PetroNeft Final Results 2016

PetroNeft  owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to report its final results for the year ended 31 December 2016. In addition, PetroNeft announces that the Company’s Annual Report and Accounts for 2016 and Notice of the 2017 AGM will be mailed to shareholders later today and will be available online at the Company’s website
  • Significant success in horizontal drilling at South Arbuzovskoye although result of the 10km step-out S-374 well on Sibkrayevskoye was disappointing
  • Gross production from Licence 61 increased 35% compared to 2015:
    • o   Gross production 990,931 barrels of oil
    • o   Average gross production of 2,707 bopd (2015: 2,021 bopd)
    • o   Net to PetroNeft 1,353 bopd (2015: 1,010 bopd)
  • 65.0 mmbbls total proved and probable (2P) reserves net to PetroNeft
  • Drilling at Sibkrayevskoye No. 375 due to commence in July 2017 – further delineation of major discovery
  • Active work programme planned at Licence 61 in 2017 and 2018
  • Business Development activity ongoing to identify new opportunities
Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented:
“2016 was a busy and challenging year for PetroNeft, during which the Company carried out an extensive drilling programme at Licence 61, raising production and gaining further understanding of our development opportunities. 
The year ahead continues to present challenges but also some grounds for optimism.  We have great support in our much valued partnership with Oil India.  Together we see opportunities to strengthen and grow our Company through development and possibly acquisition.  In the near term, we look forward to the S-375 well, which is due to commence in the coming weeks and is being drilled about 2km from existing wells, which could add material proved (P1) reserves and determine our 2018 Sibkrayevskoye development plans.”