Petroneft starts drilling at Korchegskaya

PetroNeft Resources plc, the owner and operator of Licence 61, Tomsk Oblast, Russian Federation provides an update on the progress on its 2007/08 three well drilling program and pilot production.

Drilling has now commenced on the Korchegskaya-1 exploration well, the first well to be drilled on the Korchegskaya prospect. The well was spudded on schedule on February 29, and has principal target horizons for the well in Upper Jurassic sandstone reservoirs, at a depth of 2,450 metres (subsea). The total planned depth for the well is approximately 2,800 metres.

The company has anticipated the well will be drilled, logged and tested within approximately 65 days of commencement. Ryder Scott estimates that this prospect has potential for 36 million bbls of possible reserves (P3). If successful, Korchegskaya will be incorporated in the overall phased development for Licence 61.

A rig has been moved to site and is being assembled on the Lineynoye-8 delineation well that is scheduled to commence drilling in May 2008.

At the West Korchegskaya-1 exploration well, the rig is being moved to site and it is anticipated that drilling will commence in June 2008.