Petroneft posts half-year profits of $3.8m

Listed explorer Petroneft made profits of $3.8 million in the first six months of the year, according to interim results released today.

The Irish-headquartered company's operations are focused on two licences in the Tomsk Oblast region of Siberia in Russia.

It reported today that revenues for the six months ended June 30th were $16 million on the back of production of almost 400,000 barrels of oil during the period.

Operating profits were $5 million.

The company's operations lost $3.8 million in the first six months of last year, as it had yet to begin oil production at that point.

After finance costs, pre-tax profits came in at $3.8 million, against a $5 million loss at this level during the first half of last year.

During the period, Petroneft made a significant find during exploratory drilling at Sibkrayevskaya in its licence 67 area.

Oil flowed from the well at a rate of 170 barrels a-day, and the company believes that the find has the potential to increase its existing reserves by around 50 per cent.

It also refinanced debt with Macquarie Bank, and now has new credit terms with a longer repayment schedule.

Under the new deal, it has an initial amount of $30 million available to it to draw down with the potential to increase that to $75 million, depending on new discoveries and developments and subject to credit approval.