REG - Petroneft Resources - 2021 Final Results

Petroneft ResourcesAnnouncement

29/09/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220929:nRSc0834Ba&default-theme=true

RNS Number : 0834B  Petroneft Resources PLC  29 September 2022

PetroNeft Resources plc

29(th) Sept 2022

 

PetroNeft Resources plc ('PetroNeft' or 'the Company')

 

2021 Final Results

 

PetroNeft (AIM: PTR) an oil & gas exploration and production company,
operating in the Tomsk Oblast, Russian Federation, 90% owner and operator of
Licence 67 and 50% owner and operator of Licence 61, is pleased to report its
final results for the year ended 31(st) December 2021.

In addition, PetroNeft announces that the Company's Annual Report and Accounts
for 2021 are now available online at the Company's website www.petroneft.com
(http://www.petroneft.com/) .

 

Highlights for 2021

 

Financial

·    Gross profit improved to US$1.4M (US$0.24M 2020).

 

·    Convertible debt redeemed through share issuance US$3.55M

 

·    Raised US$2.93M through existing Shareholders, Directors, and
Management.

 

 

Operational

·    Production increased by 21.2% with increases at both Licences 61 and
67.

 

·    Licence 67 brought into year-round production from C-4 well at
Cheremshanskoye field.

 

·    Successful two well stimulation program (Sibkrayevskoye and Lineynoye
fields) with investment being paid out by year end.

 

·    First sales achieved from mini oil processing unit located at Licence
61, generating third party revenue of US$0.19M.

 

 

Environmental Sustainability and Governance (ESG)

·    Company maintained its safety record with zero lost time incidents in
2021 (2020: zero)

 

·    Created ESG Committee reporting directly to the Board and supported
by new dedicated Sustainability Manager in Tomsk.

 

·    Refreshed and strengthened the Board with Alastair McBain taking over
as Non- Executive Chairman of the Board and Eskil Jersing joining the Board as
Independent Non-Executive Director.

 

Outlook

·    Independent reserves report (Miller and Lents) NPV10 valuation -
US$522.21M (2021) - net attributable to PetroNeft based on the net 2P (Proved
and Probable) for both Licenses 61 and 67.

 

·    Development drilling on Cheremshanskoye field (Licence 67) to
commence soon, with an initial five well program.

 

·    Scale of Emtorskaya prospect recognized by Miller and Lents report,
Pmean de-risked resource potential 96 Mbbls (gross) with estimated geological
chance of success 49.8% and P10 upside potential de-risked resource of 235.3
Mbbls (gross).

 

·    As reported by the Company on 29(th) August, the suspension of
acceptance of our oil by Nord Imperial LLC from Licence 61 remains an
uncertainty; the Company will focus attention on working to find a
commercially viable solution.

 

For further information, contact:

 David Sturt, CEO, PetroNeft Resources plc             +44 7903 869 608
 Brian Garrahy/Ciara O'Mongain, Davy (NOMAD and Joint  +353 1 679 6363
 Broker)
 Paul O'Kane, Murray Consultants                       +353 1 498 0300

 

The information contained in this announcement has been reviewed and verified
by Mr. David Sturt, Chief Executive Officer and Executive Director of
PetroNeft, for the purposes of the Guidance Note for Mining and Oil & Gas
Companies issued by the London Stock Exchange in June 2009. Mr. Sturt holds a
B.Sc. Degree in Earth Sciences from Kingston University and an MSc. in
Exploration Geophysics from The University of Leeds. He is a member of the
Petroleum Exploration Society Great Britain and has over 35 years' experience
in oil and gas exploration and development.

 

 

Glossary

 M      Million
 ESG    Environment, Social and Governance
 NPV10  Net Present Value discounting at 10%
 2P     Proved + Probable Reserves, those additional Reserves which analysis of
        geoscience and engineering data indicate are less likely to be recovered than
        Proved Reserves but more certain to be recovered than Possible Reserves. It is
        equally likely that actual remaining quantities recovered will be greater than
        or less than the sum of the estimated Proved plus Probable Reserves
 Mbbls  Millions of barrels
 P10    A probability methodology used to describe the size of the Reserves in a Field
        or resources in a prospect with P10 representing the 10% Chance of Success

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACSPPUMGBUPPPPR