By Alex MacDonald

LONDON--Russia-focused oil and gas exploration company PetroNeft Resources PLC (P8ET.DB) said Tuesday that it has restarted drilling operations following the completion of a joint venture agreement with Oil India Ltd. (533106.BY) in July.

PetroNeft agreed to give Oil India a 50% interest in license 61 in return for an $85 million investment.

The investment includes a $35 million upfront payment which PetroNeft used to become debt-free. Another $45 million will be used to fund the exploration and development of license 61 while the remaining $5 million will be paid as a bonus if the Sibkrayevskoye Field reaches 7,500 barrels of oil per day within the next five years.

"The initial meetings of the Joint Venture Working Group were extremely productive and we look forward to working closely with our new partner Oil India," said PetroNeft Chief Executive Officer Dennis Francis.

The company has put in place a multi-well drilling program which will start with the Tungolskoye No. 5 well. It is also embarking upon a major seismic program which will shape the future direction of its drilling activity.

Write to Alex MacDonald at alex.macdonald@wsj.com