PetroNeft Resources, the Irish oil and gas exploration company, is looking to significantly boost the value of its chief assets this year, ahead of a probable sale of the company at some point.
The company, which is solely focused on two licences in the Siberian region of Tomsk, has effectively been up for sale for more than a year as it looks to return some value to shareholders.
However, after successfully raising $2.1m (€1.9m) via a share placing which introduced new investors, the company is open to the idea of a longer sales process as it now has the funds to attempt to boost the value of its assets through low-cost drilling campaigns.
The money was also raised at a significant premium to PetroNeft’s share price.
PetroNeft holds a 50% stake in the Licence 61 and Licence 67 assets in Tomsk.
Upcoming work will mainly target transforming Licence 67 from a development asset into a production asset.
The company will target re-entry to two existing wells previously drilled in 2011 and 2018 as well as two potential drills in a neighbouring field.
PetroNeft is still likely to be sold, but chief executive David Sturt said the last thing management wants to do is sell the business “on the cheap”.
He said that there is a great opportunity to increase shareholder value and that there is no strict timeframe on selling the licences.
PetroNeft has previously said that its Russian assets have attracted interest from potential buyers.