REG - Pennpetro Energy PLC - Signing of Loan Release Deed agreement

Pennpetro EnergyAnnouncement

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RNS Number : 9224Y  Pennpetro Energy PLC  31 March 2026

31 March 2026

 

Pennpetro Energy Plc

("Pennpetro" or the "Company")

Signing of Loan Release Deed agreement

 

Pennpetro Energy plc, the company focused on developing strategic energy
projects, announces that the Company has signed an important agreement
including a Loan Release Deed ('Agreement') with Petroquest on 30(th) March
2026.

The Agreement discharges the Company and its US subsidiaries (Pennpetro USA
Corp, Nobel Petroleum INC, and Nobel Petroleum LLC, jointly referred to as PPP
subsidiaries) from all liabilities under the Petroquest Loan Note. In return
Petroquest will be issued 51% of the equity in Pennpetro USA Corp.

The c. $5m debt has been irrevocably removed from the Company balance sheet.
The US subsidiaries will no longer be included in future PPP consolidated
accounts.

Following a resolution signed by the Company Board, the former directors at
the US subsidiary, Pennpetro USA Corp, have been removed and replaced with
Mavriky Kalugin, CEO of Pennpetro Energy Plc, effective immediately, with one
further director to be appointed, allowing Petroquest and the Company to take
back control of the associated further subsidiaries and their bank accounts,
in the United States.

Moving forward the Company will form a new joint venture ('JV') with
Petroquest in the United States to sign a newly negotiated Chalk Talk A-1H
lease, including the payment of significant, until now, unpaid royalties.

Mavriky Kalugin will be leading this new company, operationally, in the United
States, for the JV partners.

Despite the failings of previous management in the development of this asset,
significant investments were made into the Chalk Talk A-1H well, including
drilling, infrastructure and equipment, all lost when the lease was allowed to
expire and non-payment of legacy royalties created bad feelings between the
lease holders and the Company.

The efforts of the current board and support of Petroquest in resolving the
issues in the past mean that these assets and investments will return to the
Company through the JV as part of the new lease agreement terms.

Funding will come from a dedicated RMD Group loan to Pennpetro Energy Plc,
that will in turn be made available, by the Company, to the JV and will be
subject to a priority repayment plan from production revenues. At the
Company's sole discretion, these revenues may be used to reopen subsequent
wells, if valid opportunities present themselves.

The above may result in a reversal of the impairment of the Chalk Talk A-1H
well assets, to be confirmed shortly and to be subsequently announced upon
such confirmation.

The joint venture agreement for this well will see the Company receive 51% of
profits, and Petroquest 49%, once the JV has repaid the Company's loan
commitment. Further updates will be made around a timeline to restart
production.

Richard Spinks, Executive Chairman said: "This is a significant moment and
clean start for the Company, the importance of which should not be
underestimated.

Signing of the agreement with Petroquest to remove the overhanging debt allows
the Company to push forward, at pace, with a solid work programme to return
the Company to a position of receiving revenue.

I would like to add that this new arrangement, not only repairs the Company's
reputation in Texas, having made good on former management's failure to pay
royalties in the past, and this JV is on significantly more favorable terms
for shareholders than the previous Globalvision transaction, previously
envisaged, but which did not materialise.

We hope this clarifies a number of questions that have been asked and I look
forward to bringing shareholders more news as and when developments occur."

 

For further information, contact:

 Pennpetro Energy Plc                       c/o Camarco

 Richard Spinks | Mavriky Kalugin
 Oak Securities - Broker                    +44 (0) 20 3973 2678

 Jerry Keen, Head of Corporate Broking
 Camarco - Financial PR                     +44 (0) 20 3757 4980

 Andrew Turner | Fergus Young               ppp@camarco.co.uk (mailto:ppp@camarco.co.uk)

 

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