PetroNeft Resources first-half loss narrows to $2.7m

PetroNeft Resources has reported a narrower first-half loss despite a decrease in revenues to $17.5 million.

The company posted a net loss after tax of $2.7 million for the six months to the end of June. This was a significant improvement on the loss of $10.5 million reported during the same period last year.

Production in the six months to 30 June fell by a 12 per cent compared to the same period in 2013. The decrease was as a result of natural decline and the fact that no new production wells have been drilled since February 2013.

PetroNeft chairman David Golder said the first half of the year was a turning point for the company.

“We agreed the farmout with Oil India Limited allowing us to clear all our debts and to re-start the development of Licence 61. Since then we have agreed a work programme on Licence 61 with our new partner and recommenced drilling.”

Earlier this year, PetroNeft successfully completed its Licence 61 farmout in the Tomsk Oblast of Western Siberia out to Oil India.