StockMarketWire.com - Petroneft booked a full-year pretax loss of $2.8 million, substantially down on the prior year's loss of $16.4 million.

Revenue was $34.6 million, against $29.0 million.

The prior period was hurt by a $5 million impairment on oil and gas properties, and a $5.1 million loss on intra-group loans.

"Overall, 2012 was a challenging year. While we are pleased we brought a second oil field into production, regrettably this success was overshadowed by the production results from Pad 2 at Lineynoye and the consequent financial constraints that have slowed the Group's development," said CEO Dennis Francis.

"With the Arbuzovskoye, Sibkrayevskoye and Tungolskoye oil fields the Group can generate significant cash in the coming years utilising the infrastructure already in place as well as through the addition of yet to be discovered reserves from our portfolio of exploration prospects," he said.

"The combination of proven production and operating experience, high quality undeveloped reserves and extensive regional infrastructure makes PetroNeft's portfolio highly attractive to a range of financial and industry partners."

Other highlights from Petroneft's full-year results were:

- Average production of 2,204 bopd (2011: 2,049 bopd); FY production of 806,761 barrels

- Arbuzovskoye oil field brought to year-round production

- Group 2P reserves 131 mmbbls

- Capital expenditure of US$14 million (2011: US$52 m)






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