--Revised Competent Persons' Report by Ryder Scott in September 2006 established Proved and Probable (P1 + P2) reserves at 33.5 million bbls in two proven oil fields, Lineynoye and Tungolskoye. Possible (P3) reserves are estimated by Ryder Scott at 290 million bbls in the two fields and 20 prospects. --Commencement of 2006/2007 winter drilling and seismic work program: a) Drilling has commenced on the first well of the 2006/2007 three well drilling program designed to confirm reservoir parameters, upgrade reserves and significantly expand the company's reserve base. Results from the first well are expected in May. b) Acquisition of 540 line kms of new high resolution 2D seismic data was completed on March 15, 2007 which fulfuls the License obligation to acquire 1,000 kms of seismic data. --Preliminary Development Feasibility Study, inlcuding planned pipeline development and funding requirements on the Lineynoye and Tungolskoye Oil Fields, was completed in February 2007. --Development of the Company's Human Resources continues. The Russian management has been strengthened by a number of new appointments in the legal, technical and environmental disciplines. Plans are in place to appoint a Chief Financial Officer for the Company in the near futrue.
--Private placement raising US$8 million completed in February 2006. --Admission to AIM and IEX Markets completed on September 27, 2006, raising a further US$15.5 million. --Cash balance of US$12.9 million as at 31 December 2006. --Loss of US$0.99 million
Dennis Francis, CEO of PetroNeft, commented:
"These results draw a line under our successful start up period and have provided the launchpad for operational and financial progress. Our oversubscribed fundraisings have left us fully funded for our current operational program.
"The seismic and drilling programs are designed to develop our excellent portfolio of assets, both in terms of reserves base, reserves upgrades and identifying new drilling prospects. We are currently back on schedule in spite of weather delays early this winter and look forward to results later this year.
"Our preliminary development feasibility study on the Lineynoye and Tungolskoye Oil Fields will enable us to meet our primary goals - targeting the earliest possible production date, providing positive cashflow and creating value for our shareholders."
PetroNeft Resources plc is an oil exploration and production company with assets in Tomsk Oblast, Western Siberia, Russia.
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