Company Update

RNS Number : 6049O

Petroneft Resources PLC

01 February 2023

 

PetroNeft Resources plc

1^st February 2023

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

COMPANY UPDATE

PetroNeft (AIM: PTR) an oil & 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 provides the following financing update.

Petrogrand Loan

Petrogrand AB ("Petrogrand") has agreed to extend the maturity date for their loan facility to 15^th March 2023.  The loan facility has a current redemption value of US$2.52 million.

2019 Convertible Loans

The holders of the 2019 Convertible Loans have agreed to extend the maturity date to 30^th March 2023.  The balance of the 2019 Convertible Loan outstanding is US$0.601 million.

Auditor Search

PetroNeft is currently working to source an auditor in respect of the Company's financial statements for the financial year ended 31 December 2022.  Under the rules of AIM and Euronext Growth, the deadline for publication of the audited full year financials is 30 June 2023.

Cash Holdings

	31 Jan 2023 Un- Audited USD	31 May 2022 Un-Audited USD	31 Dec 2021 Audited USD
Cash and Cash Equivalents PetroNeft Group1	439,566	221,706	915,602
Cash and Cash Equivalents PetroNeft	57,035	195,223	709,889
Cash and Cash Equivalents WorldAce Investments Limited2	155,103	3,088,343	185,274

Note 1: The Company and together with its subsidiaries..

Noted 2: WorldAce Investments Limited is PetroNeft's 50/50 Joint Venture with OIL India International B.V.

Existing cash holdings at PetroNeft level are circa US$57.03K.  All other funds are in the Russian operational entities. Due to the continued Russia-Ukraine conflict and the consequent international sanctions, it has become increasingly difficult for the Company to remit funds from the operational units. The deterioration in the domestic oil price in Russia has also affected the Company's ability to remit funds.

Operations Update

Licence 67: the C-4 well at the Cheremshanskoye field continues to produce at +/-300 BOPD without any decline.

Licence 61 : we have commenced selling small quantiles of oil to local refineries. We are currently starting up the CPF, as we are looking at trucking out larger quantities of oil, but this will be dependent on winter roads being in place.

Nord Imperial Legal Case

As announced by the Company, Nord Imperial LLC suspended all transshipments of oil from Stimul T LLC, the 100% subsidiary of PetroNeft's joint venture WorldAce Investment Limited who own 100% of Licence 61. To protect the Company's position, and due to limited legacy progress, in our attempts to find a more equitable outcome on tariff charges, the Company launched a series of legal cases against Nord Imperial, the latest one including a submission to the Russian Anti-Monopoly Committee, which is formally investigating alleged market abuses given Nord Imperial LLC's dominant market position.

Strategic Review

As previously announced, the directors of the Company continue to review strategic options available to PetroNeft and are considering all viable options within the context of the current geopolitical environment to maximise value for shareholders.

For further information, contact:

Pavel Tetyakov, CEO, PetroNeft Resources plc	[phone]
Brian Garrahy / Ciara O'Mongain, Davy (NOMAD and Corporate Broker)	[phone]
Paul O'Kane, Murray Consultants	[phone]

 

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