REG - Petroneft Resources - Company Update

Petroneft ResourcesAnnouncement

05/09/2023 16:00

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RNS Number : 4626L  Petroneft Resources PLC  05 September 2023

PetroNeft Resources plc

5 September 2023

 

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

 

COMPANY UPDATE

 

PetroNeft announces that loan settlement agreements have been concluded with
the remaining debt finance holders as reported below.

Background

Following on from the signing of a loan settlement agreement with Petrogrand
("Petrogrand Loan Settlement") announced on 2(nd) August, the Company has
concluded further debt settlement agreements with all parties to the Company's
remaining three term loan facilities.

 

 Debt Type                                     Balance -  Concession % (on Principal)  Concession % (on Interest)  Cash Settlement

                                               (US$ M)                                                             (US$ M)
 2019 Convertible notes                        0.63       90%                          100%                        0.05
 2021 Convertible notes                        1.29       90%                          100%                        0.10
 Convertible loan from Belgrave Naftogas B.V.  1.07       90%                          100%                        0.08
 Total                                         2.99       90.0%                        100%                        0.23

 

 

The terms of the loan settlement agreements are:

 

·    PetroNeft to pay US$0.23M representing 10% of outstanding principal
of US$2.3M within seven days of receiving funds from the sale of Lineynoye LLC
(owner of Licence 67).

 

·    Lenders will waive 100% of the accumulated interest (US$0.69M).

 

·    The cash settlement amounts will be amended for any withholding tax
deducted at source in Russia and any adverse Rouble/Dollar exchange movements.

 

·    The loan agreements are conditional on the successful closure of the
sale of Lineynoye LLC.  PetroNeft announced on 14th June 2023 that it had
entered into a non-binding conditional Heads of Terms to sell its entire
interest in Lineynoye LLC, the subsidiary through which the Company holds its
interest in Licence 67, to Pavel Tetyakov (CEO of PetroNeft).

 

These agreements, together with the Petrogrand Loan Settlement, reduce the
outstanding debt as of 30(th) June 2023 from US$5.64m to US$0.92M.

 

Natlata Partners Limited holds c. US$196,000 and US$138,000 of the 2019
Convertible notes and 2021 Convertible notes respectively. Natlata Partners
Limited is a major shareholder of PetroNeft.  Consequently, this aspect of
the debt restructuring when aggregated with the Petrogrand Loan Settlement
constitutes a related party transaction pursuant to the AIM and Euronext
Growth Rules.

The directors of the Company, having consulted the Company's nominated advisor
and Euronext Growth adviser, consider the terms of the loan settlement
agreement with Natlata Partners Limited to be fair and reasonable insofar as
the Company's independent shareholders are concerned.

For further information, contact:

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

 

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