Petroneft surges on new find
SHARES in Petroneft Resources surged after the Dublin-based oil and gas explorer said it had made its biggest ever oil find in western Siberia, Russia.
Petroneft is prospecting for oil and gas in two Siberian licence areas. It said the new oilfield could produce more than a 44-million barrel pre-drill target after geologists encountered a 12-metre layer of oil.
The company disappointed investors in June when it slashed its output target for the first quarter of 2012. The shares plunged after suffering the biggest one-day fall in five years. Yesterday, the shares surged 21pc to 44.5 cents in Dublin to give the company a market capitalisation of €184m.
"This is very good news from Petroneft," said Davy analyst Caren Crowley.
Last month, the Russian parliament approved tax discounts for small oilfields, as the world's largest crude-oil-producing nation seeks to spur output from companies such as Petroneft, Volga Gas and Exillon Energy. The discounts would lower extraction taxes by as much as 50pc at some oilfields.
Russian Prime Minister Vladimir Putin has called on producers to maintain output at more than 10 million barrels a day for at least a decade to bolster revenues as older and larger deposits go into decline.