PetroNeft Resources : Operations Update – Completion of testing of S-375s well

PetroNeft Resources plc ('PetroNeft' or 'the Company')

Operations Update - Completion of testing of S-375s well

PetroNeft (AIM: PTR) an oil & gas exploration and production company operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67 is pleased to provide an update on the S-375s delineation well at Sibkrayevskoye oil field.

Highlights

• Testing of the S-375s well has been completed, confirming the productivity of the reservoir in this part of the oil field.

• An ESP was run in the well and achieved a peak rate of 210 bopd on an 8 mm choke and a sustained rate of 150 bopd on a 4 mm choke.

• The well has been shut in until winter roads can allow oil to be trucked to the Lineynoye processing facilities.

Sibkrayevskoye 375s Well

The cased hole step testing of the S-375s well has been completed. Following this an Electric Submersible Pump (ESP) was installed in the well to determine a stable production rate. The maximum rate on an 8 mm choke was 210 bopd. During the final 5 days of ESP test production the well produced on a 4 mm choke at an average rate of 150 bopd.

Production of the S-375s well has now been suspended as we have filled all storage capacity at site. A total of 1,510 bbls of crude oil was collected. The oil is of high quality with an API gravity of 41API and is very similar to oil from the S-373 well. Winter Production will commence in December, once winter roads are in place to truck the oil to the Lineynoye processing facilities located about 26 kms from Sibkrayevskoye.

The reserve estimate and Development Plan for the field will be updated with the S-375 and S-375s drilling results in the coming months. This data will help to shape our future plans for Sibkrayevskoye.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented:

'We are pleased with the testing results of the S-375s which are in line with our expectations and similar to the S-373 which has been producing at a steady rate of about 200 bopd for the last two winters. We plan to resume production from both wells this winter once winter roads are in place to truck the oil to Lineynoye.

We are also currently updating the field reserves and development plan and look forward to sharing the results of these studies. The development plan will consist of deviated and horizontal wells and, as demonstrated elsewhere in Licence 61, we expect materially higher flow rates from the horizontal wells.'

For further information, contact:

The information contained in this announcement has been reviewed and verified by Mr. Dennis Francis, Director and Chief Executive Officer of PetroNeft, for the purposes of the Guidance Note for Mining and Oil & Gas Companies issued by the London Stock Exchange in June 2009. Mr. Francis holds a B.S. Degree in Geophysical Engineering and a M.S. Degree in Geology from the Colorado School of Mines. He has also graduated from the Harvard University Program for Management Development. He is a member of the American Association of Petroleum Geologists and the Society of Exploration Geophysicists. He has over 40 years' experience in oil and gas exploration and development.

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