PTR.L Regulatory News (PTR)

19 Jun 2007 07:01

Petroneft Resources PLC19 June 2007 19 June 2007 PetroNeft Resources plc Operational Update PetroNeft Resources plc ('PetroNeft' or 'the Company'), 100% owner of Stimul-T,which is the sole owner and operator of Licence 61, Tomsk Oblast, RussianFederation, is pleased to provide this update on the progress on its 2006/07three well drilling programme. • Positive initial drilling results from Tungolskoye No. 4 delineation well. • High impact exploration well Lineynoye No. 7 has been spudded. Tungolskoye No. 4 Well The Tungolskoye Oil Field is located in Licence 61 in the Tomsk Region of theprolific Western Siberian Oil and Gas Basin. Discovered in 1973, Ryder Scottpetroleum consultants estimate 2P reserves of 17.92 million barrels of oil forthe field. • The Tungolskoye No. 4 well was spudded on 16 May 2007 and reachedTotal Depth of -2,900 metres subsea on 15 June. • Oil was confirmed in the primary reservoir interval comprising over 15metres of continuous net pay in the Upper Jurassic Vasugan Formation. Thisrepresents the single best reservoir interval drilled to date on Licence 61. Theentire reservoir interval was successfully cored and these cores are currentlybeing analysed in detail. • The Base Bazhenov Formation was penetrated at -2,505 metres subseawhich is in good agreement with the seismic interpretation prior to drilling thewell. The data indicates that the oil water contact (owc) is consistent withthe current field wide owc at -2,526 metres subsea. Geophysical logging and initial petrophysical analysis has now been completedand preparations are now underway to carry out flow tests on the well todetermine its productive capacity. Results will be published as soon as theyare available. Lineynoye and Tungolskoye Drilling Programme The current appraisal drilling programme which comprises two wells, the recentlycompleted Lineynoye No. 6 well and Tungolskoye No. 4, is designed to confirmprior reservoir data in the Lineynoye and Tungolskoye fields and to providefurther input into a Final Development Feasibility Study. The programme alsoincludes a high impact exploration well, Lineynoye No. 7, on the West LineynoyeProspect. These results will also be incorporated into the Final DevelopmentFeasibility Study expected to be completed in late 2007. West Lineynoye Prospect - Lineynoye No. 7 Well The Lineynoye No. 7 Well was spudded on 18 June 2007. West Lineynoye, a highimpact prospect, is estimated by Ryder Scott to contain Possible Reserves ofapproximately 67 million barrels of oil. The principal target horizons for thiswell are Upper Jurassic sandstone reservoirs starting at a depth of about -2,375metres subsea. The total planned depth for the well is approximately -2,750metres and it is anticipated that the well will be drilled, logged and testedwithin approximately 70 days of commencement. Dennis Francis, Chief Executive Officer of PetroNeft Resources plc commented: 'We are delighted with the initial results from the Tungolskoye No. 4 well.This result confirms the presence of a significant and continuous reservoirinterval and supports the current structural and hydrodynamic interpretation ofthe field. The 15.2 metres of continuous net pay represents the single best reservoirinterval drilled to date in the Licence area and is an important input into ourongoing development and production feasibility planning work. We look forward to positive flow test results from Tungolskoye No. 4 and thedrilling of Lineynoye No. 7 which could bring significant new reserves into ourportfolio.' For further information, contact: Dennis Francis, CEO, PetroNeft Resources plc +1 713 988 2500 Desmond Burke, Director Investor Relations, PetroNeft Resources plc +353 52 53226 John Frain/Brian Garrahy, Davy +353 1 679 6363 Nick Elwes/Paddy Blewer, College Hill +44 207 457 2020 Damien Mauvais, Natixis +44 207 220 5184 The information contained in this announcement has been reviewed and verified byMr. Dennis Francis, Director and Chief Executive Officer of PetroNeft, for thepurposes of the Guidance Note for Mining, Oil and Gas Companies issued by theLondon Stock Exchange in March 2006. Mr. Francis holds a B.S. Degree inGeophysical Engineering and a M.S. Degree in Geology from the Colorado School ofMines. He has also graduated from the Harvard University Program for ManagementDevelopment. He is a member of the American Association of Petroleum Geologistsand the Society of Exploration Geophysicists. He has over 34 years experiencein oil and gas exploration and development. Glossary of Key Technical Terms Bazhenov Formation - Organic rich shale of Upper Jurassic age that is both amajor source rock for oil and cap rock in the West Siberian Oil and Gas Basin.The base of the formation is a continuous and reliable seismic marker throughoutthe basin. J11 and J12 Sandstones - Stratigraphic units in the top part of the VasyuganFormation of Upper Jurassic age in the West Siberian Basin. The VasuganFormation underlies the Bazhenov Formation and the J11 and J12 sandstones arenormally of reservoir quality in the region with sufficient porosity andpermeability to store and transmit hydrocarbons. Oil Water Contact - A bounding surface in a reservoir above which predominatelyoil occurs and below which predominately water occurs. Subsea or Relative Depth - represents the vertical depth of the well bore belowa reference datum taken as mean sea level. In mathematical terms this depth isequal to the True Vertical Depth (TVD) of the wellbore minus the elevation ofthe drill floor or measurement reference point. 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. End This information is provided by RNS The company news service from the London Stock Exchange