Dublin-based oil and gas exploration company Petroneft Resources floated on the specialist IEX and AIM markets yesterday.

Petroneft, which owns an exploration and production licence in western Siberia, raised funds of $15.5 million (€12.2 million) through the joint listing.

"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," chief executive Dennis Francis said yesterday.

Mr Francis said he was delighted to receive "such a positive backing" for the company's initial public offering (IPO) which he described as "oversubscribed".

The company's main asset is its Siberian licence, which covers 4,991sq km, and contains two proven oil fields, Lineynoye and Tungolskoye. Existing "proved and probable" oil reserves in this core area are currently estimated at 33.5 million barrels, with a further 37.1 million barrels considered possible.

Twenty-five additional prospects have also been identified, which could potentially lead to further resources of 353 million barrels of oil. Petroneft's listing brings to 22 the total number of companies now trading on the IEX, which was established in April 2005.

"The decision by Petroneft, an Irish company with international operations, to list its shares on the IEX market . . . is another vote of confidence in this specialist market," said Deirdre Somers, director of listing at the Irish Stock Exchange.