StockMarketWire.com - PetroNeft Resources (PTR) has revealed two very good well results at South Arbuzovskoye, boosting production and revenues, said CEO Dennis Francis.

"We have produced oil for the first time from the J1-2 interval in the A-213 well which will increase the oil reserves and flow rates at South Arbuzovskoye," he said in a stateent.

"In addition, our first horizontal well (A-214) has an initial flow rate of over 800 bopd which is the best flow rate thus far in the licence area.

"We will need to monitor the well carefully over the coming months to gauge the decline but the initial results are very encouraging."

HIGHLIGHTS:

Arbuzovskoye Well A-214 Horizontal Production:

· Completed drilling 1,000 m horizontal section with bottom hole at 4,008 m MD.

· Evaluation of pipe conveyed logs indicate 931 m net pay.

· Current rate of production is 800 bopd with less than 5% water.

Arbuzovskoye Well A-213 Vertical Production:

· Two oil zones with 6.9 m net pay. Oil tested in J1-2 interval for the first time at Arbuzovskoye.

· Lower J1-2 zone with 2.9 m net pay currently producing a stable rate of 130 bopd.

· Upper J1-1 zone with 4.0 m net pay expected to come on production by the end of June.

Sibkrayevskoye Well S-374 Planned Vertical Delineation:

· Pad constructed and all materials in place.

· Rig construction is underway with drilling commencement scheduled in July.

Production:

· Current gross production from Licence 61 is about 3,000 bopd.

· This is up sharply due to very encouraging results on the A-214 and A-213 wells recently drilled at Arbuzovskoye field.




At 9:41am: [LON:PTR] Petroneft Resources PLC share price was +0.2p at 2.28p



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