Petroneft plans further Siberia drilling this year

Petroneft Resources — the Irish explorer with a specific operational focus on Siberia — is planning to re-commence drilling activity “later this year“, depending on successful outcomes of current debt re-financing talks and farm-out discussions.

The Dublin-based exploration firm, which has of late been concentrating on building up oil production from existing wells in order to pay down debt said, yesterday, that production levels at its Tomsk-based Arbuzovskoye field have remained steady at 2,500 barrels of oil per day (bopd) and production at its Lineynoye field “also remains very stable, with little decline evident”.

It added that the company has also benefited from strong realised oil prices in recent months.

In March, Petroneft began making monthly repayments of $650,000 to Macquarie Bank and continues to do so; with its current debt standing at $13.6m.

The company is in talks with Macquarie over re-financing its debt and claims to be making “particularly good progress”.

It is also in continued talks with parties regarding the farming-out of part of its Licence 61 asset, in the Arbuzovskoye field.

At the company’s AGM in Dublin yesterday, chief executive Dennis Francis said management appreciated shareholders’ continued patience and support, while negotiations are completed.

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