Interim Results

Petroneft Resources PLC
23 October 2006



                            PetroNeft Resources plc

          Interim Results for the six month period ended 30 June 2006

PetroNeft Resources plc ('PetroNeft' or 'the Company'), owner and operator of
Licence 61, Tomsk Oblast, Russian Federation is pleased to report its half year
results for the six month period ended 30 June 2006.  This is the first
communication to shareholders as a publicly traded company.

Highlights

•  Completion of project to reprocess and reinterpret all previous 2D
   seismic (2,654 line kms) and well log (14 wells) data.

•  Acquisition and interpretation of 515 line kms of new high resolution
   2D seismic data.

•  Revised Competent Persons' Report by Ryder Scott establishes Proved
   and Probable (P1 + P2) reserves at 33.5 million bbls in two know oil fields,
   Lineynoye and Tungolskoye.

•  Possible (P3) reserves estimated by Ryder Scott at 290 million bbls in
   20 prospects.

•  All drilling and seismic contracts in place for 2006/2007 winter season.  
   Three wells will be drilled, one delineation well each on the existing
   oil fields and one exploration well on the high potential West Lineynoye
   Prospect.

•  Successfully raised US$ 23.5 million by way of two private placings.

•  Admission to AIM and IEX Markets completed on 27 September 2006.


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

'Operationally it has been a busy year with many significant accomplishments
highlighted by the Company's admission to the AIM and IEX Markets. We are
delighted to have received such positive backing from the capital markets for
our oversubscribed equity fundraising.  These funds will be used to execute a
three well operational programme designed to prove up our reserves base and take
the first step towards production.

Tomsk Oblast is a world class petroleum province, with high quality local
personnel and infrastructure in place on the ground.  We firmly believe that our
unique combination of experienced international management, top quality local
operational staff and supportive shareholders provides us with a strong base for
a successful future.'


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.


Chairman's Statement

It has been 18 months since the concept of PetroNeft Resources plc was developed
and started to become a reality.  Now the company is fully structured and funded
for the 2006/2007 work programme, has a clearly defined path to production from
its two proven oilfields, has an exploration schedule to expand the reserve
base, and has been admitted to the London AIM Market and Irish IEX Market.

The basis for the success of any company are excellent projects, outstanding
staff and the ability to efficiently finance and execute its activities to
provide value for shareholders.  These are now in place at PetroNeft and we can
look forward to an exciting future as we develop the company's assets.

Operations - Licence 61, Tomsk Oblast, Russian Federation

PetroNeft Resources plc, through its wholly owned Russian subsidiary Stimul-T,
holds 100% interest in an exploration and production licence ('Licence 61') in
the Tomsk Oblast in Western Siberia.  Licence 61 covers an area of 4,991 sq.
kms., equivalent in size to approximately 24 UK North Sea blocks.  Licence 61
contains two proven oil fields, Lineynoye and Tungolskoye, that were discovered
by a State Exploration Enterprise in the early 1970s.  The Company views Licence
61 as a 'Core Area', with oil production potential for a long period of time
from both proven oil fields and other identified exploration prospects.

Since acquiring Licence 61 the Company has reprocessed and reinterpreted 2,650
line kms of previous 2D seismic data using modern technology.  In addition the
well logs from 14 previous wells drilled on Licence 61 have been digitised and
reinterpreted.  The Company also acquired a further 515 line kms of 2D seismic
data in the winter season 2005/2006.  All of this new, reprocessed and
reinterpreted data was used by Ryder Scott Company Petroleum Consultants as the
basis for their reserve evaluation of Licence 61.

Bringing all of the previous data on Licence 61 together into a cohesive and
comprehensive package, followed by, the acquisition and integration of new
seismic data, has defined a clear programme of work into the future. This
programme is designed to achieve both early production and the expansion of
recoverable reserves through exploration.

The work programme for the winter season of 2006/2007 has already commenced.  A
new 500 line km 2D seismic survey is underway.  The mobilisation of two drilling
rigs began in February.  Construction is underway to allow the drilling of a
delineation well on the Lineynoye Oil Field beginning in January 2007.  A second
well, on the Tungolskoye Oil Field, will commence in February, and a third well,
on the high potential West Lineynoye Prospect, estimated to contain 67 million
bbls of oil, will begin in May/June 2007.  A full Production Feasibility Study
has also commenced and will be completed in July 2007, when a decision to
sanction the development project will be made.

In addition to its activities to commercialise the existing discoveries on
Licence 61, the drilling of the West Lineynoye Prospect also gives the Company a
relatively low risk opportunity to triple its proved and probable reserve base
from 33.5 million barrels to approximately 100 million barrels of oil.  The
amount of leverage that this one well, drilled on the first of more than twenty
seismically identified structures with significant hydrocarbon potential on
Licence 61, could have on the Company's reserve base is rare for the industry.
It further illustrates how eventful, and hopefully successful, the year ahead
will be for PetroNeft.

