Petroneft Resources losses cut by foreign exchange

DUBLIN-headquartered oil and gas exploration firm Petroneft Resources managed to cut its losses by $1.4 million (€1.13m) in 2009, according to its latest set of annual results.

The IEX and AIM-listed company – whose chief assets are two licences in the Russian province of Tomsk – has reported a net loss of $6.47m for 2009; down from a loss of just over $7.9m in 2008. The fall in losses was mainly down to a decline in foreign exchange losses on dollar-based loans made by Petroneft to some of its wholly owned subsidiary companies during the past 12 months.

Petroneft’s chief executive Dennis Francis said that the company’s plans for this year remain ahead of schedule.

He added that the company’s exploration programme is set to recommence in October and year-round production is on course to begin by the third quarter of the year.

“Last year was a year of major operational, financial and strategic progress for Petroneft. This progress has been maintained in 2010 and we are very confident that we will achieve our objective of commencing year-round production from licence 61 during the third quarter of 2010, which will transform the revenue base of the group,” he added.