Petroneft Resources Russia production up 41%

Petroneft Resources was on the front foot after a well-received operational update in which it said production from license 61 in Russia had risen 41% since the start of the year.

The oil and gas exploration and production company said current gross production stands at around 2,600 barrels of oil equivalent per day.

It said the L-10 well at West Lineynoye was successfully completed and brought online at a rate of 230 boepd, while the adjacent L-8 well is producing around 50 boepd from the same reservoir interval.

Chief executive officer Dennis Francis said: "We are very pleased with the L-10 well result, which again clearly demonstrates the potential for materially enhanced flow rates from horizontal production wells.

“This well also demonstrates that with proper planning, we can drill similar wells in a cost effective manner with a standard Russian exploration drilling rig. This significantly increases our inventory of ready to drill wells in today's low oil price market.”

At 1028 BST, Petroneft shares were up 3.2% at 4.85p.