Petroneft production ‘steady’ at 2,500 barrels a day

Irish exploration firm Petroneft said today its oil production was steady at 2,500 barrels per day, and that it was "realising strong oil prices".

In an operations update prior to its AGM, the company also indicated it was beginning to see positive results from pressure tests at its Arbuzovskoye field in Russia.

“In recent weeks, we have begun to see some positive impact in the production well nearest to the injection well. This should expand to other nearby production wells in the coming months,” it said.

Petroneft reported production at the nearby Lineynoye field remained “very stable with little decline evident”.

The company said discussions on both the re-financing and "planned farmout" of its licence 61 area in Tomsk Oblas, Siberia were continuing, with "good progress" reported on concluding a re-financing of its Macquarie Bank facility.

It said it was continuing to make the monthly repayments of $650,000 to the bank from operational cash flows, with the current balance on the facility put at $13. 6 million.

Subject to the successful completion of re-financing of the bank debt, or a farmout, it said plans were in place to restart drilling operations later this year.

"We have made good progress on the re-financing and farmout fronts in the last month. We appreciate shareholders continued patience and support while these negotiations are completed," Chief executive Dennis Francis said.

“The successful completion of either of these objectives will enable us to recommence our drilling programme and return to building production,” he added.