17th Mar 2014 11:25
LONDON (Alliance News) - Petroneft Resources PLC Monday said it has completed a USD6.7 million fundraising and production has increased at its 61 and 67 licences in Russia.
The Russian oil production company said it has agreed the terms of a placing of 62.3 million shares at 5 pence per share raising USD5.2 million and it has arranged an additional USD1.5 million debt drawdown with Arawak Energy by increasing its existing USD15 million loan to USD16.5 million on the same terms.
Petroneft said it has also granted Arawak an additional 2 million warrants over ordinary shares at a strike price of USD0.0891 per share.
The company said it will use the proceeds of the placing to purchase supplies and equipment to enable a full programme of works in 2014 and the payment of certain capital obligations.
Petroneft also said production at the company's licences is currently roughly 2,400 barrels of oil per day following the successful completion of some workovers, with well performance in line with expectations.
The company added that it is making solid progress on a deal to sell some of its interest in its Licence 61 site in order to repay all of its debts and improve working capital purposes. Petroneft said it expects the deal to be finalised in the coming weeks.
The firm added that once the deal is complete plans are in place to drill additional production wells at Arbuzovskoye and delineation wells at Tungolskoye and Sibkrayevskoye, where significant upside potential and near-term developments are possible.
Petroneft shares were up 8.0% to 5.40 pence, putting it in the top AIM risers Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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