Petroneft Resources Share Discussion Threads

[dbarr0n] 29/9/2014 14:28

Gross profit 2011 $ 3,433,077 - 2012 $ 4,446,804 - 2013 $ 5,135,158 Overheads will remain much the same so more wells dilute the running costs per well...

[rcturner2] 29/9/2014 14:05

Profitable in what sense? Petroneft has never declared a profit.

They have a mythically breakeven production level which they have never reached.

[dbarr0n] 29/9/2014 13:44

sean ..
The wells at pad 1 Lineynoye and the wells at Arbuzovskoye are profitable, they would not be drilling 3 - 5 more wells there if not. Granted none of us would say no to higher flow rates, maybe the use of Horizontal wells will improve the rate of return.
As for getting a decent price for the oil, they have done that..

[seangwhite] 29/9/2014 12:40

Db

The figures for 2p of $0.75 are low but PTR can only get this up by actually showing P2 can be lifted out of the ground and sold for decent money.To date they have failed to do that and no rerating will come until they change this or someone makes a move to take control.
The relatively large daily trades (up to 2% of shares issued)usually reported late over recent weeks could be the start of some entity taking a bite at the latter option.

As a holder for a few years now I for one do not mind which action lifts the PTR SP!

VGLTA

[flyingbull] 28/9/2014 23:42

The October oil stock competitions are now open for entries....

[dbarr0n] 28/9/2014 23:29

ravin ..
Petronefts reserves, production and infrastructure are presently valued by the market at $ 54 million or $ .75 per 2P barrel.
Surely this valuation is too low considering there is going to be $ 45 million spent by oil India ( Petroneft to benefit on 50% of this ) on upping production, infrastructure and possibly increasing reserves..

[ravin146] 28/9/2014 21:07

Valuations are based on many assumptions. Davy hold interest here and prob at such a high average price I personally can't look at any of their research. Independent reviews etc are better off.

[dbarr0n] 26/9/2014 20:23

Petroneft Interim results - activity re-starts

09:10 26 Sep 2014 By Davy Research

Operational activity re-starts with two wells underway

The Tungolskoye 5 well is now at 2,500 metres and is drilling ahead. The well will be cored and tested and will take up to 60 days to complete in its entirety (including the horizontal section). The horizontal section could, if successful, be a breakthrough for the Licence 61 investment story as it would mean that the well delivers flow rates significantly higher than individual wells in either the Linnenoye or Arbuzovskoye fields. This will transform the outlook for oil production from the licence. All going to plan, the Tungolskoye field will be developed in 2015. Separately, a second crew has mobilised to drill the first of three extra Arbuzovskoye development wells. The first of these, designated Arbuzovskoye 106, has already started. When the current Tungolskoye 5 well is complete, the Sibrayevskoye well will commence in Q1 2015 following assembly of the rig which has already been moved to the field area.

In addition to the re-start of drilling operations, approval has been received for 1,000 sq km of 2D seismic activity. In order to acquire better control, the seismic shoot will cover the Sibrayevskaya and Ementorskaya accumulations but also three other good targets in the northern part of the block. This crew has been mobilised and seismic will be procured and processed in 2015.

No surprises in numbers

The production rate from the existing developed projects on Licence 61 is 2,163 barrels of oil per day (our 2014 average is 2,200 b/d). This is much as expected given the lack of drilling activity and the natural decline in reservoir pressure. The produced oil generated revenue of $17.5m, selling at an average of $44.79 per barrel – the domestic price of oil in Russia. The fiscal results in the period were based on a full 100% equity stake in Licence 61 (which will not be the case in the second half of the year). With the deal completing officially just after the half year, the group will now record Licence 61 production at 50% of the gross production rate using the equity method. Following the farm-out of the licence to OIL, the group is now completely debt-free and will be carried on the next $45m of gross exploration expenditure. All debt in the group is now extinguished.

