Wednesday 29 January 2020

Petroneft's oil reserves up after review

Peter Flanagan

THERE was much-needed good news for Petroneft's shareholders yesterday after an independent review increased its proven oil reserves by 50pc.

The annual audit, carried out by American consultants Ryder Scott, increased the company's proven reserves by half to 20.03 million barrels and its proven and probable reserves by 36pc to 131.7 million barrels.

Petroneft said the increase was due mainly to the Sibkrayevskoye and North Varyakhskoye oil fields.

CEO Dennis Francis said the report "reinforced the exploration potential of its licences".

Petroneft has struggled in recent weeks, with the share price slumping 36pc in mid-February amid problems at one of its wells in Siberia. Yesterday's news boosted the stock, to the point that Petroneft closed at 12c, up 5.4pc on the day.

Davy Stockbrokers' Caren Crowley said she expected the broker to reduce its target price for the firm from the 80p (96c) it is at the moment but described the current share price as "punitive".

Meanwhile, Aminex jumped 12.17pc to just under 7c after the explorer said it had resumed drilling at the Ntorya-1 exploration well in Tanzania.

Irish Independent

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