Petroneft Spuds Korchegskaya No. 1 Well in Russia

PetroNeft Resources plc, owner and operator of Licence 61, Tomsk Oblast, Russian Federation, is pleased to provide this update on the progress on its 2007/08 three well drilling program and pilot production.

Drilling has commenced on the No. 1 well on the Korchegskaya Prospect. The well was spudded on schedule on Feb. 29, 2008. The principal target horizons for this well are Upper Jurassic sandstone reservoirs, at a depth of 2,450 meters. The total planned depth for the well is approximately 2,800 meters. It is anticipated the well will be drilled, logged and tested within approximately 65 days of commencement. Ryder Scott estimates that this prospect has potential for 36 million barrels of possible reserves (P3). If successful, Korchegskaya will be incorporated in the overall phased development for Licence 61.

The rig has been moved to site for the Lineynoye No. 8 Delineation Well, and the rig is being assembled. It is scheduled to commence drilling in May 2008.

West Korchegskaya No. 1 Exploration Well – The rig is being moved to site and it is anticipated that drilling will commence in June 2008.

The long term test/pilot production from the Lineynoye No. 7 well commenced on 3 March and the stabilised production rate will be advised over the coming weeks. The Lineynoye No. 6 well remains in continuous production at a stabilised rate of 245 bopd. The production tests will continue as long as winter roads are in place to truck the oil. The production data will be used to design the optimum fracture geometry for future stimulation and to enhance long-term reserve recovery from the fields.