Irish exploration company PetroNeft Resources looking to sell-up

Irish exploration company PetroNeft Resources looking to sell-up

The new chief executive of Irish exploration company PetroNeft Resources has said the company will likely be sold within the next two-to-three years.

The goal of the company, in the intervening period, will be to significantly enhance the value of its existing licences.

PetroNeft, whose focus is two licences in Siberia, recently said it was looking at "all options" - including the sale of its assets and the possible acquisition of new licences - in a bid to return value to its shareholders.

PetroNeft owns a 50% stake in each of the licences in Tomsk and approximately 50% of its shares are owned by retail investors.

Industry veteran David Sturt - who was recently named PetroNeft's chief executive - said interest has been shown in the two Tomsk-based licences.

Mr Sturt's chief focus will be to build and realise shareholder value. To that end, PetroNeft is looking to further boost production at its two licences - Licence 61 and Licence 67 - in a cost-effective manner through improved fracking techniques, water flooding optimisation and improved infrastructure.

Licence 61 is already producing, Mr Sturt recently indicated that following highly positive results from a recent well, Licence 67 could enter production. He also indicated that there may be potential for further development on this well in the short term.

A near-term sale has not been ruled out, but Mr Sturt said an asset sale in less than three years is highly likely.

Asset acquisition activity in the Russian exploration market has increased in the past 12 months.


More in this Section

Asos and Next drop Boohoo after Leicester factory allegationsAsos and Next drop Boohoo after Leicester factory allegations

Clarks joins the growing list of retail casualties on Cork's Patrick's StreetClarks joins the growing list of retail casualties on Cork's Patrick's Street

Sportswear retailer JD Sports scraps shareholder dividend pay out due to Covid uncertaintySportswear retailer JD Sports scraps shareholder dividend pay out due to Covid uncertainty

CIF urges roll out of factory-built homes to help solve housing crisis in IrelandCIF urges roll out of factory-built homes to help solve housing crisis in Ireland


Lifestyle

Dónal Clancy is a musician from An Rinn in Co Waterford. He will perform the music of his late father, Liam Clancy, in a special online solo performance on Thursday at 7pm as part of this year's Clonmel Junction Festival.Question of Taste: Dónal Clancy

BETWEEN 1973 and early 1975, John Lennon split with Yoko Ono, took up with his assistant May Pang and embarked on a period of intense creativity and outrageous behaviour. Lennon later described this time as his “lost weekend”.Rufus Wainwright has returned a new man

Stan O’Sullivan tells Ellie O’Byrne about the genre-busting album from 2007 that probably doesn’t get the recognition it deservesB-Side the Leeside - Cork’s Greatest Records: Louder & Clearer from Stanley Super 800

In recent times one of the most recurring and troubling conversations I have with teenagers, in therapy, is around their use of marijuana. Often parents seek out therapy because they have noticed a dramatic shift in their child’s behaviour.Richard Hogan: Beware of making light of your teen's marijuana use

More From The Irish Examiner