Petroneft shares take a 40% tumble

Shares in Irish exploration company Petroneft fell nearly 40% yesterday on the back of the firm reporting a significantly lower than expected production rate.

The Dublin-headquartered company — whose licences are based in the Russian state of Tomsk — said that total production had increased to around 3,000 barrels of oil per day (bopd) by the end of December; but has declined to 2,300 bopd in recent weeks, mainly due to “a number of issues” connected to numerous “Pad 2” wells.

These issues include higher-than-expected well decline rates and the clean- up of water associated with the Pad 2 fracture programme being less than expected.