Petroneft Resources vs Petroceltic International

Comordha

An interesting graph showing the fortunes of two Oil & Gas Exploration Penny stocks trading on the ISEQ over the last 6 months. One was higher risk with more potential gains, the other was guaranteed find on a much smaller scale.

ranger4

Comordha wrote: »

An interesting graph showing the fortunes of two Oil & Gas Exploration Penny stocks trading on the ISEQ over the last 6 months. One was higher risk with more potential gains, the other was guaranteed find on a much smaller scale.

PCI sp performance very dissapointing alright, Proposed italian offshore drilling ban also not helping but i continue to hold stock.

Comordha

I am still positive, a couple of opportunities still in the pipeline. I am just glad I hold Petroneft too as it has cushioned my PCI losses. I bought PCI originally at 7cent per share but then got greedy when it started rising and bought more at 14cent. They then went up to 20 or 22 cent, I can't remember now. Was sitting on a nice profit before it tanked. The greed got me on this occasion.

ranger4

Comordha wrote: »

I am still positive, a couple of opportunities still in the pipeline. I am just glad I hold Petroneft too as it has cushioned my PCI losses. I bought PCI originally at 7cent per share but then got greedy when it started rising and bought more at 14cent. They then went up to 20 or 22 cent, I can't remember now. Was sitting on a nice profit before it tanked. The greed got me on this occasion.

Currently hold 100k of pci, Pci with possibly 10th largest gas field in world as part of their buisness i would like to hear of possible buyout intrest from the Likes of India-asia etc to give kick to upside this stock needs.

Thargor

Bought into PCI when they were 10.50, sold out 2 months later when they were 10.25 and put it into Range Resources (RRL) instead, currently up 18.5% on that with a good rns expected tonight or tomorrow and very big things in coming year so glad I did it.

When do you expect PCI to start rising again? I dont have any cash free, just wondering.

ranger4

Thargor wrote: »

Bought into PCI when they were 10.50, sold out 2 months later when they were 10.25 and put it into Range Resources (RRL) instead, currently up 18.5% on that with a good rns expected tonight or tomorrow and very big things in coming year so glad I did it.

When do you expect PCI to start rising again? I dont have any cash free, just wondering.

Hoping sp has hit bottom or there abouts and starts to recover, Italy needs cash and possible ban on offshore drilling which has dented investor confidence woint occur.

ranger4

ranger4 wrote: »

Hoping sp has hit bottom or there abouts and starts to recover, Italy needs cash and possible ban on offshore drilling which has dented investor confidence woint occur.

Anyone else buying at current sp or expect to buy cheaper in next few weeks.

lucky-colm

bought about 1000 euros of these about 10mths ago at 14.75
was expecting great things from them but it never materialised even though it did goto 21-22 cents at one stage

maybe i should have locked in my 50% profit then

ranger4

lucky-colm wrote: »

bought about 1000 euros of these about 10mths ago at 14.75
was expecting great things from them but it never materialised even though it did goto 21-22 cents at one stage

maybe i should have locked in my 50% profit then

Negitive news with italy prosponing off shore drilling and dry well at Tunisia hasnt helped sentiment but i am hoping to see renewed interest with sp as rig is to be moved to start drilling of sidi Toui-4 so we should see gradual sp rise on run upto results.

Comordha

It's very nice to be invested in Petroneft from around the same time. It's working as a nice hedge for me. I would also add that the PCI share price seems to have stabilised around the 11 cent mark (or around 9.2p) so at least there is some comfort in that. There is activity lined up for next few months too, even without Italy.

Comordha

For all the Petrocelters out there, fairly positive write-up here to calm nerves a little -

http://www.proactiveinvestors.co.uk/companies/news/20621/petroceltic-continues-to-strive-to-be-a-full-cycle-exploration-and-production-company-20621.html

paidi09

a good time to buy in maybe?

Comordha

I'm already invested since the find itself, plenty going on here over next few months so I reckon it's a good time to punt alright but as with all junior exploration companies there are high risks attached.

BSPOKE20

Anyone know why the sudden increase in Petroneft over the last few days?
Is it a good reason to stock up?

Comordha

This is why, dated last Monday. Shows the confidence and we didn't even have to foot the bill which is normally the case with these juniors.


