Petroneft Says Maintenance Improves Production; Sees Financing Progress

LONDON (Alliance News) - Petroneft Resources PLC Wednesday said it is positive on results of a maintenance programme at its Arbuzovskoye well in Russia.

The oil-and-gas exploration-and-development company said the maintenance programme has brought improved production to its Arbuzovskoye site, and the company expects the improvement to expand across its producing wells in the coming months.

The company's average production rate remains steady at 2.500 barrels of oil per day.

Petroneft Resources said it is encouraged by progress regarding its refinancing of bank debt so that it can re-commence additional wells at the Arbuzkoye site and improve some of its other wells. The company is currently making payments of USD650,000 per month to Macquarie Bank from its operational cash flow to complete the refinancing.

"We appreciate shareholders continued patience and support while these negotiations are completed. The successful completion of either of these objectives will enable us to recommence our drilling programme and return to building production," Chief Executive Dennis Francis said in a statement.

Petroneft shares were up 0.20 pence, or 6.6% to 3.25p Wednesday. 3.25 +0.20 (6.56%

By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1

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