PetroNeft Resources plc, owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, says that Arawak Energy Limited (Arawak) has exercised its option to acquire a 50% interest in the Ledovy Licence (Licence 67).

Highlights: • Arawak to acquire 50% interest in the Licence • Ledovy Licence registered for 25 years • PetroNeft to remain as operator • 2010 work programme being finalised

In December 2009 PetroNeft announced that it had been successful in the state auction for the Ledovy Licence in the Tomsk Oblast. Under a 2008 Area of Mutual Interest Agreement ('AMI') Arawak Energy Limited is entitled to participate in up to a 50 percent interest in the Licence. Following technical and commercial review Arawak has elected to acquire its full 50% entitlement, subject to the completion of a mutually agreeable contract under the terms of the AMI.

PetroNeft will remain as operator of the Ledovy Licence and all costs and future income will be shared on a 50:50 basis.

Licence 67 The Ledovy Licence area is located west of the Ob River in the main oil bearing part of the Tomsk Oblast. The Licence has an area of 2,447 km2 and is surrounded by proven and producing oil and gas fields.

Exploration on the Ledovy Licence began in the 1950s with a total of 8 wells being drilled on large prospects identified by vintage seismic data. Modern 2D seismic data was subsequently acquired from 1980 to 2001. PetroNeft has reviewed the drilled and currently mapped undrilled structures and believes that there is significant upside within existing discoveries, potentially by-passed pay and new exploration prospects within the Licence area. Two of the previously drilled structures, Ledovoye and Sklonavaya, have tested oil but have not yet been assigned reserves. PetroNeft believes that these discoveries have potential to form the basis of a future development project in the Licence, but it is also intended to pursue an active exploration programme. Russian registered C3 (possible) resources are currently 55 million barrels.

Tags: Arawak Energy Corporation, PetroNeft Resources plc