Petroneft Resources PLC Company Update (6668H)
November 25 2022 - 6:58AM
UK Regulatory
TIDMPTR
RNS Number : 6668H
Petroneft Resources PLC
25 November 2022
PetroNeft Resources plc
25(th) Nov 2022
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, 90%
owner and operator of Licence 67 and 50% owner and operator of
Licence 61, announces the following update.
Licence 67 Cheremshanskoye Development Drilling
The drilling of up to five development wells at the
Cheremshanskoye field (Licence 67) has been delayed for the
foreseeable future due to inability to secure financing for the
program.
Earlier this year the Company announced the award for the
provision of drilling services at the Cheremshanskoye field,
Licence 67, to the drilling company SSK. The Company has been
working with a Russian domestic bank on the potential financing of
a significant portion of the costs for this drilling program.
Despite encouraging earlier communications, due to the on-going
geopolitical situation, the bank is no longer able to provide a
loan facility. The Company will continue to look for alternative
financing avenues but at the same time recognising that this is
likely to be particularly challenging under the current
circumstances.
Company's Auditor
BDO, who have acted as the statutory auditor to the Company
since 2019, have notified the Company of their intention to resign
as their policy is not to engage in any business involving
companies with significant operations or assets in the Russian
Federation . PetroNeft is currently working to source an
alternative auditor in respect of the Company's financial
statements for the current year which are due to be published in H1
2023.
Operational Update
All fields at Licence 61 remain shut in due to the on-going
legal dispute with Nord Imperial LLC regarding storage and transfer
of oil by pipeline from Licence 61 to the Transneft Entry point at
Zavyalovo.
Production at Licence 67 from the C-4 well on the
Cheremshanskoye field remains stable at 303 bopd without any signs
of decline and no water. The well has, since the start of
production produced over 170,000 barrels of oil.
PetroGrand Loan Facility
As previously announced, the redemption date for the PetroGrand
loan facility is 15(th) Dec 2022 with all principal and interest
due and payable on that date. We are in ongoing discussions with
PetroGrand to investigate all possible options and will keep
shareholders aware of any outcomes.
Strategic Review
In its Annual Report and Accounts for 2021, published on 29
September 2022, the Company highlighted the increasing challenges
facing the Company due to the continued Ukrainian-Russian conflict
and the consequent international sanctions directed at leading
Russian financial institutions and the Oil and Gas sector. The
difficulties in financing the drilling of development wells at the
Cheremshanskoye field combined with the pending resignation of the
Company's auditor is further evidence of these challenges.
Consequently, the directors of the Company believe that this is
an appropriate time to conduct a review of the strategic options
available to PetroNeft and will consider all viable options within
the context of the current geopolitical environment so as to
maximise value for shareholders (the "Strategic Review"). The
Strategic Review will include engagement with all stakeholders and
could lead to the full or partial disposal of the Company's
assets.
There is no certainty that any changes will result from the
Strategic Review. The Company will make further announcements in
due course.
This announcement contains inside information within the meaning
of the EU Market Abuse Regulation 596/2014. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
+353 1 647
Pavel Tetyakov, CEO, PetroNeft Resources plc 0280
Brian Garrahy/Ciara O'Mongain, Davy (NOMAD and +353 1 679
Corporate Broker) 6363
+353 1 498
Paul O'Kane, Murray Consultants 0300
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDFEAFEIEESELF
(END) Dow Jones Newswires
November 25, 2022 07:58 ET (12:58 GMT)
Petroneft Resources (LSE:PTR)
Historical Stock Chart
From Apr 2024 to May 2024
Petroneft Resources (LSE:PTR)
Historical Stock Chart
From May 2023 to May 2024