Admission to AIM/IEX

Petroneft Resources Plc
27 September 2006

             Petroneft Resources Plc ('Petroneft' or 'the Company')



                      Admission to trading on AIM and IEX

                            US$15.5 million Placing





Petroneft Resources Plc, an international oil and gas exploration and production
company developing hydrocarbon acreage in Tomsk Oblast, Western Siberia, is
pleased to announce its admission to the AIM market of the London Stock Exchange
and the IEX market of the Irish Stock Exchange.  The Company has raised gross
proceeds of €12.2 million (US$15.5 million) by placing 41,480,174 new ordinary
shares at a placing price of €0.295 (£19.8p) per ordinary share, indicating a
market capitalisation for the Company of approximately €52.1 million (£35
million).  Davy is acting as nominated adviser, IEX adviser and broker to
Petroneft.



Petroneft Resources plc was established for the purpose of acquiring and
developing hydrocarbon acreage in Western Siberia.  The Group's principal asset
is a 100 per cent interest in Licence 61, an exploration and production licence
located in the Tomsk Oblast of Western Siberia.  The Licence was acquired by the
Group in 2005 and covers a geographical area of 4,991 km2 in the eastern section
of the prolific West Siberian Oil & Gas Basin in Russia. The Licence is valid
until 2030 and may be extended based on an approved development plan.



Licence 61 is a Core Area which contains two proven oil fields, referred to as
Lineynoye and Tungolskoye and, in addition, has upside reserve potential
contained in 25 additional prospects and potential prospects identified by
seismic surveys.  The Group's work programmes and activities are focused on the
development of this core area through the determination of its full upside
reserve potential and the timely monetisation of its existing Proved and
Probable reserves, currently estimated at 33.5 million barrels of oil.



Ryder Scott Petroleum Consultants estimates a total reservs level of
(P1+P2+P3+P4) of 424m barrels of oil in its competent persons report:
illustrating the considerable potential of Licence 61.  The details of these
reserve figures are as follows:


Lineynoye and Tungolskoye Oil Fields;
       Proved (P1) + Probable (P2) =                     33.5 million barrels
       Possible (P3) =                                   37.1 million barrels
       Total (P1+P2+P3) =                                70.6 million barrels

Twenty Prospects and Five Potential Prospects (Leads);
       Possible (P3) =                                   253 million barrels
       Exploration Resources (P4) =                      100 million barrels



The Group's senior management team has substantial experience and knowledge of
acquiring, exploring and developing hydrocarbon assets and in particular of
acquisition, exploration, development, production and marketing requirements in
Russia.



With a geographical focus principally on Russia, the Group intends to continue
to identify and evaluate exploration and production acquisition and development
opportunities, by taking advantage of the Directors' and senior management's
industry relationships, experience and expertise developed in Russia over the
last 16 years, in order to develop and diversify the Group's asset portfolio.






Details of placing


Placing Price                                                                            €0.295 (£19.8p)
Number of New Ordinary Shares                                                                 41,480,174
Directors' Participation in the Placing                                                        2,341,623
Number of Ordinary Shares in issue before Admission                                          135,145,084
Number of Ordinary Shares in issue following the Placing                                     176,625,258
and Admission
Number of Options in issue on Admission                                                     6,76 million
Number of Warrants in issue on Admission                                                    2.67 million
Number of Ordinary Shares on a fully diluted basis                                        186.05 million
following the Placing
Placing Shares as a percentage of the Enlarged Share                                               23.5%
Capital
Directors % of Enlarged Share Capital subject to 12                                                  32%
month lock in
Other shareholders' % of Enlarged Share Capital subject                                               9%
to 6 month lock in
Other Shareholder's % of Enlarged Share Capital subject                                              13%
to orderly market arrangement
Estimated cash proceeds of the Placing receivable by the                                   €11.2 million
Company (net of expenses)
Market capitalisation of the Company at Admission at the                     €52.1 million (£35 million)
Placing Price
AIM/IEX symbol                                                                                PTR / P8ET
ISIN for the Ordinary Shares                                                                IE00B0Q82B24



Dennis Francis, Chief Executive Officer of Petroneft, commented,



'We are delighted to have received such a positive backing from international
capital markets for our oversubscribed IPO. These funds will be used to execute
a 3 well operational programme designed to prove up our reserves base and take
the first step towards production. We look forward to updating the market on our
progress.



