Operational Update

Petroneft Resources PLC
14 August 2007



                            PetroNeft Resources plc

                              Operational Update



PetroNeft Resources plc ('PetroNeft' or 'the Company'), 100% owner of Stimul-T,
which is the sole owner and operator of Licence 61, Tomsk Oblast, Russian
Federation, is pleased to report an oil discovery with its Lineynoye No. 7
exploration well on the West Lineynoye Prospect, based on the results of core
data and initial log interpretation.  This is the third well drilled in what has
been a successful drilling campaign this year in Licence 61.



  • Two metres of net oil pay was confirmed in a sandstone reservoir in the
    Upper Jurassic J1 interval from -2,395.5 to -2,397.5 metres subsea .  This
    confirms the oil test in the same interval in the Lineynoye No. 5 well
    drilled in the 1974.
  • The data indicates a 22 metre gross oil column in the J1 interval at this
    location and indicates that the structure is filled with oil to the spill
    point.
  • The J1 interval will now be flow tested and the results will be reported
    as soon as they are available.



Lineynoye No. 7 is the last well to be drilled in this year's drilling
programme.  All three wells have encountered hydrocarbons and confirmed the
Company's structural interpretation of the Licence area:



  • The Lineynoye No. 6 appraisal well has 11.2 metres of net oil pay and has
    been successfully tested at a stabilised flow of 100 bopd on a 1/8th inch
    choke.  This well will be put on pilot production/long term flow test this
    winter with the oil being sold to a local Tomsk refinery.  The well also
    lowered the oil water contact (owc) for the Lineynoye Field at least 10
    metres which is likely to lead to a modest reserve upgrade for the field.
  • The Tungolskoye No. 4 appraisal well has 15 metres of net oil pay based on
    the core data and independent log interpretations. This represents the best
    reservoir interval encountered of the 17 wells drilled in the block to date.
      However, the Company has not to date achieved a representative flow test
    of this interval due to mechanical problems.  The well will now be
    sidetracked to re-access and fully test the relevant reservoir interval.
    This process should take about 60 days including mobilisation of necessary
    equipment and materials.  Based on the wire line log and core data from this
    well, and the historic data from the Tungolskoye No. 1 well which tested 332
    bopd from the same interval in 1973, we are confident of a positive result.





2007/08  Exploration and Appraisal Programmes



The results of this year's drilling programme, along with the seismic programmes
undertaken over the last two years have already been taken into account in
planning next year's three well drilling programme.  This three well programme,
which is expected to commence in February/March 2008, will seek to further
delineate the newly discovered West Lineynoye Oil Field and to drill two low
risk exploration prospects in the Tungolskoye-Lineynoye oil productive fairway.
These two prospects, Korchegskaya and West Korchegskaya, are estimated to
contain about 50 million barrels of possible reserves.  These wells will be
drilled under a turnkey contract utilising the three drilling rigs currently
active or located in Licence 61. The necessary materials for these wells are
currently being moved to the Negotka staging area by river barge and will be
moved to the well locations when winter roads are in place later this year.



Development Planning



Once all of the well data has been analysed, both internally and by outside
consultants SNIIGMS and Ryder Scott, it will be used to update the current
feasibility study for field development which will then serve as a basis for
financing the field development.



The export pipeline survey from the Lineynoye and Tungolskoye fields to the
Transneft pipeline at the Raskino pumping station is currently underway.



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



'We are delighted with the results of this year's three well drilling programme.
  Not only have we further delineated the Lineynoye and Tungolskoye Oil Fields,
but we have made an exciting new oil field discovery at West Lineynoye.  While
we will need to sidetrack the Tungolskoye No. 4 well in order to get a
representative flow test, we are confident in the oil interval and anticipate a
positive result in due course. Each of these results represents a significant
step forward in the commercialisation of Licence 61 and are an important
component of PetroNeft's long term strategy



The drilling results have further enhanced our understanding of the reservoir
distribution in  Licence 61 and have already been factored into next year's
three well drilling programme in order to reduce risk.'



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]



Damien Mauvais, Natixis
[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 Siberian Oil and Gas Basin.
The base of the formation is a continuous and reliable seismic marker throughout
the basin.



Gross Oil Column - the total thickness of reservoir and non-reservoir rock above
a common oil water contact.



J1 Reservoir Interval - Stratigraphic unit 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 J1 interval is commonly made
up of the J11 and J12 sandstones which are normally of reservoir quality in the
region with sufficient porosity and permeability to store and transmit
hydrocarbons.



Net Pay - the aggregate thickness of only those parts of the reservoir which
contain and produce hydrocarbons.



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



Spill Point - The structurally lowest point in a hydrocarbon trap that can
retain hydrocarbons. Once a trap has been filled to its spill point, further
storage or retention of hydrocarbons will not occur for lack of reservoir space
within that trap. The hydrocarbons spill or leak out, and they continue to
migrate until they are trapped elsewhere.



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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