REG - Petroneft Resources - Company Update

Petroneft ResourcesAnnouncement

01/02/2023 11:30

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RNS Number : 6049O  Petroneft Resources PLC  01 February 2023

PetroNeft Resources plc

1(st) February 2023

 

PetroNeft Resources plc ('PetroNeft' or 'the Company')

 

COMPANY UPDATE

 

PetroNeft (AIM: PTR) an oil & gas exploration and production company,
operating in the Tomsk Oblast, Russian Federation, and 90% owner and operator
of Licence 67 and 50% owner and operator of Licence 61 provides the following
financing update.

Petrogrand Loan

Petrogrand AB ("Petrogrand") has agreed to extend the maturity date for their
loan facility to 15(th) March 2023.  The loan facility has a current
redemption value of US$2.52 million.

2019 Convertible Loans

The holders of the 2019 Convertible Loans have agreed to extend the maturity
date to 30(th) March 2023.  The balance of the 2019 Convertible Loan
outstanding is US$0.601 million.

Auditor Search

PetroNeft is currently working to source an auditor in respect of the
Company's financial statements for the financial year ended 31 December
2022.  Under the rules of AIM and Euronext Growth, the deadline for
publication of the audited full year financials is 30 June 2023.

Cash Holdings

                                                            31 Jan 2023 Un- Audited USD  31 May 2022 Un-Audited USD  31 Dec 2021 Audited USD
 Cash and Cash Equivalents PetroNeft Group(1)               439,566                      221,706                     915,602
 Cash and Cash Equivalents PetroNeft                        57,035                       195,223                     709,889
 Cash and Cash Equivalents WorldAce Investments Limited(2)  155,103                      3,088,343                   185,274

Note 1: The Company and together with its subsidiaries..

Noted 2: WorldAce Investments Limited is PetroNeft's 50/50 Joint Venture with
OIL India International B.V.

 

Existing cash holdings at PetroNeft level are circa US$57.03K.  All other
funds are in the Russian operational entities. Due to the continued
Russia-Ukraine conflict and the consequent international sanctions, it has
become increasingly difficult for the Company to remit funds from the
operational units. The deterioration in the domestic oil price in Russia has
also affected the Company's ability to remit funds.

Operations Update

 

Licence 67: the C-4 well at the Cheremshanskoye field continues to produce at
+/-300 BOPD without any decline.

 

Licence 61: we have commenced selling small quantiles of oil to local
refineries. We are currently starting up the CPF, as we are looking at
trucking out larger quantities of oil, but this will be dependent on winter
roads being in place.

 

Nord Imperial Legal Case

 

As announced by the Company, Nord Imperial LLC suspended all transshipments of
oil from Stimul T LLC, the 100% subsidiary of PetroNeft's joint venture
WorldAce Investment Limited who own 100% of Licence 61. To protect the
Company's position, and due to limited legacy progress, in our attempts to
find a more equitable outcome on tariff charges, the Company launched a series
of legal cases against Nord Imperial, the latest one including a submission to
the Russian Anti-Monopoly Committee, which is formally investigating alleged
market abuses given Nord Imperial LLC's dominant market position.

 

Strategic Review

As previously announced, the directors of the Company continue to review
strategic options available to PetroNeft and are considering all viable
options within the context of the current geopolitical environment to maximise
value for shareholders.

For further information, contact:

 Pavel Tetyakov, CEO, PetroNeft Resources plc                +353 1 6470280
 Brian Garrahy / Ciara O'Mongain, Davy (NOMAD and Corporate  +353 1 679 6363
 Broker)
 Paul O'Kane, Murray Consultants                             +353 1 498 0300

 

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