Petroneft Resources PLC Licence 67 Financing and Operational Update (4651I)
14 Diciembre 2020 - 1:00AM
UK Regulatory
TIDMPTR
RNS Number : 4651I
Petroneft Resources PLC
14 December 2020
PetroNeft Resources plc
14(th) December 2020
PetroNeft Resources plc ('PetroNeft' or 'the Company')
Licence 67 Financing and Operational 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 the
following financing and operational update:
Highlights
-- Strategic step forward on Licence 67 towards year-round
production and development of Cheremshanskoye field.
-- Offtake contract signed with Alexandrovskoye Oil Refinery
("AOR") that includes circa $1M of advance payment against future
oil shipment from the C4 well on the Cheremshanskoye field to cover
infrastructure development on Licence 67.
-- Contract awarded to Kedr LLC (local construction company in
Tomsk) to cover the construction of a 6.5 km all weather road
connecting the C4 well to the nearest all season road thereby
enabling year round production from early 2021.
Following successful completion of the C4 extended well test at
the Cheremshanskoye field on Licence 67 earlier this year, a
non-binding Heads of Terms Agreement was executed between the owner
and operator of Licence 67, LLC Lineynoye (50% owned by Petroneft
Resources) and AOR to finance the cost of constructing an
all-season road to connect the C4 well with the local all season
road network up to a maximum of RUR 75M (approximately $1 million).
Following signing of the Heads of Terms, an offtake contract has
now been signed reflecting the same terms as in the original Heads
of Terms Agreement. The advance payment under the contract will
cover the entire costs of the road construction.
AOR is a company located at Alexandrovskoye town in the
north-western part of the Tomsk region located 230 km from the
Cheremshanskoye oil field. In 2020 AOR purchased all the oil
produced from the C4 well during the extended well test at
competitive market rates.
Simultaneously with signing the offtake agreement, the contract
to construct the all-weather road was awarded to a Kedr LLC (a
local construction company) to cover the construction of both the
all-weather road which will connect the C4 well to existing
infrastructure and a winter road which will provide more immediate
access. Construction work will commence imminently and is expected
to be completed by the end of Q1 2021.
Production will re-commence from the C4 well as soon as the
winter road is in place. Work on this winter road will start
immediately with completion expected to be mid-January 2021.
The quality of the all-weather road will ensure all-season
access by oil trucks, drilling/workover rigs, and passenger
vehicles, thereby removing the seasonal barriers that are usual in
West Siberia, increasing revenue by initiating year-round
production and reducing operational expenses and complexity. It may
also be able to service future producing wells in the licence area
in the event of successful drilling.
David Sturt, Chief Executive Officer of PetroNeft Resources plc,
commented:
"It is exceptionally good news to be able to announce the
successful signing of the offtake contract at the same time as
awarding the road construction contract. In addition to providing
funding for building crucial infrastructure on the Cheremshanskoye
field, it also provides for the sale of the oil at very competitive
market rates.
These agreements are an important step forward towards
development of the Cheremshanskoye field, enabling the company to
establish year-round production from Licence 67 from early next
year and providing additional revenues that will be used for future
investment. We see significant value within Licence 67, and
execution of these two agreements represents a major step towards
realising this value which is a critical element in the company's
strategy."
For further information, contact:
+97 55 1919
David Sturt, CEO, PetroNeft Resources plc 808
John Frain/Brian Garrahy, Davy (NOMAD and Joint +353 1 679
Broker) 6363
+353 1 498
Joe Heron / Douglas Keatinge, Murray Consultants 0300
The information contained in this announcement has been reviewed
and verified by Mr. David Sturt, Chief Executive Officer and
Executive Director 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. Sturt holds a B.Sc. Degree in
Earth Sciences from Kingston University and an MSc. in Exploration
Geophysics from The University of Leeds. He is a member of the
Petroleum Exploration Society Great Britain and has over 35 years'
experience in oil and gas exploration and development.
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