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PetroNeft Resources sees increased stability through Q3

PetroNeft Resources plc (LON:PTR) an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, has reported its final results for the six months ended 30 June 2020.

Highlights

·    Gross production from Licence 61 in H1 2020 1,566 bopd (783 bopd net to PetroNeft)

·    Completed construction of a 26 km pipeline connecting Sibkrayevskoye field to the Central Processing Unit significantly ahead of schedule and within budget, allowing year-round production from Sibkrayevskoye which commenced from the end of March 2020

·    Optimisation of the water flood program at the Lineynoye field resulting in a 20% year on year increase in production (July to July).

·    Successfully completed extended well test of the C-4 well producing and selling 1,200 bbls of oil at competitive rates.

·    Restarted construction of mini refinery at License 61, which is now under test production.

·    Daria Shaftelskaya and Pavel Tetyakov joined the board, while Maxim Korobov resigned after almost 4 years as a director.

David Golder, Chairman of PetroNeft Resources plc, commented 

‘The first half of 2020 presented many challenges to the company through the dual effects of the Covid pandemic and turmoil in the world’s energy markets. We have however been seeing increased stability through the third quarter and are optimistic that this will continue through the end of 2020 and into 2021.

With the success of the C-4 extended well test combined with stabilising production at Licence 61, we believe the company is well positioned to benefit from a future improvement in the market. We are particularly looking forward to an active winter work program at the end of this year and in to 2021.”