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CORRECT (Mar 8): PetroNeft completes Licence 67 interest purchase

15th Mar 2021 13:41

(Correcting articles on January 15, February 1 and March 8 to clarify that Belgrave Naftogas BV is not part of the Naftogaz Group in Ukraine.)

PetroNeft Resources PLC - Irish oil and gas exploration company operating in Russia - Completes acquisition of additional 40% interest in Licence 67, containing the two oil fields Ledovoye and Cheremshanskoye, from Belgrave Naftogas BV. Says PetroNeft already owns a 50% stake in Licence 67, which it acquired in a state auction in 2009, resulting in it now owning a 90% stake. Notes in January, it signed a heads of terms agreement with Belgrave Naftogas BV. Says purchase consideration is USD2.9 million, satisfied through the issue of 80 million PetroNeft shares to Belgrave Naftogas for a value of USD1.2 million, and USD1.7 million in cash, which will be financed through a three-year loan from Belgrave Naftogas to PetroNeft.

"Licence 67 is an asset which we believe has significant potential value for PetroNeft shareholders. Over the last two years our understanding of this licence has improved considerably and we are delighted to be bringing it into production. With oil prices improving and a favourable tax treatment for this licence, we see this as an investment which can deliver significant value at low cost," says Chief Executive David Sturt.

Current stock price: 2.96 pence on Monday

Year-to-date change: up sharply from 0.65p on December 31

By Zoe Wickens; [email protected]

Copyright 2021 Alliance News Limited. All Rights Reserved.


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