TIDMPTR
RNS Number : 4605N
Petroneft Resources PLC
01 February 2021
PetroNeft Resources plc
1(st) February 2021
PetroNeft Resources plc ('PetroNeft' or 'the Company')
Acquisition of an additional 40% Interest in Licence 67
Director Appointment
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 update:
Highlights
-- Execution of Sales Purchase Agreement to acquire an additional 40% interest in Licence 67.
-- Alastair McBain appointed as a Non-Executive Director of the company.
PetroNeft is pleased to annouce that it has signed a Sales and
Purchase Agreement with Belgrave Naftogas (formerly Arawak Russia
B.V.) for the acquisition of a 40% interest in Licence 67 for
US$2.9 million to be satisfied in the following way:
-- Issuance of 80,000,000 PetroNeft ordinary shares to Belgrave
Naftogas (representing a 8.7% shareholding) for a value of US$1.2
million (US$0.015 per ordinary per ordinary share).
-- Cash consideration of US$1.7 million which will be financed
through a 3 year loan from Belgrave Naftogas to PetroNeft with an
interest rate of 8% above Bank of England base rate. The loan and
interest are to be repaid at the end of the loan. Up to 50% of the
loan can be converted by Belgrave Naftogas to PetroNeft ordinary
shares at 2p per ordinary share during Year 1; 2.5p per ordinary
share during Year 2; and 3p per ordinary share during Year 3.
Belgrave Naftogas is to be carried by PetroNeft for their 10%
share of the Joint Venture costs up to repayment of the loan, after
which time Belgrave Naftogas will fund their share of the Joint
Venture costs.
Completion of the acqusition is subject to certain conditions
precedent, which are expected to be satisfied no later than the
12(th) March 2021.
Licence 67 contains two oil fields, Ledovoye and
Cheremshanskoye. In 2016 Rhyder Scott calculated 2P reserves for
the Ledovoye field of 14 mmbbls and 3P reserves of 17.4 mmbbls. In
2019 and following the successful C-4 well, the Russian State
Reserves Committee approved C1+C2 reserves (approximately
equivalent to International 2P reserves) for the Cheremshanskoye
field of 19.2 mmbbls. This qualifies the field for a small field
partial exemption of the state Mineral Extraction tax. The
Cheremshanskoye is about to commence all year round production
imminently.
Net Assets of Russian BD Holdings B.V,.a joint venture company
which is currently 50% owned by PetroNeft and 50% by Belgrave
Naftogas and owns 100% interest in Licence 67, as at 30(th) June
2020 amounted to $6,043,753 with Loss for continuing operations
before tax for the six months ending 30(th) June amounting to
$254,902 unaudited.
As previously announced, Belgrave Naftogas has the right to
nominate a Director to the board and has nominated Alastair McBain
as a non-executive director with immediate effect.
Alastair has over 37 years' experience in the International Oil
and Gas industry. He spent the first 17 years of his career at
Royal Dutch Shell in numerous senior international commercial
positions including assignments in Singapore, Dubai, China and
Venezuela. He joined the Vitol group in 1995 to head up the growth
of the group's portfolio of upstream assets and became CEO of
Arawak Energy in 2002. Alastair grew the company from an initial
$20M valuation with zero production to a $0.5Bn company producing
12,000 boepd from assets in Kazakhstan and Russia. He also oversaw
the migration of the company from a junior listing on the Toronto
exchange to a full listing on the London Stock Exchange. Following
the sale of Arawak's producing assets, he worked with Vitol in a
variety of senior positions including board Chairman of
GeoAlliance, one of Ukraine's leading producers of gas liquids. He
left Vitol in early 2020 to form Sarum Energy, a company which,
through its Dutch subsidiary, owns a 50% interest in Licence 67. He
holds an MA in Oriental Studies from the University of Oxford and
in addition to his native English, is also a fluent Mandarin
speaker.
David Sturt, CEO PetroNeft commented:
"This is an important step forward for PetroNeft and is strong
demonstration of our increasing confidence in and understanding of
the quality of our assets. Our low-cost operational activity on
Licence 67 has already delivered first production. We are confident
that the work we have done will provide a platform for significant
future growth on this licence. This is another important milestone
in delivering the true value of our assets and delivering value to
shareholders."
Alastair McBain, Incoming Director of PetroNeft Resources plc,
commented:
"I am very pleased to be joining the Company at this important
stage in the Company's development. Being the former CEO of Arawak
Energy, I have worked alongside PetroNeft for many years and
believe that these assets can deliver value to shareholders. I look
forward to working with the management and other board
members."
G. David Golder, Chairman of the Board commented:
"I would like to welcome Alastair McBain as he joins the Board.
His experience and track record particularly in Russia of
delivering shareholder value combined with his considerable
commercial experience will be very valuable to the company."
The following information is disclosed pursuant to Rule 17 of
the AIM Rules for Companies and Rule 5.22 (b) of Chapter 5:
Additional Rules for the Euronext Growth Market operated by
Euronext Dublin.
Alastair Mc Bain, aged 64, has held the following directorships
and/or partnerships in the past 5 years:
Current: Past: Arawak Energy Int. Ltd.
Sarum Energy Ltd. GeoAlliance
Belgrave Naftogas Commonwealth Gobustan Ltd.
B.V. Umm Al Quwain Petroleum
ADM Consulting FZE Energold drilling
Sarum Management Services
Mr. McBain currently holds 12,698,500 shares in PetroNeft,
representing 0.66% of the Company's issued share Capital.
Mr McBain is a director and 72% shareholder in Sarum Energy who
will hold 80,000,000 PetroNeft shares via its wholly owned
subsidiary Belgrave Naftogas , representing an 8.7% of the
Company's issued share capital, upon completion of the
transaction.
Mr McBain also participated in the 2019 Convertible Loan
issuance, providing $400,000 through his wholly owned subsidiary
ADM Consulting FZE.
The Company confirms that there is no other information that is
required to be disclosed in accordance with Rule 17 of the AIM
Rules for Companies and Rule 5.22 (b) of Chapter 5: Additional
Rules for the Euronext Growth Market operated by Euronext
Dublin.
For further information, contact:
+1 713 988
David Sturt, CEO, PetroNeft Resources plc 2500
John Frain/Caroline Pearson, Davy (NOMAD and Joint +353 1 679
Broker) 6363
+353 1 498
Joe Heron / Douglas Keatinge, Murray Consultants 0300
Glossary
2P Proven and Probable reserves under the Society
of Petroleum Engineers Petroleum Reserves Management
System
mmbbls Million barrels
------------------------------------------------------
C1 + C2 Russian State Reserves C1 + C2, equivalent
to 2P (Proven and Probable)
------------------------------------------------------
boepd Barrels of oil equivalent per day
------------------------------------------------------
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END
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February 01, 2021 02:00 ET (07:00 GMT)
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