Petroneft Resources Plc

OILVOICE
Petroneft Resources Announces Admission to trading on AIM and IEX
Wednesday, September 27, 2006
Petroneft Resources Plc, an international oil and gas exploration and production company developing hydrocarbon acreage in Tomsk Oblast, Western Siberia, announces its admission to the AIM market of the London Stock Exchange and the IEX market of the Irish Stock Exchange. The Company has raised gross proceeds of €12.2 million (US$15.5 million) by placing 41,480,174 new ordinary shares at a placing price of €0.295 (£19.8p) per ordinary share, indicating a market capitalisation for the Company of approximately €52.1 million (£35 million). Davy is acting as nominated adviser, IEX adviser and broker to Petroneft.

Petroneft Resources plc was established for the purpose of acquiring and developing hydrocarbon acreage in Western Siberia. The Group’s principal asset is a 100 per cent interest in Licence 61, an exploration and production licence located in the Tomsk Oblast of Western Siberia. The Licence was acquired by the Group in 2005 and covers a geographical area of 4,991 km2 in the eastern section of the prolific West Siberian Oil & Gas Basin in Russia. The Licence is valid until 2030 and may be extended based on an approved development plan.

Licence 61 is a Core Area which contains two proven oil fields, referred to as Lineynoye and Tungolskoye and, in addition, has upside reserve potential contained in 25 additional prospects and potential prospects identified by seismic surveys. The Group’s work programmes and activities are focused on the development of this core area through the determination of its full upside reserve potential and the timely monetisation of its existing Proved and Probable reserves, currently estimated at 33.5 million barrels of oil.

Ryder Scott Petroleum Consultants estimates a total reserves level of (P1+P2+P3+P4) of 424m barrels of oil in its competent persons report: illustrating the considerable potential of Licence 61. The details of these reserve figures are as follows:

Lineynoye and Tungolskoye Oil Fields;

Proved (P1) + Probable (P2) = 33.5 million barrels
Possible (P3) = 37.1 million barrels
Total (P1+P2+P3) = 70.6 million barrels

Twenty Prospects and Five Potential Prospects (Leads);

Possible (P3) = 253 million barrels
Exploration Resources (P4) = 100 million barrels

The Group’s senior management team has substantial experience and knowledge of acquiring, exploring and developing hydrocarbon assets and in particular of acquisition, exploration, development, production and marketing requirements in Russia.

With a geographical focus principally on Russia, the Group intends to continue to identify and evaluate exploration and production acquisition and development opportunities, by taking advantage of the Directors' and senior management’s industry relationships, experience and expertise developed in Russia over the last 16 years, in order to develop and diversify the Group’s asset portfolio.

Dennis Francis, Chief Executive Officer of Petroneft, commented,

“We are delighted to have received such a positive backing from international capital markets for our oversubscribed IPO. These funds will be used to execute a 3 well operational programme designed to prove up our reserves base and take the first step towards production. We look forward to updating the market on our progress.

Tomsk Oblast is a world class petroleum province, with high quality staff and infrastructure in place on the ground. We are confident that our unique combination of experienced international management, top quality local operational staff and a supportive shareholder register gives us every confidence for the future”