PTR.L Regulatory News (PTR)

5 Mar 2008 07:00

Petroneft Resources PLC05 March 2008 PetroNeft Resources plc Operational Update PetroNeft Resources plc ("PetroNeft" or "the Company"), owner and operator ofLicence 61, Tomsk Oblast, Russian Federation is pleased to provide this updateon the progress on its 2007/08 three well drilling program and pilot production. Highlights; • Drilling has commenced on the Korchegskaya No. 1 exploration well • Preparations for drilling the Lineynoye No. 8 delineation well and the West Korchegskaya No. 1 exploration well are underway • Lineynoye No. 7 well has now commenced pilot production • Lineynoye No. 6 pilot production remains steady at 245 bopd Update on Drilling Activities Korchegskaya No.1 Exploration Well - Drilling has commenced on the No. 1 well onthe Korchegskaya Prospect. The well was spudded on schedule on February 29,2008. The principal target horizons for this well are Upper Jurassic sandstonereservoirs, at a depth of 2,450 metres (subsea). The total planned depth for thewell is approximately 2,800 metres. It is anticipated the well will be drilled,logged and tested within approximately 65 days of commencement. Ryder Scottestimates that this prospect has potential for 36 million bbls of possiblereserves (P3). If successful, Korchegskaya will be incorporated in the overallphased development for Licence 61. Lineynoye No. 8 Delineation Well - The rig has been moved to site and is beingassembled. It is scheduled to commence drilling in May 2008. West Korchegskaya No. 1 Exploration Well - The rig is being moved to site and itis anticipated that drilling will commence in June 2008. Update on Production Testing The long term test/pilot production from the Lineynoye No. 7 well commenced on 3March and the stabilised production rate will be advised over the coming weeks.The Lineynoye No. 6 well remains in continuous production at a stabilised rateof 245 bopd. The production tests will continue as long as winter roads are inplace to truck the oil. The production data will be used to design the optimumfracture geometry for future stimulation and to enhance long-term reserverecovery from the fields. Dennis Francis, Chief Executive Officer of PetroNeft Resources plc commented: "We are delighted to have our three well drilling program up and running onschedule. We look forward to updating the market on the results of these wells." For further information, contact: Dennis Francis, CEO, PetroNeft Resources plc,+1 713 988 2500 Paul Dowling, CFO, PetroNeft Resources plc+353 1 4433720 Desmond Burke, Director Investor Relations, PetroNeft Resources plc+353 52 53226 John Frain/Brian Garrahy, Davy+353 1 679 6363 Damien Mauvais, Natixis Bleichroeder+44 207 457 2020 Nick Elwes/Paddy Blewer, College Hill+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