Financing Update

RNS Number : 0676C

Petroneft Resources PLC

17 January 2018

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

17 January 2018

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, is pleased to provide a financing update.

Highlights

·     US$2 million loan agreed with Petrogrand AB

·     Operations - Winter production from Sibkrayevskoye is getting underway

Loan facility

PetroNeft has agreed a loan facility for up to US$2 million with Swedish company Petrogrand AB ("Petrogrand"). The loan matures on 31 December 2018.  The loan facility will be used for general corporate purposes and to finance a potential drilling programme in 2018. Discussions with partners on a 2018 drilling programme are ongoing. This loan facility will provide time and space for a more long-term financing solution to be put in place.

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

Operations

Winter production from Sibkrayevskoye is getting underway now that winter roads have become available. We will update shareholders in due course on production for Q4-2017 and on the results achieved from the winter production 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, ESM Adviser and Joint Broker)	[phone]
Henry Fitzgerald-O'Connor, Canaccord Genuity Limited (Joint Broker)	[phone]
Joe Heron / Douglas Keatinge, Murray	[phone]

The information contained in this announcement has been reviewed and verified by Mr. Dennis Francis, Director and Chief Executive Officer of PetroNeft, for the purposes of the Guidance Note for Mining and Oil & Gas Companies issued by the London Stock Exchange in June 2009. Mr. Francis holds a B.S. Degree in Geophysical Engineering and a M.S. Degree in Geology from the Colorado School of Mines. He has also graduated from the Harvard University Program for Management Development. He is a member of the American Association of Petroleum Geologists and the Society of Exploration Geophysicists. He has over 40 years' experience in oil and gas exploration and development.

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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