News

Share Issue

PetroNeft has settled outstanding liabilities owed to Dennis Francis totalling $200,000 through the issue of 10,471,204 new ordinary shares.

Resultant holdings of Mr Francis:

	Ordinary Shares held  prior to Share Issue	Share      Issue	Resulting holding    of Ordinary Shares	% of Issued      Share Capital*
Dennis Francis	36,361,620	10,471,204	46,832,824	5.58%

                                               

*This percentage shareholding is based on a total shares now in issue figure of 839,357,061 ordinary shares.

The Company will apply for admission of the Shares to be traded on the AIM and Euronext Growth markets. It is expected that Admission will take place and that trading will commence on or around 14^th May 2020.

For further information, contact:

David Sturt, CEO, PetroNeft Resources plc	+971 55 1919 808
John Frain/Brian Garrahy, Davy (NOMAD and Broker)	+353 1 679 6363
Joe Heron / Douglas Keatinge, Murray Consultants	+353 1 498 0300

 

Highlights

• Successful re-entry of the C-3 well in the Lower Jurassic J14 interval in the C-3 well. Testing confirmed gas, and non-commercial quantities of high paraffin condensate/light oil.

• Work over of the J14 interval was under budget.

•  Testing of the upper horizons and the well re-entry program as a whole has been suspended due to the current global situation.

Highlights

·         Connection of the Sibkrayevskoye field to the Central Processing Facility enabling year-round production from Sibkrayevskoye.

Highlights

·         Successful re-entering of the C-4 well, flowing naturally at up to 476 bopd of good quality 100% oil from the Upper Jurassic J1-1 & J1-3 reservoirs.

·         Negotiated attractive long-term oil sales contract for all oil produced from Licence 67. Approximately 1,200 bbls of oil already sold and transferred to the refinery. These are the first commercial sales from Licence 67. 

·         High value barrels attracting lower MET rate.

·         Work over rig now moving from C-4 to the C-3 well on the southern margin of the Cheremshanskoye field to test the deeper Jurassic J-14 reservoir.

Operational Highlights

·         Contract awarded and construction commenced on mini oil processing facility on Licence 61, completion due in 2020.

·         Operations commence on Licence 67 with construction of winter road linking the C-4 and C-3 wells to the road and contract awarded for work over rig for the C-4 well work over which will start in January.

Board Changes:

·         Maxim Korobov has elected to resign from the Board. Pavel Tetyakov, the Company’s Vice President of Business Development and Daria Shaftelskaya join the board with immediate effect.

The board of PetroNeft is pleased to announce that all resolutions proposed to shareholders at the Company's extraordinary general meeting held in Dublin on 7 January 2020 were duly passed. The meeting was to approve the Placing announced on 12 December 2019 and the issue of 107,755,037 Placing Shares at a price of £0.015 each.

Highlights:

• Gross proceeds of US$2.12 million raised at £0.015 per share in a placing with institutional and other investors, a premium of approximately 58% 

• Money raised will primarily be used to fund the 2020 capital investment program 

• Significant commitment from directors, supporting 44% of the placing 

• Petrogrand Loan which was scheduled to expire on 15^th December 2019 has been extended for one year with a potential further year extension to 15^th December 2021 if certain milestones are met. 

• EGM to held in Dublin on 7^th January to approve capital raise.

Highlights

• Plan to bring Cheremshanskoye field in Licence 67 into production during Q1 2020.

• Exploring options to work over and re-test two wells in the Ledovoye field, also in Licence 67, during 2020.

PetroNeft (AIM: PTR) an oil & gas exploration and production company operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67 is pleased to report its results for the 6 months ended 30 June 2019.

Highlights

• Gross production from Licence 61 in H1 2019 was 1,755bopd (877.5bopd net to Petroneft)

• Achieved approval from GKZ (Russian State Reserves Board) for 19.26mmbbls of C1 + C2 reserves as a result of the drilling of the C-4 well on the Cheremshanskoye field in 2018. This is a key milestone as it enables the company to start looking at development options for the field.

Loan facility

PetroNeft has entered into a convertible loan facility of US$1.3 million with a group of five lenders. The convertible loan matures on 31^st December 2020 or on the sale of either Licence 61 or Licence 67.   The loan facility will be used for general corporate and ongoing operational purposes and carries an interest rate of 8% above USD LIBOR. Lenders can elect at any time to convert up to 65% of the outstanding loan to shares at a conversion price of US$0.01547 (1.547 cent).

PetroNeft (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to report its final results for the year ended 31 December 2018.

Highlights

·         C-4 well at Cheremshanskoye produced about 450 bopd on test

·         Gross production at Licence 61 in 2018 was 713,603 barrels of oil or an average of 1,955 bopd

o   While this represents a reduction in production it is ahead of expectations due to continued good performance of horizontal wells at South Arbuzovskoye

·         64.2 mmbbls total proved and probable (2P) reserves net to PetroNeft

PetroNeft (AIM: PTR) an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67 (the remaining 50% held by Arawak Energy), is pleased to give the following update in relation to reserves at its Licence 67.

 Highlights

 ·         New reserves approved for Licence 67, Cheremshanskoye field.

 ·         Approximately 19.26 mmbbls of C1 + C2 reserves (gross) for the Jurassic Reservoirs.

 ·         Currently examining development options for Licence 67.

 ·         Material additional exploration potential of the overlying Cretaceous section being studied.

PetroNeft has agreed to issue 13,884,594 Ordinary Shares in settlement of liabilities as follows:

“I have now been in my new position as CEO for just over two weeks and thought it would be an appropriate time to update you on my initial thoughts."

Loan facility

In January 2018 PetroNeft agreed a loan facility for up to US$2 million with Swedish company Petrogrand AB (“Petrogrand”) secured on the assets of PetroNeft.  The loan facility was fully drawn down and was used to finance the drilling of the successful C-4 well in 2018 and for general corporate purposes.  The parties have agreed an increase in the facility by US$500,000 to US$2.5 million and a revised maturity date of 15 December 2019 (which may be extended by mutual consent of the parties).

Paul Dowling, CFO and Company Secretary, will depart the Company at the end of January 2019 to pursue other opportunities. Paul will be available to the Company for a transition period while a suitable candidate is identified by the Company..

PetroNeft (AIM: PTR) an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67, is pleased to announce the selection and appointment of a new Chief Executive Officer (“CEO”).

 Mr. David Sturt, who has been a Non-Executive Director of the Company since 2016 will become CEO with effect from 25 March 2019. In the meantime, Karl Johnson, VP of Operations, will continue as Interim CEO.

Loan facility

In January 2018 PetroNeft agreed a loan facility for up to US$2 million with Swedish company Petrogrand AB (“Petrogrand”) secured on the assets of PetroNeft. The loan facility was fully drawn down and was used to finance the drilling of the successful C-4 well in 2018 and for general corporate purposes. The loan matured on 31 December 2018, however discussions are ongoing to agree an extension and an increase to the facility. We will update shareholders in due course.