Petroneft Resources released an operations update for its operations in the Tomsk region of Western Siberia. The update indicates that average daily production has declined slightly from the 2,500 bopd it reported in September 2013 as some wells require work overs which can only be completed once winter roads become available. It also stated that it has recommenced drilling operations with the spudding of the Lineynoye 9 delineation well. The drilling contractor has agreed to defer payment until after the completion the company’s debt refinancing. Petroneft did not report progress with the completion of the debt re-financing. <p>
The update indicates the ongoing operational headwinds that Petroneft faces. Its capital budget is restricted due to the debt repayment to Macquarie Bank. This in turn affects the drilling of new production capacity. The company’s intention is to refinance the Macquarie loan either through a refinancing arrangement of a farmout, or both. The completion of such an arrangement is crucial in ensuring that it operates optimally and exploit its significant resource base (2C at more than 100mmbls).
<p><h5>Muna Muleya</h5>
Disclaimer: www.merrion-capital.com/disclaimer
Merrion Stockbrokers Limited (registration no. 307878)
is a limited liability company whose registered office is at
Block C, The Sweepstakes Centre, Ballsbridge, Dublin 4, Ireland.