Petroneft issues operations update

Exploration group Petroneft Resources today issued a positive update for its Russian operations, with construction of pipeline and productions facilities on schedule.

The IEX listed company said its preliminary results in drilling of the first of nine production wells at the Lineynoye oil field scheduled for 2010 showed it was in line with expectations.

The company is constructing a 60km export pipeline from the Lineynoye field to the Kiev-Eganskoye field, and activities required to be completed during the winter construction season, including the route clearance, field-welding of the pipeline, laying the pipe and backfilling the trench, have been finished.

The pipeline's hydro test is to take place in June, and the line is expected to be ready in the third quarter of 2010.

"The completion of winter pipeline construction represents a critical milestone in our schedule to commence year round production in the third quarter of this year. We are also delighted that the preliminary results from the first production well are in line with our expectations and look forward to the remainder of the programme with confidence and optimism," said chief executive Dennis Francis.