REG - Petroneft Resources - Financing Update

Petroneft ResourcesAnnouncement

07/01/2022 07:00

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RNS Number : 6946X  Petroneft Resources PLC  07 January 2022

January 07, 2022

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

 

Financing Update

PetroNeft (AIM: PTR) an oil and 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, is pleased to provide
a financing update.

Convertible Loan facility

In June 2019, PetroNeft agreed a convertible loan facility of US$1.3 million
with a group of five lenders with a revised Convertible loan maturity date of
31(st) December 2021. Throughout 2021, the group of five lenders at various
times elected to convert 65% of their loan advance into Ordinary Equities of
PetroNeft Resources plc. The Company is now pleased to announce that it has
reached agreement with the five lenders to extend the term of the remaining
loan balance of $0.455 million under the following terms:

·      Extension to the Maturity date from 31(st) December 2021 to
31(st) December 2022.

·      Interest rate to remain at 8% above LIBOR.

·      The remaining loan balance may be converted fully at Stg0.06p per
Ordinary Equity Share in PetroNeft, at any time up to the revised maturity
date at the option of the loan holders.

The loan was provided by a group of five investors. Four of the investors are
related parties (as defined in the AIM Rules and Euronext Growth Market
Rules). Details of the loan amounts which remain outstanding to these related
parties are outlined in the table below. The directors of the Company, other
than Alastair McBain, Daria Shaftelskaya, and David Sturt, having consulted
with the Company's Nominated Advisor and Euronext Growth Market adviser,
consider the terms for the extension of the loan facility to be fair and
reasonable insofar as the Company's shareholders are concerned.

  Lender                   Amount provided  Relationship

                           (US$)
   Natlata Partners LLP.   196,000           Substantial shareholder
   ADM Consulting FZE      140,000          Beneficial owner substantial shareholder and Chairman of PetroNeft.
   Daria Shaftelskaya      84,000           PetroNeft Director and substantial shareholder of PetroNeft.
   David Sturt             17,500            PetroNeft CEO & Director

 

PetroNeft Chief Executive Officer, David Sturt, welcomed the extension:

"PetroNeft is a tight team, and we continue to benefit from the experience and
expertise of our senior Management team to devise and deliver a fiscally
robust capital structure to drive the business forward.  I believe the agreed
loan extension is a welcome development, combined with the added opportunity
for the investors to convert at Stg0.06p per Ordinary Equity Share, which
represents a significant 52.6 % premium above the average closing for the last
5 trading days and is a further vote of confidence in the growth momentum
PetroNeft can achieve in the coming year."

 

 For further information, contact:

   David Sturt, PetroNeft Resources plc                                        +971 55 1919 808
   John Frain / Ciara O'Mongain, Davy (NOMAD, Euronext Growth Market Adviser   +353 1 679 6363
 and Broker)
   Joe Heron / Douglas Keatinge / Jackie Phelan, Murray                        +353 1 498 0300

 

 

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