Drilling Update

Petroneft Resources PLC
24 April 2007


                            PetroNeft Resources plc

                               Drilling Update


PetroNeft Resources plc ('PetroNeft' or 'the Company'), owner and operator of
Licence 61, Tomsk Oblast, Russian Federation, through wholly owned Russian
subsidiary Stimul-T, is pleased to announce the initial results of the first
modern delineation well at the Lineynoye Oil Field in Western Siberia and
progress on two further wells on the Licence.


Lineynoye No.6 well


The Lineynoye Oil Field is located in Licence 61 in the Tomsk Region of the
prolific Western Siberian Oil and Gas Basin. Discovered in the 1972, Ryder Scott
petroleum consultants estimate 2P reserves of 15.6 million bbls of oil.
PetroNeft's operational strategy is to utilise modern technology and techniques
to fully delineate the field, confirm reservoir details, and optimise a field
development plan as a first step towards production.


Today's news is the first operational update post the first well spud in March
2007 and whilst very positive, should be seen as a successful step in a process
which will eventually lead to production.



  • The Lineynoye No. 6 well spudded on 4 March 2007 and has been drilled to a
    Target Depth of -2,650 metres subsea.


  • Oil was confirmed within the J1 reservoir interval in 2 stratigraphic
    units, J11 and J12.


  • The J1 oil reservoir interval and lowermost part of the Bazhenov Formation
    were cored from, -2,401.3 meters to -2,436.1 metres subsea, with 98.9% core
    recovery. These cores are currently being analysed in detail.


  • The primary hydrocarbon interval, the J12 sandstone, from -2,419.3 metres
    to -2,430.5 metres subsea, contains 11.2 meters of continuous net pay with
    14% to 16% porosity and hydrocarbon saturations of 75% to 84%.


  • The secondary hydrocarbon interval the J11 sandstone is 2 metres thick
    with hydrocarbon shows but appears tight and non-productive at this location
    based on the initial log evaluation.


  • There is excellent stratigraphic correlation between the reservoir
    intervals in L-6 and discovery well L-1, which was drilled in 1972.


  • The base of the Bazhenov Formation is at -2,410.3 metres subsea in the
    well, which is consistent with the seismic interpretation prior to drilling
    the well. (the well intercept is 190 metres southwest of the surface
    location)


  • The data indicates that the oil water contact is at or below -2,430.5
    metres subsea in the lower part of the J12 sandstone, which is at least 10
    meters lower than the previous conditional oil water contact for the field.


  • Geophysical logging and initial petrophysical analysis has now been
    completed and preparations are underway to carry out flow tests on the well
    to determine its productive capacity. Results will be published as soon as
    they are available.



Other Activities



The Tungolskoye No. 4 drilling rig has now been assembled and final hook-up is
underway. It is anticipated that this well will be spudded by mid May.  This
well is designed to confirm the reservoir data of the 1973 discovery and provide
further input into a Final Development Feasibility Study, expected to be
completed in the 3rd/4th quarter of 2007.  Ryder Scott petroleum consultants
estimate 2P reserves of 17.9 million bbls of oil for the Tungolskoye Oil Field.



The Lineynoye No. 7 site has required additional piles to be driven to firm up
the foundation for the drilling rig and it is anticipated that this high impact
exploration well will now spud in June.



The drilling results from this well and the Tungolskoye No. 4 and Lineynoye No.
7 wells will be used to update the Feasibility Study for the Development of the
Lineynoye and Tungolskoye fields, which is expected to be completed later in
2007. The Company will also use data gained from this season's drilling and
seismic programme to further evaluate the numerous prospects on License 61.
There are several exploration and development prospects currently under full
study which will develop into a drilling programme for the winter of 2007/2008.



Dennis Francis, Chief Executive Officer of PetroNeft Resources plc commented:



'We are delighted with the initial results of the Lineynoye No. 6 well.  Not
only have we confirmed the presence of significant and continuous reservoir
sandstones in the J12 interval, but we have also lowered the oil water contact
for the field which, when integrated with the new seismic data acquired this
winter, could increase the size of the field both geographically and in terms of
reserves.



We now look forward to the flow test results from Lineynoye No. 6 and the
drilling of the remaining two wells in this years evaluation programme.'


For further information, contact:


Dennis Francis, CEO, PetroNeft Resources plc
[phone]


Desmond Burke, Director Investor Relations, PetroNeft Resources plc
[phone]


John Frain/Brian Garrahy, Davy
[phone]


Nick Elwes/Paddy Blewer, College Hill
[phone]


The information contained in this announcement has been reviewed and verified by
Mr. Dennis Francis, Director and Chief Executive Officer of PetroNeft, for the
purposes of the Guidance Note for Mining, Oil and Gas Companies issued by the
London Stock Exchange in March 2006.  Mr. Francis holds a B.S. Degree in
Geophysical Engineering and a M.S. Degree in Geology from the Colorado School of
Mines.  He has also graduated from the Harvard University Program for Management
Development.  He is a member of the American Association of Petroleum Geologists
and the Society of Exploration Geophysicists.  He has over 34 years experience
in oil and gas exploration and development.



Glossary of Key Technical Terms



Bazhenov Formation - Organic rich shale of Upper Jurassic age that is both a
major source rock for oil and cap rock in the West Siberia Oil and Gas Basin.
The base of the formation is a continuous and reliable seismic marker throughout
the basin.



J11 and J12 Sandstones - Stratigraphic units in the top part of the Vasyugan
Formation of Upper Jurassic age in the West Siberian Basin.  The Vasugan
Formation underlies the Bazhenov Formation and the J11 and J12 sandstones are
normally of reservoir quality in the region with sufficient porosity and
permeability to store and transmit hydrocarbons.



Stratigraphic - refers to the sequence arrangement of layered (stratified) rocks
based on the law of superposition, which states that in a normal sequence of
rock layers the youngest is on top and the oldest on the bottom.  Stratigraphic
correlation is the correlation of stratified rocks between locations based of
the characteristics of the layers.



Oil Water Contact - A bounding surface in a reservoir above which predominately
oil occurs and below which predominately water occurs.



Forward Looking Statements



This announcement contains forward-looking statements. These statements relate
to the Company's future prospects, developments and business strategies.
Forward-looking statements are identified by their use of terms and phrases such
as 'believe', 'could', 'envisage', 'potential' 'estimate', 'expect', 'may', '
will' or the negative of those, variations or comparable expressions, including
references to assumptions.



The forward-looking statements in this announcement are based on current
expectations and are subject to risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by those
statements. These forward-looking statements speak only as at the date of this
announcement.





                                      End




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