Farmout Update

RNS Number : 9517K

Petroneft Resources PLC

30 June 2014

 

30 June 2014

PetroNeft Resources plc

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

Update on Licence 61 Farmout

PetroNeft (AIM: PTR) an oil & gas exploration and production company operating in the Tomsk Oblast, Russian Federation, is pleased to provide an update on the Licence 61 Farmout to Oil India Limited.

·     All Russian Regulatory Approvals received

·     Completion of transaction expected in the coming days

·     All debt to be repaid

·     Drilling to re-commence at Licence 61

On 30 June 2014 Russian Regulatory Approval was granted in respect of the Licence 61 Farmout. Formal completion of the transaction and receipt of funds is expected in the coming days, with all debt due to Macquarie and Arawak repaid from the initial proceeds of US$35 million due at completion.

We expect to commence drilling at Tungolskoye in mid-July. The T-5 well will be the first horizontal well drilled by the Company and is expected to take approximately 60 days to drill.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented:

"I'm delighted to confirm that all of the conditions precedent on the Licence 61 Farmout are now fully satisfied and I look forward to formally confirming to shareholders that the transaction has been completed and all funds received.

We will re-commence drilling at Licence 61 shortly and I look forward to updating shareholders with the results of this exciting programme."

For further information, contact:

Dennis Francis, CEO, PetroNeft Resources plc	[phone]
Paul Dowling, CFO, PetroNeft Resources plc	[phone]
John Frain/Brian Garrahy, Davy (NOMAD and Joint Broker)	[phone]
Henry Fitzgerald-O'Connor, Canaccord Genuity Limited (Joint Broker)	[phone]
Martin Jackson/Shabnam Bashir, Citigate Dewe Rogerson	[phone]
Joe Murray/Joe Heron, Murray Consultants	[phone]

 

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