SHARES in the oil and gas explorer Petroneft spiked more than 6pc yesterday, after the Russian government reduced taxes on small oil fields.
Russian authorities have reduced the "mineral extraction tax" (MET) by up to 50pc for smaller fields in the country.
The tax cut will be of benefit to Petroneft, which is focused on two of the small fields in the Tomsk Oblast area of Siberia.
The change in tax rates will add around €8m in cash flow next year to Petroneft's bottom line, and will increase thereafter.
The change in law does not come into force until January 1.
Petroneft said it had the potential to add up $7 profit per barrel in the long term, assuming an $80 per barrel export price.
Meanwhile, Circle Oil said it has completed the latest phase of its well management programme at the Al Amir field in Egypt.
The company is now moving to the Geyad field, also in Egypt, where it will drill another well for the purpose of water injection.
Petroneft closed up 6.9pc at 39c. Circle Oil finished flat in London.