PetroNeft Resources plc ("PetroNeft" or the "Company")



US$43 million Placing

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PetroNeft Resources plc (AIM: PTR), the owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to announce a conditional placing raising gross proceeds of approximately US$43 million.



Highlights:



Gross proceeds of US$43 million raised at STG£0.43 per share in a substantially over subscribed placing with international institutional investors


Funds will be used to finance an accelerated exploration programme, business development and general corporate overhead


2010/11 Exploration programme with potential to more than double existing 2P reserves


Low risk, fully funded development project with significant production upside


On course to achieve year end 2010 production target of 4,000 bopd by early December, rising to approximately 12,000 bopd by the end of 2012


Actively evaluating new venture opportunities and developing a diverse portfolio of exploration and production assets


Placing



PetroNeft has agreed the terms of a conditional placing of 63,125,000new Ordinary Shares at Stg£0.43 (€0.49) per Ordinary Share (the "Placing Shares"), raising gross proceeds of approximately US$43 million (the "Placing").



The Placing is being executed in two tranches and has been arranged by Davy, Canaccord Genuity and Renaissance Capital. The first tranche of the Placing consists of a conditional placing of 34,395,050 Ordinary Shares (the ''First Tranche Placing Shares') which is conditional, inter alia, on admission of such Ordinary Shares to trading on the AIM Market of the London Stock Exchange ('AIM') and the ESM Market of the Irish Stock Exchange ('ESM'). The second tranche of the Placing consists of a conditional placing of 28,729,950 Ordinary Shares (the ''Second Tranche Placing Shares') which is conditional, inter alia, on admission of such Ordinary Shares to trading on AIM and ESM and upon receiving shareholder approval to complete the Second Tranche Placing at an extraordinary general meeting of the Company to be held on 15 November 2010 ("EGM"). A circular to convene such an EGM will be sent to shareholders shortly.



Operational Update



Production



In late August 2010, year-round oil production commenced from the Lineynoye oil field in Licence 61. The Company's field development programme was completed on time and substantially on budget. Field production has now reached around 2,000 barrels of oil per day ("bopd") from the seven wells currently producing. The four remaining wells should all be producing by early December when we expect to reach our year-end target of 4,000 bopd.



A programme of hydraulic fracture stimulation on up to nine wells will be completed by the end of the first quarter of 2011 in order to remove any damage caused by the drilling and completion process, achieve the maximum production levels and enhance longer term oil recovery.



Development is expected to continue in 2011 and beyond with 17 new production wells planned for 2011 and a similar programme in 2012. The Company is aiming to achieve a target production rate of 8,000 bopd by the end of 2011 and 12,000 bopd by the end of 2012. The development programme will be funded entirely from operating cashflows and the Macquarie debt facility.





Exploration



Licence 61 (PetroNeft 100% and Operator)



The Arbuzovskaya No. 1 well at the Arbuzovskaya (formerly Varyakhskaya) prospect located 10 kilometres east of the Lineynoye oil field was spudded on 10 October 2010. The current well depth is 626 metres where the conductor pipe has been set and cemented. Drilling will re-commence today and the reservoir objective should be reached and tested in early November.



There are three identified structures at Arbuzovskaya which contain approximately 30 million barrels of P3 potential reserves based on Ryder Scott's best estimate (P50). The No. 1 well is located at the largest of the three structures which contains 16 million barrels of P3 potential reserves. The Arbuzovskaya prospects have been selected as a priority due to their close proximity to the Lineynoye oil field where the best quality oil reservoirs have been discovered to date and where the pipeline and field facilities are located allowing for a low cost and efficient tie in of wells.



In the first half of 2011, two more rigs will be mobilised in order to drill a delineation well at the Kondrashevskoye oil field and a high impact exploration well at the Sibkrayevskaya prospect. Kondrashevskoye has the potential for further upside above the 8 million barrels of 2P reserves currently identified at this field. Potential by-passed pay has been identified at Sibkrayevskaya which Ryder Scott estimates could contain reserves of up to 44 million barrels of oil.



Licence 67 (PetroNeft 50% and Operator)



The first phase of work on Licence 67 involved a comprehensive study to re-evaluate vintage seismic and well data located on the licence and adjacent areas including the reprocessing and reinterpretation of 4,430 km of 2D seismic data and 21 vintage wells. All of the seismic data has now been reprocessed, correlation charts have been prepared and the wells have been tied to the seismic data. An initial depth map at the top of the primary Upper Jurassic J1 reservoir has also been prepared. The results of the well re-evaluation are very encouraging and indicate several zones of potential oil pay that were either not properly identified or not properly tested in the old wells.



