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PetroNeft agrees Licence 61 farm-out with OIL

By BFN News | 04:25 PM | Thursday 17 April, 2014


PetroNeft, the owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, has entered into a binding agreement in respect of a 50% interest in Licence 61 with Oil India Limited. OIL will acquire a 50% interest in Licence 61 by making a total investment of up to US$ 85m consisting of: · US$35m upfront cash payment which will enable PetroNeft to repay in full its existing debts (the Macquarie debt facility and the Arawak loan) and have cash for working capital purposes; · US$45m of exploration and development expenditure on Licence 61 · US$5m performance bonus, contingent upon average production from the Sibkrayevskoye Field reaching 7,500 barrels of oil per day within the next 5 years. The transaction is subject to shareholder vote and regulatory approval At 4:25pm: (LON:PTR) Petroneft Resources PLC share price was +0.74p at 6.35p Story provided by StockMarketWire.com

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