Tomsk Oblast is a world class petroleum province, with high quality staff and
infrastructure in place on the ground. We are confident that our unique
combination of experienced international management, top quality local
operational staff and a supportive shareholder register gives us every
confidence for the future'



Enquiries:


Petroneft
    Dennis Francis, CEO
    Des Burke, Director                                                         [phone]

Davy                                                                            [phone]
    John Frain
    Brian Garrahy

College Hill                                                                   [phone]
    Nick Elwes
    Paddy Blewer




Further Information



Further information on the Company and the securities subject to Admission are
contained in an admission document dated 21 February 2006 (the 'Admission
Document').  Terms defined in the Admission Document have the same meaning in
this announcement.  Copies of the Admission Document are available to the
public, free of charge, at the offices of Davy, Davy House, 49 Dawson Street,
Dublin 2, Ireland and the offices of White & Case, 5 Old Broad Street, London,
EC2N 1DW, United Kingdom from the date of this document until at least one month
after Admission.





Biographies of key personnel



G. David Golder (aged 58) Non-Executive Chairman

Mr Golder has over 36 years' experience in the petroleum industry and most
recently was Senior Vice President of Marathon Oil Company ('Marathon') until
his retirement in 2003.  From June 1996 to 1999, Mr Golder was seconded from
Marathon to Sakhalin Energy Investment Company where he was Executive Vice
President - Upstream. Located in Moscow, he managed all upstream activities
which focused on the oil development and company infrastructure aspects of the
Sakhalin II Project onshore and offshore Sakhalin Island. In addition, he
managed the planning and implementation of the US$650 million development of the
Piltun-Astokhskoye oil field and associated infrastructure. Mr Golder was
Co-Chairman of the Joint Supervisory Board which oversaw the preparation and
negotiation of the Sakhalin II Production Sharing Agreement. Mr Golder is
currently President of David Golder Consulting, LLC and a member of the Society
of Petroleum Engineers. He has a BSc degree in Petroleum & Natural Gas
Engineering from Pennsylvania State University and has completed the Program for
Management Development at Harvard University.



Dennis Francis, (aged 57) Chief Executive Officer

Mr Francis has over 35 years' experience in the petroleum industry and was with
Marathon Oil Company for 30 years. He started work with Marathon as a geologist/
geophysicist and held various international positions. In 1990, Mr Francis
became USSR/FSU task force manager responsible for putting together a special
task force to develop new opportunities for Marathon in Russia. Marathon and its
partners ultimately won the first Russian competitive tender, which was to
develop the Sakhalin II Project offshore Sakhalin Island. Mr Francis managed the
progression of this project within Marathon. He represented Marathon as
shareholder and was a director on the board of Sakhalin Energy Investment
Company during the Phase I Project Development. He was also a member of the
joint supervisory board with oversight responsibility for the Sakhalin II
Production Sharing Agreement. He was a recipient of the Governor of Sakhalin
Award for his efforts associated with the Sakhalin II Project and also managed
Marathon's acquisition of the Khanty Mansiysk Oil Company in 2003. Mr Francis is
a member of the American Association of Petroleum Geologists and Society of
Exploration Geophysicists. He has a BSc degree in geophysical engineering and a
MSc degree in geology both from the Colorado School of Mines. He has also
completed the Program for Management Development at Harvard University.



Dr David Sanders, (aged 57) Vice President and General Legal Counsel

Dr Sanders is an attorney of law and has over 30 years experience in the
petroleum industry, including 15 years of doing business in Russia.  In 1988,
Dr. Sanders joined Marathon Oil Company where he analysed and reviewed joint
venture agreements for worldwide production until his assignment in 1991 to the
negotiating team for the Sakhalin II Project in Russia. In 1994, he was seconded
for one year as an attorney to Sakhalin Energy Investment Company in Moscow. He
then provided commercial guidelines and transactional analysis of numerous
Russian projects to Marathon's CIS Joint Ventures Group and later became the
lead negotiator for Russian projects in Marathon's Business
Development-Commercial & Negotiations Group. Dr Sanders has a degree in
electronics from Pennsylvania Institute of Technology, a liberal arts degree
from the University of Houston and a doctorate of jurisprudence from South Texas
College of Law. He is a member of the State Bar of Texas and of the American Bar
Association.




