PetroNeft Resources plc provided update on Licence 67 Cheremshanskoye Development Drilling. The drilling of up to five development wells at the Cheremshanskoye field (Licence 67) has been delayed for the foreseeable future due to inability to secure financing for the program. Earlier this year the Company announced the award for the provision of drilling services at the Cheremshanskoye field, Licence 67, to the drilling company SSK.

The Company has been working with a Russian domestic bank on the potential financing of a significant portion of the costs for this drilling program. Despite encouraging earlier communications, due to the on-going geopolitical situation, the bank is no longer able to provide a loan facility. The Company will continue to look for alternative financing avenues but at the same time recognising that this is likely to be particularly challenging under the current circumstances.

All fields at Licence 61 remain shut in due to the on-going legal dispute with Nord Imperial LLC regarding storage and transfer of oil by pipeline from Licence 61 to the Transneft Entry point at Zavyalovo. Production at Licence 67 from the C-4 well on the Cheremshanskoye field remains stable at 303 bopd without any signs of decline and no water. The well has, since the start of production produced over 170,000 barrels of oil.