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PetroNeft Resources plc Preliminary Results for the Year Ended 31 December 2010

PetroNeft Resources plc owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to report its preliminary results for the year ended 31 December 2010.

Operational Highlights
• Year-round production commenced on schedule in Q3 2010
• Group 2P reserves increase 37% to 96.9 mmbbls
• Production reached 3,100 bopd from 9 wells
• Drilling of 17 additional production wells planned for 2011 underway
• Five well exploration programme targeting 120 million barrels of reserves underway

Financial Highlights
• Commencement of oil sales in late Q3 2010
• Capital expenditure of US$42 million in 2010; a fully-funded US$53 million spend planned for 2011
• Successful oversubscribed US$43 million equity placing in October 2010
• Macquarie US$30 million Loan facility signed in May 2010, improved terms agreed in April 2011

Dennis Francis, CEO of PetroNeft commented:
“2010 was a transformational year which saw PetroNeft evolve from an exploration company to one with both exploration and production. Our proved and probable oil reserves grew by 37% with the addition of two new oil fields to our portfolio.

“2011 is set to be PetroNeft’s busiest year to date with production continuing to grow on the back of 17 new production wells and 120 million barrels of reserve growth targeted by a major five well exploration programme both of which are already underway. We look forward to updating shareholders on progress on both fronts throughout the year. ”

Source www.petroneft.com

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