Desmond Burke, (aged 59) Director of Planning and Investor Relations

Mr Burke has over 30 years of experience as an exploration geologist and as an
executive of publicly quoted companies in Ireland, Canada and Australia. From
1983 to 1993, he was managing director of Burmin Exploration and Development plc
('Burmin'), a company that was admitted to trading on the Exploration Securities
Market ('ESM') of the Irish Stock Exchange in 1987. During that period Mr Burke
was also president of Aranlee Resources Ltd, Burmin's Canadian subsidiary,
listed on the Vancouver Stock Exchange, and managing director of Burmin's
Australian subsidiary, Ashling Resources NL. Following the merger of Burmin with
Sipa Resources NL, an Australian company, in 1994, Mr Burke became a director of
Sipa. From 1995 to 2000, Mr Burke was managing director of Ormonde Mining plc,
which was admitted to trading on the ESM in 1996 and on the Vancouver Stock
Exchange in 1998. Mr Burke graduated from University College Dublin with a BSc
in geology, botany and zoology and an MSc in mineral exploration from the
University of London Imperial College.



Thomas Hickey, (aged 38) Non-Executive Director

Mr Hickey is a chartered accountant and has been Chief Financial Officer and a
director of Tullow Oil plc since 2000. Prior to joining Tullow Oil plc he was an
Associate Director of ABN AMRO Corporate Finance (Ireland) Limited, which he
joined in 1995. In this role, he advised public and private companies in a wide
range of industry sectors in the areas of fund raising, stock exchange
requirements, mergers and acquisitions, flotations and related transactions. Mr.
Hickey has a degree in Commerce from the University College Dublin and a Fellow
of the Irish Institute of Chartered Accountants.



Vakha A. Sobraliev, (aged 52) Non-Executive Director

Mr Sobraliev has over 30 years experience operating and managing energy service
companies and state operating units exploring for and exploiting oil resources
in the Western Siberian Oil and Gas Basin. Mr Sobraliev is currently a
shareholder and General Director of Tomskburneftegaz, LLC an oil and gas well
drilling and services company operating in Western Siberia. This company owns
over 15 exploration and production drilling rigs and associated support
equipment and mechanical repair facilities. From 1975 to 2000, Mr Sobraliev
worked for Tomskneft and Strezhevoy Drilling Boards in various drilling and
economic capacities including chief engineer and chief accountant. He has
degrees in mining engineering and economics from Tomsk Polytechnic Institute and
the Tomsk State University respectively. Mr Sobraliev is a resident of Tomsk,
Russia.





Senior Management



Alexey Balyasnikov (aged 61) General Director of Stimul-T

Mr Balyasnikov has over 32 years of experience in the Russian oil and gas
industry. He worked for Marathon in various capacities, including as head of
Marathon's representative office in Moscow, from 1990 to 2004. Most recently he
has worked for Petroneft LLC on numerous projects including under contract to
Foster Wheeler Energy LTD as Russian Project Manager of a large due diligence
project for TNK-BP in Western Siberia. Prior to joining Marathon, Mr Balyasnikov
was a senior geophysical researcher for the Moscow Research Institute.  Mr
Balyasnikov has a degree in geophysics from St. Petersburg University. He is a
native Russian speaker who is fluent in English.



Alexander Frenovsky (aged 58) Executive Director of Stimul-T

Mr Frenovsky, a former general director and chief engineer of JSC
Tomskneftegazgeologia, the former Russian state enterprise that discovered and
delineated the oil and gas fields in the Tomsk Region. Mr Frenovsky has over 34
years' experience in the oil industry and has received a state medal 'For
Development of the Subsurface and Oil and Gas Complex of West Siberia' and the '
Merited Worker of Geological Exploration' badge of honour. He participated in
the discovery of fields in the Tomsk Region and took part in the development of
15 of the oil fields. Mr Frenovsky graduated in 1971 from the Oil University in
Ufa, Russia, with a specialisation in the 'drilling of oil and gas wells'.




Dr Nikolay Karapuzov (aged 61) Chief Geologist and Geophysicist of Stimul-T

Dr Karapuzov was chief geophysicist/chief geologist of JSC
Tomskneftegazgeologia, where he worked for 35 years and directly participated in
the discovery of 17 oil fields in the area.  Dr Karapuzov has been awarded the
title 'Honourable Geologist of Russia' by the Russian government for his
contribution to the development of the subsurface in Tomsk Region. Dr Karapuzov
graduated from Voronezh State University in 1970 with specialisation in '
geophysical methods of prospecting and exploration of hydrocarbons'.




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