PTR.L Regulatory News (PTR)

14 Jan 2008 07:01

Petroneft Resources PLC14 January 2008 14 January 2008 PetroNeft Resources plc ("PetroNeft") Acquisition of Refinery Site PetroNeft is pleased to announce that it has acquired a site for a Mini-Refineryat Pervomayka in the Kolpashevo District of the Tomsk Oblast, south of theCompany's current operational area in Licence 61. The 7.5 hectare site is located approximately 200 km northwest of the city ofTomsk at the Transneft pipeline Pervomayka pumping station in the KolpashevoDistrict. The Regional Administration has given permission for the use of theland for a Mini-Oil-Refinery. Some site clearance and preliminary ground workswere carried out by the previous owner and the off-take flange for the Transneftpipeline connection is already in place. The Company's medium term strategy is to participate in both the upstream anddownstream segments of the oil and gas business in Russia. Vertical integrationwill ensure the Company of a reliable outlet for its domestic oil sales as wellas allow it to participate in certain tax benefits offered to the refiningsector. The end result will be an improved margin on each barrel of productionrun through the facility. Acquisition of the Pervomayka site gives the Company avery viable option, but not an obligation, to enter into the downstream businessat the appropriate time. The Company's current focus remains the development of the reserves in Licence61, while seeking new acquisitions and investment opportunities to broaden theCompany's portfolio and add value to its existing reserves. Reserves Report The reserves report for Licence 61, as at 31 December 2007, is being finalisedby Ryder Scott and is expected to be published within the next month. Dennis Francis, Chief Executive Officer of PetroNeft commented: "This acquisition gives us the option of improving our margins and developingalternate income streams in the future; thereby, allowing PetroNeft to generatemaximum value from its business in Licence 61 and provide important productsupplies in the Tomsk Region." For further information, contact: Dennis Francis, CEO, PetroNeft Resources plc (Houston)+1 713 988 2500 Paul Dowling, CFO, PetroNeft Resources plc (Dublin)+353 144 33720 Desmond Burke, Director Investor Relations, PetroNeft Resources plc (Ireland)+353 52 53226 John Frain/Brian Garrahy, Davy+353 1 679 6363Damien Mauvais, Natixis Bleichroeder+44 207 220 5184 Nick Elwes/Paddy Blewer/Simon Whitehead, College Hill (UK)+44 207 457 2020 Forward Looking Statements This announcement contains forward-looking statements. These statements relateto the Company's future prospects, developments and business strategies.Forward-looking statements are identified by their use of terms and phrases suchas "believe", "could", "envisage", "potential" "estimate", "expect", "may", "will" or the negative of those, variations or comparable expressions, includingreferences to assumptions. The forward-looking statements in this announcement are based on currentexpectations and are subject to risks and uncertainties that could cause actualresults to differ materially from those expressed or implied by thosestatements. These forward-looking statements speak only as at the date of thisannouncement. This information is provided by RNS The company news service from the London Stock Exchange