PetroNeft Resources, owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, provides an update on its operations.

Highlights: • Pipeline construction on schedule for completion in April 2010 • Drilling rig onsite and rig-up underway, first of nine development well program to spud in April • Equipment procurement and mobilisation ongoing as planned • Appointment of new Vice President of Business Development and Operations

Pipeline The survey, design and preparatory work on the new pipeline route from Lineynoye to Kiev-Eganskoye has been completed. Pipeline construction activities will commence on schedule in early February and is expected to be completed during April 2010. Final hydro-pressure testing of the line is scheduled for June 2010.

Drilling rig and field facilities The drilling rig has been successfully mobilised to the Lineynoye Pad A site and rig-up operations are underway. Rig-up and commissioning is scheduled to take approximately 8 weeks with spudding of the first well of the 2010 nine well development drilling program anticipated in early April 2010.

Various equipment items required for the field facilities at Lineynoye are also being delivered to the field, in time for the commencement of construction in March 2010.

Senior management appointment On 1 January 2010 Karl D. Johnson was appointed as Vice-President of Business Development and Operations. Karl comes to PetroNeft after a 27 year career with Marathon Oil Company. Karl has a strong background in Business Development, Operations and Economics. He also has extensive Russian experience having lived and worked in both Moscow and Yuzhno-Sakhalinsk. He has a BS degree in Petroleum Engineering from Marietta College, Marietta, Ohio, USA and an MBA from Rice University, Houston, Texas, USA.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc commented, 'We are very pleased to be off to such a good start in 2010. All aspects of the project are on or ahead of schedule which is a credit to our staff and contractors in Tomsk. I am looking forward to a transformational year for PetroNeft with the commencement of year-round production in Q3 2010 and meeting our production target of approximately 4,000 bopd by the end of 2010.

We are delighted to welcome Karl Johnson to PetroNeft. His extensive experience in Russian Business Development and Operations will greatly assist the Company in its ambitious growth plans.'

Tags: PetroNeft Resources plc