PetroNeft Resources to increase stake in Licence 67 in Russia to 90%

Irish oil and gas company PetroNeft Resources has signed a heads of terms agreement to acquire an additional 40% stake in Licence 67 in Russia for $2.9 million from Belgrave Naftogas (formerly Arawak Energy Russia).

Licence 67 is a 2,447 km2 oil and gas block located in the Western Siberian Oil and Gas Basin in the Tomsk Oblast.

The deal increases the stake of PetroNeft Resources in Licence 67 to 90%.

Licence 67 was acquired by PetroNeft Resources through a state auction in 2009 for 42 million Roubles ($1.39 million). In 2010, Belgrave Naftogas exercised its right under the AMI agreement to take part in the Russian oil and gas block for a non-operating stake of 50%.

Belgrave Naftogas will now have a stake of 10% in Licence 67. In early 2020, Belgrave Naftogas was acquired by UK-based Sarum Energy from Vitol.

The licence contains the Ledovoye oil field along with various leads and prospects.

PetroNeft Resources and Belgrave Naftogas had drilled three wells, two of which on the Cheremshanskoye field and one on the Ledovoye field, with all the wells intersecting oil.

After the drilling of the L-2a well on the Ledovoye field, the 2P reserves for the field was estimated by oil and gas engineering and geological consultant Ryder Scott at 14 mmbbls and 3P reserves of 17.4 mmbbls.

PetroNeft Resources and Belgrave Naftogas will now work together to finalize and execute a work program for developing the Cheremshanskoye field and the further investigation of Ledovoye during the winter months.

David Sturt – CEO of PetroNeft Resources said: “This potential acquisition is consistent with the Board and Management’s previously announced commitment of enhancing shareholder value through boosting production, reserves and revenue. As early as next month the asset is expected to transform from being an exploration to a producing asset.

“This agreement will add significant impetus to our plans to develop the Licence.”