REG - Petroneft Resources - Company Update

Petroneft ResourcesAnnouncement

17/03/2023 11:45

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RNS Number : 3986T  Petroneft Resources PLC  17 March 2023

PetroNeft Resources plc

17(th) March 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.

Strategic Review

The Independent Committee remains in discussion with Pavel Tetyakov, CEO of
PetroNeft, which may or may not lead to a binding offer for the Company's
Russian assets. At this stage there is no certainty that this will lead to a
successful outcome.

The Company is also in discussions with all its main debt holders, in
particular Petrogrand AB ($2.55M) and the holders of the 2021 Convertible note
($1.24M) whose maturity dates have expired at this time.

Litigation

The Tomsk Regional Court of Arbitrage has just made the decision on the first
claim from Nord Imperial LLC, the owner of the pipeline connecting Licence 61
to the Transneft pipeline system, to Stimul-T LLC, the holder of Licence 61,
to collect debt for oil transportation services in the amount of USD 4.2MM
(main debt) and USD 2.3MM (penalties). The court resolved to satisfy the claim
of Nord Imperial in the amount of USD 3.8MM (main debt) and USD 2.3MM
(penalties).

The Company believes there are grounds to further reduce the claimed amount
and is now preparing the application to the Court of Appeal.

Whilst the Company is reviewing options in light of the court ruling, the
inability to be able to transport oil out of Licence 61 combined with this
court ruling is increasingly leading to a challenging future for Stimul-T

Website

The Company has been experiencing connectivity issues with the server where
its website is hosted. Work is ongoing with our IT consultants and the website
hosting Company to resolve these issues. We anticipate these issues to be
resolved shortly.

For further information, contact:

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

 

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