Signing of Loan Release Deed agreement

Pennpetro Energy PLC

31 March 2026

 

31 March 2026

Pennpetro Energy Plc

("Pennpetro" or the "Company")

Signing of Loan Release Deed agreement

Pennpetro Energy plc, the company focused on developing strategic energy projects, announces that the Company has signed an important agreement including a Loan Release Deed ('Agreement') with Petroquest on 30^th March 2026.

The Agreement discharges the Company and its US subsidiaries (Pennpetro USA Corp, Nobel Petroleum INC, and Nobel Petroleum LLC, jointly referred to as PPP subsidiaries) from all liabilities under the Petroquest Loan Note. In return Petroquest will be issued 51% of the equity in Pennpetro USA Corp.

The c. $5m debt has been irrevocably removed from the Company balance sheet. The US subsidiaries will no longer be included in future PPP consolidated accounts.

Following a resolution signed by the Company Board, the former directors at the US subsidiary, Pennpetro USA Corp, have been removed and replaced with Mavriky Kalugin, CEO of Pennpetro Energy Plc, effective immediately, with one further director to be appointed, allowing Petroquest and the Company to take back control of the associated further subsidiaries and their bank accounts, in the United States.

Moving forward the Company will form a new joint venture ('JV') with Petroquest in the United States to sign a newly negotiated Chalk Talk A-1H lease, including the payment of significant, until now, unpaid royalties.

Mavriky Kalugin will be leading this new company, operationally, in the United States, for the JV partners.

Despite the failings of previous management in the development of this asset, significant investments were made into the Chalk Talk A-1H well, including drilling, infrastructure and equipment, all lost when the lease was allowed to expire and non-payment of legacy royalties created bad feelings between the lease holders and the Company.

The efforts of the current board and support of Petroquest in resolving the issues in the past mean that these assets and investments will return to the Company through the JV as part of the new lease agreement terms.

Funding will come from a dedicated RMD Group loan to Pennpetro Energy Plc, that will in turn be made available, by the Company, to the JV and will be subject to a priority repayment plan from production revenues. At the Company's sole discretion, these revenues may be used to reopen subsequent wells, if valid opportunities present themselves.

The above may result in a reversal of the impairment of the Chalk Talk A-1H well assets, to be confirmed shortly and to be subsequently announced upon such confirmation.

The joint venture agreement for this well will see the Company receive 51% of profits, and Petroquest 49%, once the JV has repaid the Company's loan commitment. Further updates will be made around a timeline to restart production.

Richard Spinks, Executive Chairman said: "This is a significant moment and clean start for the Company, the importance of which should not be underestimated.

Signing of the agreement with Petroquest to remove the overhanging debt allows the Company to push forward, at pace, with a solid work programme to return the Company to a position of receiving revenue.

I would like to add that this new arrangement, not only repairs the Company's reputation in Texas, having made good on former management's failure to pay royalties in the past, and this JV is on significantly more favorable terms for shareholders than the previous Globalvision transaction, previously envisaged, but which did not materialise.

We hope this clarifies a number of questions that have been asked and I look forward to bringing shareholders more news as and when developments occur."

For further information, contact:

Pennpetro Energy Plc Richard Spinks | Mavriky Kalugin	c/o Camarco
Oak Securities - Broker Jerry Keen, Head of Corporate Broking	[phone]
Camarco - Financial PR Andrew Turner | Fergus Young	[phone] [e-mail]

 

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