Petroneft Resources PLC
14 January 2008
14 January 2008
PetroNeft Resources plc
('PetroNeft')
Acquisition of Refinery Site
PetroNeft is pleased to announce that it has acquired a site for a Mini-Refinery
at Pervomayka in the Kolpashevo District of the Tomsk Oblast, south of the
Company's current operational area in Licence 61.
The 7.5 hectare site is located approximately 200 km northwest of the city of
Tomsk at the Transneft pipeline Pervomayka pumping station in the Kolpashevo
District. The Regional Administration has given permission for the use of the
land for a Mini-Oil-Refinery. Some site clearance and preliminary ground works
were carried out by the previous owner and the off-take flange for the Transneft
pipeline connection is already in place.
The Company's medium term strategy is to participate in both the upstream and
downstream segments of the oil and gas business in Russia. Vertical integration
will ensure the Company of a reliable outlet for its domestic oil sales as well
as allow it to participate in certain tax benefits offered to the refining
sector. The end result will be an improved margin on each barrel of production
run through the facility. Acquisition of the Pervomayka site gives the Company a
very viable option, but not an obligation, to enter into the downstream business
at the appropriate time.
The Company's current focus remains the development of the reserves in Licence
61, while seeking new acquisitions and investment opportunities to broaden the
Company's portfolio and add value to its existing reserves.
Reserves Report
The reserves report for Licence 61, as at 31 December 2007, is being finalised
by Ryder Scott and is expected to be published within the next month.
Dennis Francis, Chief Executive Officer of PetroNeft commented:
'This acquisition gives us the option of improving our margins and developing
alternate income streams in the future; thereby, allowing PetroNeft to generate
maximum value from its business in Licence 61 and provide important product
supplies in the Tomsk Region.'
For further information, contact:
Dennis Francis, CEO, PetroNeft Resources plc (Houston)
+1 713 988 2500
Paul Dowling, CFO, PetroNeft Resources plc (Dublin)
+353 144 33720
Desmond Burke, Director Investor Relations, PetroNeft Resources plc (Ireland)
+353 52 53226
John Frain/Brian Garrahy, Davy
+353 1 679 6363
Damien Mauvais, Natixis Bleichroeder
+44 207 220 5184
Nick Elwes/Paddy Blewer/Simon Whitehead, College Hill (UK)
+44 207 457 2020
Forward Looking Statements
This announcement contains forward-looking statements. These statements relate
to the Company's future prospects, developments and business strategies.
Forward-looking statements are identified by their use of terms and phrases such
as 'believe', 'could', 'envisage', 'potential' 'estimate', 'expect', 'may', '
will' or the negative of those, variations or comparable expressions, including
references to assumptions.
The forward-looking statements in this announcement are based on current
expectations and are subject to risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by those
statements. These forward-looking statements speak only as at the date of this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
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