Shares in the Dublin-listed, Russia-focused oil exploration company PetroNeft Resources rose over 37 per cent in Dublin this morning after it reported one of its wells in Siberia produced crude oil when tested.
In a statement PetroNeft said its Lineynoye 1 well delivered 271 barrels of oil a day and added this could be improved. A total of five wells are now confirmed as producers on the PetroNeft-operated License 61, the company said.
PetroNeft rose as much as €0.045 cent, or 37.5 per cent, to €0.165 cent at 11.43am in Dublin. Over the year the stock is down 64 per cent and has a market value of €31.6 million
The discovery makes PetroNeft's enterprise value of under $0.50 a barrel "look excellent value, especially when $12 million of pipeline are available to the company," Job Langbroek, analyst at Davy Stockbrokers, said in a research note.
Separately Providence Resources, the AIM and IEX listed exploration and production company said a third-party study of its Singleton Field in West Sussex in the UK suggested the volume of oil available was approximately 107 million barrels, 50 per cent higher than previous estimates.
The study were commissioned as part of a planned redevelopment of the field. In a statement Providence said since production of the field started in 1986 the field has produced 3.7 million barrels of oil, representing a recovery rate of 3.5 per cent.
On the basis of data from similar fields Providence said a recovery factor of approximately 10 per cent should be achievable. Phase one of the redevelopment of the Singleton Field will begin early next year.
Additional reporting Bloomberg
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