30th Jun 2014 15:04
LONDON (Alliance News) - PetroNeft Resources PLC Monday said it has been granted Russian regulatory approval for its planned sale of 50% interest in its Licence 61 site in Russia to Oil India Ltd.
The Russian oil and gas exploration and development company said formal completion of the deal is expected in the coming days, and debt that the company owed to Macquarie and Arawak banks has been repaid from the initial receipts of the deal.
As part of the deal, Oil India Ltd will invest USD85 million, including a USD35 million upfront cash payment, USD45 million in exploration and development expenditure and a USD5 million performance bonus.
PetroNeft expects to start drilling at the Tungolskoye 5 well on site in mid-July, which will be the first horizontal well drilled by the company and should take around 60 days to drill.
"We will re-commence drilling at Licence 61 shortly and I look forward to updating shareholders with the results of this exciting programme," Chief Executive Officer Dennis Francis said in a statement.
PetroNeft shares were up 2.4% to 6.50 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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