Petroneft reserves up 36.8 per cent

Irish oil and gas exploration firm Petroneft has announced a 36.8 per cent increase in assessed reserves at its licences in the Russian Federation.

Petroneft owns and operates Licences 61 and 67 in Tomsk Oblast in southwestern Siberia.

The assessment, which was carried out by independent reserve auditors Ryder Scott, is based on the results of exploration during the 12-months to the end of December 2010.

It shows that total proved and probable reserves net to Petroneft have risen by 36.8 per cent to 96.9 million barrels.

Petroneft chief executive Dennis Francis said the reserve report reinforced the exploration and acquisition successes of 2010 by recognising material new commercial reserves at Arbuzovskoye and Ledovoye.

"We are very pleased to add quality reserves with demonstrated flow rates which will form an important element of our future development and production growth plans," he said.

Mr Francis also said the group anticipates a steady pipeline of new discoveries and developments including that from its 2011 five well exploration programme.

Petroneft today also announced the agreement of a new loan facility which could provide it with up to €54.2 million (€39.2 million). Under the three-year loan the initial amount available will be $30 million  (€21million) with potential to increase up to $75 million (€54 million) through the addition of new discoveries and developments subject to credit approval.

The borrowing base is to be reviewed every six months, the firm said.