- PetroNeft, an oil & gas exploration and production company operating in the Russian Federation, and 50% owner and operator of Licences 61 and 67, announced it commenced drilling the S-375 delineation well at Sibkrayevskoye.

The S-375 well is being drilled on the northern structural lobe of the field approximately 2km south of existing wells that contained about 10m of net pay.

If successful, it should lead to the development of the Sibkrayevskoye oil field commencing in 2018.

Drilling has now commenced and it is expected to take up to eight weeks to drill and test the well. The Sibkrayevskoye oil field is estimated to contain over 50 mmbls of 2P reserves (>25 mmbbls net to PetroNeft).

Chief Executive Officer Dennis Francis commented: "We are pleased to have drilling of the S-375 well underway.

"We look forward to sharing the results of the well with shareholders and recommencing a significant work programme at Licence 61 in 2018."

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