While the Company's focus remains on the development of Licence 61, we continue
to review other assets and projects that could enhance the Company's reserve
base and operations.

Admission to AIM & IEX markets

As a private company prior to the recent placing and admission to trading on the
AIM and IEX markets, PetroNeft raised a total of US$8 million.  An additional
US$15.5 million was raised at admission, which has put the company on a sound
financial footing and provided funding for the next year of operations.  It has
transformed the Company into one that has a strong institutional shareholder
base and sets the framework on which the future financing of the Company will be
organised.

Outlook

The first 18 months of our company's life has been an exciting time and the next
12 months promises to be equally exciting. By July of 2007 it is hoped that the
company will be able to take the decision to begin field and infrastructure
development, leading to production in 2008.  Taking an exploration asset like
ours to start of production is not an easy task and requires considerable
expertise, hard work and team effort to do well.  The company is fortunate to
have assembled an experienced management team that has successfully been though
this process many times both inside and outside of Russia.

I would like to thank shareholders for their support of the company to date and
look forward to reporting on our progress over the coming months and years.



G. David Golder
Chairman
23 October 2006



Annual Report and notice of AGM

The Company has sent its Annual Report, incorporating a notice of AGM, to
shareholders. The AGM is convened to be held at Herbert Hotel, Dublin 4, Ireland
at 11.00 am on Friday 10 November 2006.

Pursuant to Rule 20 of the AIM and IEX Rules, a copy of the Annual Report is
available for inspection, for a period of at least one month from the date of
this announcement, at www.petroneft.com.



Consolidated Income Statement
Interim to 30 June 2006                                                 (unaudited)             (audited)
                                                                        6 Months to          Period ended
                                                                            30 June           31 December
                                                                               2006                  2005
                                                                                US$                   US$

Turnover                                                                      25,262                   -

Administrative expenses                                                    (544,168)           (241,331)

Operating Loss                                                             (518,906)           (241,331)


Interest payable and similar charges                                        (13,720)            (19,083)

Retained loss for the period                                               (532,626)           (260,414)

Loss per share
Basic                                                                       (0.49 c)            (0.29 c)



Consolidated Balance Sheet
As at 30 June 2006                                                       (unaudited)              (audited)
(unaudited)                                                                    As at                 As at
                                                                             30 June            31 December
                                                                                2006                   2005
                                                                                 US$                    US$
Non-Current assets
Property, plant and equipment                                                 263,997               169,937
Other intangible assets                                                     8,334,053             6,093,657

                                                                            8,598,049             6,263,594

Current Assets
Trade and other receivables                                                 1,980,116               451,323
Cash and cash equivalents                                                   2,836,407               256,208

                                                                            4,816,523               707,531


Total Assets                                                               13,414,572             6,971,125

Equity and Liabilities

Capital and Reserves
Called up share capital                                                     1,605,845             1,052,260
Share premium account                                                      12,137,363             4,861,880
Profit and loss account                                                     (793,040)             (260,414)


Equity attributable to equity holders of the parent                        12,950,169             5,653,726

Current Liabilities
Trade and other payables                                                      464,403             1,317,399


Total Liabilities                                                             464,403             1,317,399

Total Equity and Liabilities                                               13,414,572             6,971,125



Cash Flow Statement
Interim to 30 June 2006                                                      (unaudited)             (audited)
                                                                             6 Months to          Period ended
                                                                                 30 June           31 December
                                                                                    2006                  2005
                                                                                     US$                   US$


Net loss before interest and income tax                                        (518,906)             (241,331)

Adjustments for:
Depreciation for - Property, plant and equipment                                   5,451                   910


Operating profit before working capital changes                                (513,455)             (240,421)

Increase in trade receivables                                                (1,528,793)             (451,323)
(Decrease)/Increase in trade payables                                          (852,996)             1,317,399

Cash generated from operations                                               (2,895,243)               625,655

Interest paid                                                                   (13,720)              (19,083)

Net cash flow from operating activities                                      (2,908,963)               606,572

Investing activities
Purchase of Property, plant and equipment                                       (99,510)             (170,847)
Purchase of other intangible assets                                          (2,240,396)           (6,093,657)

Net cash used in investing activities                                        (2,339,906)           (6,264,504)

Cash flows from financing activities

Proceeds from issue of share capital                                           7,829,069             5,914,140

Net cash received from financing activities                                    7,829,069             5,914,140

Net increase in cash and cash equivalents                                      2,580,199               256,208

Cash and Cash equivalents at the beginning of the period                         256,208

Cash and Cash equivalents at the end of the period                             2,836,407               256,208



Notes to the Interim Statement

•  The results for the six-month period ended 30 June 2006 are not
   audited nor reviewed.

•  The financial information has been prepared on a consistent basis and using 
   the same accounting policies as the audited financial statements for
   the year ended 31 December 2005.


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



23 October 2006




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