Petroneft Resources Plc - Now Looking an attractive Investment ?

Sunday, Jan 27 2013 by
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Petroneft have had mixed fortunes over the last few years but there are signs that the company are back on track and are now trading at attractive multiples to new investors.2012 proved to be a good year for the company in terms of putting the groundwork in on its key assets in Siberia and are now steadily stepping out production, which was stated in the last company update on the 18th december 2012 as being 2800 Bopd * .

Petronefts key assets are located in the Russian state of Siberia and comprise of Licence 61 and Licence 67 both of which have large booked reserves,and also hefty contingent resources which the company are starting to exploit.Internal company estimates suggest that each of their operated fields could contain many many multiples of the current booked reserves data. Petroneft also have an advantage in terms as operator and enjoy a relative low cost per well development platform.

The key factor that makes Petroneft an attractive investment right now is the company,s ability to self fund its own development  plans whilst also paying down its modest debt position.Alongside an anticipated major reserves upgrade once the next few wells have been put on production.

  

 

The company are currently drilling / testing Well No 112 at its Arbuzovskoye field, following on from a solid run of successes on the acreage where production output has been steadily growing. Results are now due from Well 112 which is located on the highest flow eastern side of field alongside news of the three producing wells taken offline at the end of last year for remedial work on pumps, and are due back online before the end of january.

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Well 112 is the fifth development well on the field with a further five wells planned and funded for through 2013,and the company are targetting a steady daily ouput of 5000 barrels or more during the course of the next 12 - 16 months.

 

 

RNS - 18 December 2012

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented:

"We are pleased with the initial flow rate on well 111 and the fact that there is no water production associated with the well. We continue to expand our understanding of the field and are now drilling well 112 on the eastern side of the field where we have seen the highest flow rates to date. The operational challenges and variation in results are as expected. We look forward to completing further wells in Arbuzovskoye over the coming months as we continue to focus on materially increasing our production profile and cash flows."


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PetroNeft Resources Plc is an oil and gas exploration and production company, focused on Russia. The Company has interests in 4,991 square kilometers oil and gas license (License 61) in the Tomsk Oblast in Russia and a 50% operating interest in 2,447 square kilometers oil and gas license (License 67)in Tomsk Oblast. The Company’s License 61 contains seven oil fields: Lineynoye, Tungolskoye, West Lineynoye, Kondrashevskoye, Arbuzovskoye, Sibkrayevskoye and North Varyakhskaya and over 25 prospects. The Company's License 67 contains the Cheremshanskoye and Ledovoye oil fields and numerous prospects and leads. During the year ended December 31, 2011, work program in License 61consisted of expanding the central processing facility capacity to 14,800 barrels per day, construction of two pads, drilling of 14 development wells and three exploration/delineation wells. In October 2011, an oil field with three separate oil pools was discovered at Cheremshanskoye. more »

Share Price (AIM)
5.75p
Change
0.0  0.0%
P/E (fwd)
n/a
Yield (fwd)
n/a
Mkt Cap (£m)
41.0



  Is Petroneft Resources fundamentally strong or weak? Find out More »


2 Posts on this Thread show/hide all

Marc Benjamin 1st Feb '13 1 of 2

Further to the original article ,i left out the link to the company,s Licence 61 where operations are currently focused and provide the link below.

 

http://petroneft.com/operations/licence-61/

 

 

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alisob 29th Sep '13 2 of 2
1

According to the sources close to the company the undisclosed Asian oil and gas producer submitted the non-binding indicative offer to PetroNeft Resources plc (PTR:LI) regarding its willingness to acquire 50% equity shareholding in licence 61 (via a number of PetroNeft subsidiaries, Worldace Investments Ltd. and Stimul-T OOO). Licence 61 issued by the Government of Russia allows PetroNeft to explore the sub-soil area in Tomsk region of Russia. The Asian O&G company offered the full repayment of USD 14 million Macquarie loan (payable in 2014) and USD 30 million development Capex for Licence 61.

The announcement is fully in line with Dennis Francis (CEO of PetroNeft Resources plc) recent comments: "We have made good progress on the re-financing and farm-out fronts in the last month. We appreciate shareholders continued patience and support while these negotiations are completed. The successful completion of either of these objectives will enable us to recommence our drilling programme and return to building production."

Research analysts see the news as highly positive for PetroNeft as licence 61 farm-out is crucial not only for further development but also for the financial security of PetroNeft. The recent share price dynamics supports the positive shifts on PetroNeft's re-financing and licence 61 farm-out.

http://www.vedomosti.ru/companies/news/14353471/nenazvannaya-aziatskaya-neftegazovaya-kompaniya-zainteresovalas-petroneftyu..

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