Reserve Update

Petroneft Resources PLC
19 February 2008



                            PetroNeft Resources plc

                 Announcement of Independently Audited Reserves


PetroNeft Resources plc ('PetroNeft' or 'the Company'), is pleased to announce a
significant increase in Reserves on Licence 61, Tomsk Oblast, Russian
Federation, following completion of a Ryder Scott Petroleum Consultants
independent reserves audit of the Licence area.



Highlights


O    81 % increase in 2P reserves to 60.6 million bbls

O    Ryder Scott report net reserves under SPE classification of:

      o   1P:      6.7  million bbls

      o   2P:     60.6  million bbls (P1+P2)

      o   3P:    350.1  million bbls (P1+P2+P3)

O    Long term test/pilot production commences

O    First oil sales achieved

O    2008 Exploration and Appraisal drilling programme progressing



Ryder Scott Reserves Report

Following the successful exploration and appraisal programme undertaken in
Licence 61 during 2007, PetroNeft's net proved and probable (2P) oil reserves as
of January 1, 2008 increased by 81% to 60.6 million barrels.  Proved (1P) oil
reserves increased to 6.7 million and proved plus probable plus possible (3P)
reserves increased to 350.1 million barrels.  A total of 3 oil fields and 26
prospects were included in the report.

PetroNeft's reserves have been revised following the recent independent reserve
appraisal conducted by Ryder Scott Petroleum Consultants in accordance with
reserve definitions approved by the Society of Petroleum Engineers (SPE) and
World Petroleum Congress.

The Russian Registered reserves for Licence 61 are also currently being updated.
It is anticipated that this process will be finished in March and that there
will be good alignment with the SPE based reserves.



Update on Production Testing

The long term test/pilot production of the Lineynoye No. 6 and No. 7 wells is
progressing as planned.  The Lineynoye No. 6 well has now been commissioned and
is currently producing at a stabilised flow rate of 226 bopd.  The Lineynoye No.
7 well is currently being hooked-up and should be commissioned in about 10 days,
with production starting.  The production tests will continue as long as winter
roads are in place to truck the oil.  The production data will assist in
planning the optimal well fracture programme to stimulate production and enhance
long-term reserve recovery from the fields


Update on Drilling Activities

The three existing drilling rigs are all being moved to the new drilling sites
for this year's planned exploration and delineation drilling programme.  The
drilling rig for the Korchegskaya Prospect is now completely moved and is being
assembled.  This will be the first well drilled, commencing in March as planned.
  Ryder Scott estimates 36 million barrels of possible reserves for this
prospect.

A truck mounted work-over rig has been contracted and is being prepared to be
moved to the Tungolskoye No. 4 well in March to continue the testing of that
suspended well.



Dennis Francis, Chief Executive Officer of PetroNeft commented:

'This reserves increase shows the major progress that we have made in appraising
Licence 61 this past year. Management has successfully made good on its IPO
promise: to monetise and add to the value of the portfolio by increasing booked
reserves, discovering new reservoirs and moving towards production as soon as
possible.

PetroNeft has not only proved a significant reserve base for development, but
also has built up a high quality inventory of prospects which offer upside
through exploration over the medium term.

We will  continue to maintain our focus on developing the existing fields and
keep on track for our targeted pipeline production in 2009, whilst remaining
open to any new opportunities which management believes would be worthy of
consideration '





For further information, contact:


Dennis Francis, CEO, PetroNeft Resources plc (Houston)
[phone]

Paul Dowling, CFO, PetroNeft Resources plc (Dublin)
[phone]

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

John Frain/Brian Garrahy, Davy
[phone]

Damien Mauvais, Natixis Bleichroeder
[phone]

Nick Elwes/Paddy Blewer/Simon Whitehead, College Hill (UK)
[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.



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.



Glossary

Proved Reserves (P1) - Proved reserves are those quantities of petroleum which,
by analysis of geological and engineering data, can be estimated with reasonable
certainty to be commercially recoverable, from a given date forward, from know
reservoirs and under current economic conditions, operating methods, and
government regulations.

Probable Reserves (P2) - Probable reserves are those unproved reserves which
analysis of geological and engineering data suggests are more likely than not to
be recoverable.  In this contest, when probabilistic methods are used, there
should be at least a 50 percent probability that the quantities actually
recovered will equal or exceed the sum of estimated proved plus probable
reserves.

Possible Reserves (P3) - Possible reserves are those unproved reserves which
analysis of geological and engineering data suggests are less likely to be
recoverable than probable reserves.  In this context, when probabilistic methods
are used, there should be at least a 10 percent probability that the quantities
actually recovered will equal or exceed the sum of estimated proved plus
probable plus possible reserves.




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