PetroNeft, the Dublin and London listed oil and gas company, saw its share price rise by 6 per cent on the back of successful well results on Wednesday.

It has contributed to a year-on-year production increase of 40 per cent, the company reported in an update.

PetroNeft is now producing 2,600 barrels of oil per day and targeting 4,000 by the year’s end.

The exploration company is operating in the Tomsk Oblast in Russia where it is a 50 per cent owner of two licences.

Its L-10 horizontal drill at West Lineynoye has been brought online at a sustained rate of 230 barrels per day, while its well at Tungolskoye continues to produce a sustained 500 barrels a day.

“The very good result of L-10, both from a drilling production performance perspective, is a significant step to tying in these close to existing infrastructure projects in a highly cost effective manner,” the company said.

Chief executive Dennis Francis said the result demonstrated the potential for materially enhanced flow rates from horizontal production wells.

“With proper planning we can drill similar wells in a cost effective manner with a standard Russian exploration drilling rig,” he said.

“This significantly increases our inventory of ready to drill wells in today’s low oil price market.”