Petroneft to extract oil earlier than expected
Published 30/07/2010 | 05:00
PETRONEFT, the exploration company looking for gas and oil in Russia, said it plans to begin extracting oil for the first time within weeks, earlier than previously expected.
The Dublin-based company will begin year-round production next month and has successfully drilled a fifth and sixth well in the area where it is looking for oil in western Siberia. The company plans to drill three more wells.
"These results are reassuringly in line with expectations, as indeed the entire development project has been," said Davy Stockbrokers analyst James McCullough. "The key obstacle remaining is hitting the production ramp-up schedule, but there has been nothing to suggest that PetroNeft's target of 4,000 barrels of oil per day by the end of the year will not be achieved. In fact, we see this as a reasonably conservative target."
The shares surged to a record high of 52c on Dublin's ESM market. The shares have gained 143pc so far this year, making them the second best performing shares on the Dublin stock exchange and giving the company a market value of €196m.
PetroNeft has about $50m(€38m) available to spend on licences or companies, Finance Director Paul Dowling said this week.