PetroNeft reports half-year loss of €2m

Irish oil and gas explorer PetroNeft has reported a $2.3 million (€2m) loss for the six months to the end of June due to the slump in oil prices.

The loss includes its share of the losses on the joint ventures relating to Russian licences 61 and 67 of $2.4 million and $200,000 respectively.

The firm said gross production from licence 61 was now 3,200 barrels of oil per day, representing a 39 per cent increase in production on last year.

Finance revenue also rose marginally to $1.6 million on the back of interest from loans to the joint ventures.

"We have had a busy year so far, with good success in growing production and our longer term development and exploration plans for our portfolio. However market conditions remain challenging and there are few signs of sustained improvement in oil prices in the near term," said chairman David Golder.

"We are now focussed on commencing the development of our largest field, Sibkrayevskoye, in 2017 which, with the expected Oil India loan agreement to be signed, the company is fully financed for."

Davy analyst Joeb Langbroek said with better average pricing in the second half anticipated and production steady at 3,200 b/d gross at present (1,600 barrels per day net to PetroNeft), the second half is expected to show an improvement on the first half.