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Regulatory Story
Company Petroneft Resources PLC
TIDM PTR
Headline Financing Update
Released 07:00 21-Mar-2019
Number 5070T07

RNS Number : 5070T
Petroneft Resources PLC
21 March 2019
 

 

21 March 2019

 

PetroNeft Resources plc

("PetroNeft" or the "Group" or the "Company")

 

Financing Update

 

PetroNeft (AIM: PTR) an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67, provides a financing update.

 

Loan facility

In January 2018 PetroNeft agreed a loan facility for up to US$2 million with Swedish company Petrogrand AB ("Petrogrand") secured on the assets of PetroNeft.  The loan facility was fully drawn down and was used to finance the drilling of the successful C-4 well in 2018 and for general corporate purposes.  The parties have agreed an increase in the facility by US$500,000 to US$2.5 million and a revised maturity date of 15 December 2019 (which may be extended by mutual consent of the parties). The revised terms include the potential entitlement to bonus payments of US$2.5 million per Licence if either or both Licence 61 or Licence 67 are sold before 31 December 2020.

 

As previously disclosed, due to Petrogrand being an associate (as defined in the AIM Rules and Euronext Growth Market Rules) of Mr Maxim Korobov, a PetroNeft director, the loan facility is considered to be a related party transaction under the AIM Rules and Euronext Growth Market Rules.  The directors of the Company, other than Maxim Korobov, having consulted the Company's nominated advisor and Euronext Growth Market adviser, consider the terms of the loan facility to be fair and reasonable insofar as the Company's shareholders are concerned.

 

For further information, contact:

Karl Johnson, Interim CEO, PetroNeft Resources plc      

+1 713 988 2500

John Frain/Brian Garrahy, Davy (NOMAD, ESM Adviser and Joint Broker)                               

+353 1 679 6363

Henry Fitzgerald-O'Connor, Canaccord Genuity Limited (Joint Broker)  

+44 207 523 8000

Joe Heron / Douglas Keatinge, Murray

+353 1 498 0300

 

 

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation and is disclosed in accordance with the Issuer's obligations under Article 17 of the Market Abuse Regulations.

 


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