PetroNeft Resources plc, the owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to report the discovery of a new oil field in Licence 67 at Cheremshanskaya.

Highlights:

• Cheremshankaya No. 3 well discovers two hydrocarbon pools o Oil discovery in main Upper Jurassic target o Gas/oil discovery in Lower Jurassic target o Successful open hole inflow test on both intervals • Development drilling at Lineynoye continues to push field boundary further north • The hydraulic fracturing programme at Lineynoye to commence shortly

Licence 67 - Cheremshanskaya No. 3

The Cheremshanskaya No. 3 well located on the Cheremshanskaya Prospect in Licence 67 was spudded on 28 August and has been drilled to its planned total depth of 3,100 m MD. The well was drilled adjacent to the Cheremshanksaya No. 1 well which was drilled in 1962 and was targeting potential “missed pay” in the Upper, Middle and Lower Jurassic intervals.

Preliminary analysis of the core, log and open hole test data indicates that two new hydrocarbon pools have been discovered by the well, one in the Upper Jurassic J1 interval and another in the Lower Jurassic J14 interval. There were no hydrocarbon indicators encountered at the Middle Jurassic J13 interval. Additional testing is required to determine the commerciality of the hydrocarbon intervals including potential productive flow rates and fluid composition, which will each be key elements of development planning. Production casing is now being run and cemented in the well. Once this has been completed, the main drilling rig will be moved and a workover rig will then carry out an extensive step rate drill stem testing programme. This process will likely be completed in late 2011.

The Cheremshanskaya No. 3 well is located about 6 km south of the Lomovoye Field which has been developed by Tomskneft (Rosneft). The well is situated near to an all weather road and is accessible year round which would allow early commencement of year round production by trucking oil to market.

Tags: PetroNeft Resources plc