Petroneft production performance improves in January

Oil and gas exploration and production company Petroneft updated the market on its operations on Wednesday, reporting an increase in production performance at licence 61, with 1,847 barrels of oil per day during January, up 6.95% year-on-year.

The AIM-traded firm said good progress had been made on preparations for the fracking programme, with a two-well programme to start during the first week of February.

At licence 67, it said operations to commence year-round production from the C-4 well at the Cheremshanskoye field were on course to start during the second week of February.

o Construction of a road linking C-4 to an all-season road was on target for completion in the second quarter.

“Our success of achieving production growth across our licences has exceeded expectations and is a testament to the hard work and expertise of our local team,” said chief executive officer David Sturt.

“This is an extremely exciting time for the company.”

Sturt said that in the coming weeks, the firm would continue its “low-cost but carefully-considered” programme of operations.

“Each of these operations have the potential to increase production and further improve revenues.”

At 0925 GMT, shares in Petroneft Resources were up 2.43% at 1.04p.