Work to date has focussed on two potential development opportunities at Ledovoye and Cheremshanskaya. The Company calculates that just the primary objective Upper Jurassic J1 interval reserves for the two fields could be significant - Ledovoye C1+C2 of around 30 million bbls [PetroNeft net 15 million bbls] and at Cheremshanskaya C3 of around 60 million bbls [PetroNeft net 30 million bbls].



Following preliminary discussions with Ryder Scott, the Company believes it will be able to book some 2P reserves at Ledovoye at the end of 2010, but the Company will need to flow test the oil intervals in the Cheremshanskaya structure before it can recognise any 2P reserves there.



The Company plans to drill two exploration wells on Licence 67 in 2011, one at the Ledovoye oil field and one at the Cheremshanskaya prospect.





Exploration Programme



The following table summarises the Company's Exploration Programme for 2010/11 along with the targeted 2P reserve growth estimates:





Well
Licence

Targeted 2P Net Reserves*






Block 61 (Tungolsky)




Arbuzovskaya No. 1 well1
L61

16

Kondrashevskaya No. 2 well1
L61

12

Sibkrayevskaya No. 373 well1
L61

44






Block 67 (Ledovy)




Ledovoye Oil Field Seismic/well studies2
L67

15

Ledovaya No. 11 well Cretaceous2
L67

15

Cheremshanskaya No. 3 well2
L67

30






Total


132












* Million bbls net

1Source: Ryder Scott Petroleum Consultants Report, as at 1 January 2010

2 Source: Company estimates



Corporate Development



The Company continues to actively examine a number of exciting potential acquisition opportunities in the Tomsk region and Russia in general. The proceeds of the Placing will allow the Company to advance its corporate development activities.



Use of Proceeds



The proceeds of the Placing will be applied to accelerate the Company's exploration programme on Blocks 61 and 67 and strengthen its reserve base through potential material P3 to 2P upgrades and to enable the Company to pursue identified business development opportunities.

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



"We are delighted with the outcome of the Placing and the very high level of support received from both new and existing shareholders. The combination of year-round oil production and the continued development and exploration of Licences 61 and 67, provides an excellent base from which we can generate significant cash flow, target significant 2P reserve growth and take advantage of exciting potential acquisition and new venture opportunities in the Tomsk region."



Application will be made to the London Stock Exchange and the Irish Stock Exchange for the First Tranche Placing Shares to be admitted to trading on AIM and ESM, with Admission of the First Tranche Placing Shares expected to occur on 22 October 2010. Application will also be made for the Admission of the Second Tranche Placing Shares to trading on AIM and ESM, with admission of the Second Tranche Placing Shares expected on 16 November 2010, subject to the approval of the Second Tranche by the Company's shareholders at the EGM. The Placing Shares will, when issued, rank pari passu in all respects with the Existing Ordinary Shares including the right to receive dividends and other distributions declared following Admission.

ranger4

SP In confirmed uptrend now, will see more gains as investors-punters buy in ahead of appraisal campaign.:D

Mr Cawley

Have you a price target? Is it likely to fall with lack of news, in your opinion?

MrK

Comordha

I'm holding for 3 years with a target of €1. The newly appointed director seems to have started lot of rumours, especially in relation to joint ventures. There's also speculation mounting that PCI have won a drilling contract in Kurdistan.

This is a strange share, it does bad on newsflow but great on speculation and with so many ongoing operations and the mother of all gas finds it ticks along nicely at times.

ranger4

will also be holding this stock for few years, could see sp reach @0.18c-0.20c range by end Q4 this year, I hope to see 0.40c before i sell a small percentage.

Comordha

I have to hand it to the brokers on Petroneft, they were crying out for people to invest when it was around 15cent. They all said it was easily worth 50-60cent. I listened and am very happy I did. It's an incredible stock, more unreal news today with strong flow rates, I think they've hit a gusher-zone. Onwards and upwards. Think I will sell around €1 if we get there, which will mean I 8-bagged. Good luck to all PTR investors.