14 pence, down 6.4% on Tuesday afternoon
Year-to-date change: up sharply from 0.65p
By Scarlett Butler; scarlettbutler@alliancenews.com
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