PetroNeft Resources new $2.9m convertible loan facility

PetroNeft Resources plc (LON: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, has provided a financing update.

Highlights

·      New $2.9m convertible loan facility providing greater headroom to develop value.

Loan facility

PetroNeft has entered into a convertible loan facility of US$2.9 million with a group of thirteen lenders that matures in March 2023. 

The loan facility will be used for general corporate and ongoing operational purposes and carries an interest rate of 8% above the base rate of the Bank of England. Lenders can elect at any time to convert up to 75% of the outstanding loan to shares at a conversion price of stg£0.02 in year 1 and stg£0.025 in year 2.

The funding secured by the Company will support our key operational priorities which are expected to deliver considerable news flow in the near to medium term, these priorities include:

·      Licence 67; bringing the Cheremshanskoye field on stream for year round production and completing the infield infrastructure work including the all season road. Mobilising to the Ledovoye field to carry out a work over program aimed at proving up well productivity to enable field production.  Continuing to improve our knowledge and understanding of the two fields to optimise the capital allocation model for future development plans.

·      Licence 61; continuing to improve production performance through selected low capital but high reward projects such as the current fracking program and optimisation of water flood programs at the fields. The Company is also focused on analysing ways to unlock the significant potential within the northern hub complex being the West Lineynoye and Sibkrayevskoye fields, and the large Emtorskaya prospect.

The loan is being provided by a group of thirteen investors. Five of the investors are related parties (as defined in the AIM Rules and Euronext Growth Market Rules). Details of the amounts being provided by the related parties are outlined in the table below. Accordingly, Daria Shaftelskaya and Domenic Anthony Sacca, acting as Independent Directors, 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.

Related Party LenderAmount provided US$
Natlata Partners Ltd550,000
ADM Consulting FZE(Alastair McBain)550,000
David Golder26,328
David Sturt300,482
Pavel Tetyakov118,209

David Sturt, CEO of PetroNeft Resources plc, commented:

“We are pleased with this fundraising which includes participation by new investors and demonstrates the continued support from our larger shareholders as we continue to rebuild value in the business.

This two-year facility provides additional financing head room to the Company and allows management to further focus on operations as we continue to improve the performance of our assets and deliver value to our shareholders.  Not only does this give greater security, it allows management to further focus on development and operations.”

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
Twitter
LinkedIn

More articles like this

Oil climbs to four-week high

Oil prices extended gains on Friday and were on course for a weekly gain of about 7% with an improved oil demand outlook and strong economic recoveries in China and the United States offsetting concerns about

Oil rises on US vaccine rollout

Oil prices rose on Monday on optimism over the pace of coronavirus vaccinations in the United States and after the Yemen-based Houthi movement said it fired missiles on Saudi oil sites. Still, crude prices have remained

Oil prices end higher

Oil prices ended higher on Wednesday, shaking off an earlier decline, as traders parsed U.S. government data showing a more-than-3-million-barrel decline in crude inventories, and a bigger-than-expected climb in gasoline inventories. Once traders “looked beneath the

Russia aims to raise production

Russia, the leader of the non-OPEC group in OPEC+, favors a rollover of the alliance’s oil production cuts while seeking a slight increase for itself to meet higher seasonal demand, a source with knowledge of Moscow’s

Oil is still up almost 34% this year

Oil was steady in Asian trading after an industry report pointed to shrinking U.S. crude and gasoline stockpiles as the market took a breather following a sustained slide that dragged prices below $65 a barrel. Futures

PetroNeft Resources Investor Presentation

PetroNeft Resources plc (LON:PTR) CEO David Sturt presents the latest investor presentation. PetroNeft Resources is a public company registered in Ireland established to develop oil assets in the Tomsk Oblast in Western Siberia and was admitted to the

Oil prices rise as vaccine drives

Crude oil prices rose on Thursday as vaccine rollouts bolstered the economic outlook and US fuel stocks fell sharply, although gains were capped by a surge in crude oil inventories after last month’s Texas storm. Brent

Brent rises past $70 for first time since pandemic

Brent crude futures climbed above $70 a barrel on Monday for the first time since the COVID-19 pandemic began, while U.S. crude touched its highest in more than two years, following reports of attacks on Saudi

Oil extends gains on OPEC+ supply restraint

Oil prices rose early on Friday, adding to big gains overnight after OPEC and its allies agreed to not increase supply in April as they await a more solid recovery in demand from the coronavirus pandemic.

Oil prices jump today

Oil prices rebounded more than $1 on Monday after the U.S. House of Representatives passed a huge stimulus package, although a slowdown in China’s February factory activity growth capped gains. Brent crude futures for May rose

Oil rises on positive forecasts

Oil prices rose on Tuesday, underpinned by the likely easing of COVID-19 lockdowns around the world, positive economic forecasts and lower output as U.S. supplies were slow to return after a deep freeze in Texas shut