Valuation unchanged

There is nothing in the numbers to change our view on the underlying valuation. Taking into account the reduction in gross equity and the recovery of past costs, we see the core group value at 11.3p per share; factoring in some upside, this climbs to 14.2p per share

[ravin146] 26/9/2014 19:12

Someone is certainly stake building and taking a punt? Hope it pays off for them too or boy are they going to regret it. Gd wkend

[spudders] 26/9/2014 17:54

Another 15m+ reported late. Have a good week end all 💰💰💰

[steelwatch] 26/9/2014 17:18

ravin - Goodbody not listed as a major holder.

J&E Davy - 8.37% - 59,165,784

Mostly, if not all, clients' holdings in nominee accounts I would have thought.

[ravin146] 26/9/2014 17:13

Davy and good body own how much ptr anyone?

[crudde99] 26/9/2014 15:15

Goodbody's $o.13 cent share price target even seems ambitious at the moment given the lack luster share price movements of late... Lets hope for more exciting Co. updates and share price appreciation in the near future.. GLA.

[woodpecker25] 26/9/2014 14:03

Great to be able to draw a line under recent corporate activity and to now focus on operational activity.

Lots going on operationally so hopefully ongoing regular updates will see some (upwards) momentum in the share price over the course of the next 12-18 months.

GLA

[steelwatch] 26/9/2014 12:18

DAVY VIEW

Petroneft’s interim results show that the group has achieved one of its primary aims, which was to rekindle operational activity on the ground in Western Siberia. The OIL (Oil India Limited) deal can be thanked for this; even allowing for a reduced equity position, shareholders are now better off.



PetroNeft H1 results – production at 2,163bopd

Petroneft released its Interim results this morning for the period to the end of June, which showed H1 production averaged 2,163bopd (-12% yoy) in the period while the average oil price achieved in the period was $44.79 ($42.48 previously). It has completed the farmout of Licence 61 to Oil India and used the proceeds to clear the outstanding debt. Revenues of $17.5m compared to $18.6m in the prior period, while the loss for the period has narrowed from $10.6m to $2.7m

Under the JV agreed in July 2014 Oil India Limited and Petroneft will fund the Tungolkoye No. 5 delineation well which was spudded in August this year, while further development wells will be drilled at Arbuzovskoye Pad 1. The Sibkrayevskoye No. 373 well will be drilled following completion of the Tungolskoye No. 5 well.

Current production is pegged at 2,000 bopd, down from 2,300 bopd at year end and 2,400 bopd in March. Key for Petroneft going forward will be its ability to increase production above 2,300 bopd from 2,163 bopd currently.

[dbarr0n] 26/9/2014 11:26

Robin... Unfortunately the drill bit will take a little longer LOL.
Should be coring and testing this weekend ...

[rockin robin] 26/9/2014 10:02

Usain does 100 metres in 9.58s...

[dbarr0n] 26/9/2014 09:48

ravin .... Yes I am very sure...

They say they are at 2500 mtrs, Reservoir is between 2600 to 2640 mtrs so not much more to go..

[oilretire] 26/9/2014 08:26

Since you asked, I don't agree FWIW

[ravin146] 26/9/2014 08:21

near future can be anything (are you guys sure at the agm they mentioned vertical results?)...it is the same unclear RNS's as usual. Any one agree?!

[oilretire] 26/9/2014 07:52

Pretty much on schedule I would have thought - It wasn't due to spud until week commencing 25th Aug - & they now confirm "was spudded at the end of August 2014". I dunno, what ~35-40 days out of the 60 to "core, test and log the J-1 reservoir in the vertical hole"?

Near future could mean next week or next......

[ravin146] 26/9/2014 07:37

sorry have i just gone back in time...this is not new news... an update in the 'near future' does not sound like vertical results next week!

[oilretire] 26/9/2014 07:26

Yip, good to see concurrent drilling ops on two wells ongoing & a crew on the ground in 61 - The seismic crew has already mobilised to the field for surveying and line clearing operations.

[rockin robin] 26/9/2014 07:20

First floor springboard - half turn slight star-jump and average landing. 6/10.Another three levels to come...