Petroneft Resources lost 37.6 per cent to 9p on Friday, its biggest drop on record, after revealing its production levels had slumped in recent weeks.

The Russia-focused explorer said its current production levels were down to 2,300 barrels per day compared with its yearly highs of 3,000.

The company said the decline was due to problems with its fracture stimulation programmes at a number of wells on its producing Lineynoye field.

It said studies to determine the cause of the problem would take at least six months with work on the field postponed as a result and focus shifted to other – as yet unproductive – sites.

In contrast, oil explorer BowLeven soared 62.2 per cent to 120p on news of a potential bid from Dragon Oil.

Dragon, which is controlled by Dubai’s state-owned Emirates National Oil Company, confirmed during mid-morning trading that it was in the initial stages of an offer for BowLeven.

It now has until March 16 to make clear its intentions. Dragon gained 0.6 per cent to 547p.

Bulgarian property investor Orchid Developments fell another 14.9 per cent to 5p after an offer for the company by an unnamed bidder fell through.

Orchid had fallen 37.2 per cent on Valentine’s Day on speculation about the takeover deal that had involved an offer below the prevailing share price.

Harvey Nash edged up 2.7 per cent to 67.4p after it said full-year results to come in ahead of expectation and said it planned to increase its final dividend by 10 per cent.

The company also confirmed that it intends to keep its global headquarters in London.

However, the services company also noted that if the current market gloom continued in the fourth-quarter, full-year profit would come in lower than the previous year – primarily due to the subdued executive appointment market.

Shore Capital argued that Harvey Nash’s shares were inexpensive and increased its target price to 7.5p from 7p with a ‘buy’ recommendation.

The broker was optimistic that Harvey Nash had “reached the bottom of the downgrade cycle... reflecting assumptions of a traditional cyclical downturn and that in all likelihood the risk to our full-year 2013 forecast estimates have now moved to the upside”.

Turkey- and Saudi Arabia-focused Kefi Minerals fell 6.7 per cent to 3.2p after raising £1.85m through a placement of 61.7m shares at 3p per share – below the prevailing price.

Leni Gas & Oil crept up 3.5 per cent to 1.2p as drilling at its Eugene Island Field in the US Gulf of Mexico commenced and Frontera Resources received a 9.2 per cent boost to 1¼p after its chairman and chief executive bought 1.2m shares at market prices.

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