Dublin oil firm sees reserves rise

PETRONEFT, the Dublin-headquartered oil and gas exploration company with a focus in Russia, has seen its reserves at its two Tomsk-based licences increase by a little less than 37% to 96.9 million barrels.

The upgrade — from 70m barrels — was made after an independent assessment carried out by reserve auditors Ryder Scott.

Petroneft chief executive Dennis Francis said that

the Ryder Scott findings reinforce the company’s exploration and acquisition successes of last year.

“We’re very pleased to add quality reserves with demonstrated flow rates, which will form an important element of our future development and production growth plans,” he said.

Mr Francis added that Petroneft anticipates “a steady pipeline of new discoveries and developments”, which includes the previously stated 2011 five-well exploration programme, over the coming years.

The company, which has also previously stated that it is open to looking at expansion through small acquisition or new licence tenders, has also successfully revised its existing loan facility with the international investment bank, Macquarie.

Under the three-year loan agreement, Petroneft will have $30m (€21.7m) available to borrow, with the potential for an increase up to $75bn depending on the addition of new discoveries and developments. The borrowing base will be reviewed every six months.