Operational Update

Petroneft Resources PLC
20 September 2007



20 September 2007


                            PetroNeft Resources plc

                               Operational Update


PetroNeft Resources plc ('PetroNeft' or 'the Company'), 100% owner of Stimul-T,
the sole owner and operator of Licence 61, Tomsk Oblast, Russian Federation is
pleased to provide this update on the progress on its 2006/07 three well
drilling programme.


Highlights

•  Positive inflow testing of Lineynoye No. 7 - 125 bopd unstimulated

•  High quality oil - 44 degrees API

•  Planned winter pilot/long term production test of both Lineynoye No. 6
   and No. 7

•  Tungolskoye No. 4 is being sidetracked to fully assess reservoir

•  Full reserves review to be carried out in November 2007 by Ryder Scott



Lineynoye No. 7 Well

Initial analysis of the Lineynoye No. 7 exploration well on the West Lineynoye
Prospect, released on 14 August, confirmed the presence of 2 metres of net
hydrocarbons in the Upper Jurassic J1 sandstone interval. It also confirmed a
Gross Oil Column of 22 meters. Flow testing ('Raising Head' methodology) of the
well has now been successfully completed over a 4 metre gross perforated
interval (-2,502 to -2,506 metres measured depth). During testing, the well
flowed oil at rate of 125 barrels per day. The oil is very high quality with a
44 degrees API gravity.


This well will require an electrical submersible pump for commercial production.
Initial conservative studies based on the pay zone properties and test results
indicate that the well should flow at least 250 bopd with the proper electrical
submersible pump. This level of unstimulated flow is excellent for the region,
where tight reservoirs normally require reservoir Stimulation for production.
Stimulation of the reservoir through hydraulic fracturing will further increase
this flow rate from the well.


Studies are now underway to place the well (along with Lineynoye No. 6) on pilot
/long term production test during the winter season of 2007/08.



Tungolskoye No. 4 Sidetrack

The Tungolskoye No. 4 appraisal well has 15 metres of net oil pay based on the
core data and independent log interpretations. This represents the best
reservoir interval encountered of the 17 wells drilled in the block to date.
However, we are currently sidetracking the existing well in order to overcome
mechanical difficulties and fully test the accumulation at this location.  It is
anticipated the well will be sidetracked and tested before the end of October.


When all testing is completed a reassessment of the reserves in the established
oil fields on Licence 61 will be carried out by outside consultants Ryder Scott.
The results will be incorporated into the Plan of Development.


Dennis Francis, Chief Executive Officer of PetroNeft Resources plc commented:

'We are pleased to announce positive results for the Lineynoye No. 7 flow
testing.  We are especially excited by the demonstrated flow rates and projected
rates on Artificial Lift without Stimulation.  This provides positive results
for ongoing development planning.


We are making progress across the full spectrum of our projects. The Tungolskoye
No. 4 sidetrack will give us necessary information for a full reassessment of
our reserves levels which will be carried out to both SPE and Russian standards
/criteria.  Along with our winter 2007/08 three well drilling programme, we will
conduct two pilot/long term production  tests and also plan to complete the
field development plan in the near future.'




For further information, contact:

Dennis Francis, CEO, PetroNeft Resources plc (Houston)
[phone]

Desmond Burke, Director Investor Relations, PetroNeft Resources plc (Ireland)
[phone]

John Frain/Brian Garrahy, Davy
[phone]

Damien Mauvais, Natixis Bleichroeder
[phone]

Nick Elwes/Paddy Blewer, College Hill (UK)
[phone]


The information contained in this announcement has been reviewed and verified by
Mr. Dennis Francis, Director and Chief Executive Officer of PetroNeft, for the
purposes of the Guidance Note for Mining, Oil and Gas Companies issued by the
London Stock Exchange in March 2006. Mr. Francis holds a B.S. Degree in
Geophysical Engineering and a M.S. Degree in Geology from the Colorado School of
Mines. He has also graduated from the Harvard University Program for Management
Development. He is a member of the American Association of Petroleum Geologists
and the Society of Exploration Geophysicists. He has over 34 years experience
in oil and gas exploration and development.


Glossary of Key Technical Terms

Artificial Lift - Any system that adds energy to the fluid column in a wellbore
with the objective of initiating and improving production from the well.
Artificial-lift systems use a range of operating principles, including rod
pumping, gas lift and electrical submersible pumps.


Gross Oil Column - the total thickness of reservoir and non-reservoir rock above
a common oil water contact.


Rising Head Test - Production flow test run in a well with low formation
pressure. In this case the volume of fluid produced into the production string
is measured at various dynamic levels.  This information provides the basis for
estimating production capacities and future reservoir performance.  In this case
the well tested 125 bopd at an average dynamic level of 1,527 metres.


Stimulation - A treatment performed to restore or enhance the productivity of a
well. Stimulation treatments fall into two main groups, hydraulic fracturing
treatments and matrix treatments. Fracturing treatments are performed above the
fracture pressure of the reservoir formation and create a highly conductive flow
path between the reservoir and the wellbore. Matrix treatments are performed
below the reservoir fracture pressure and generally are designed to restore the
natural permeability of the reservoir following damage to the near-wellbore
area.


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.




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