PetroNeft (PTR) an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67, provides a financing update.
Loan facility
In January 2018 PetroNeft agreed a loan facility for up to US$2 million with Swedish company Petrogrand AB (“Petrogrand”) secured on the assets of PetroNeft. The loan facility was fully drawn down and was used to finance the drilling of the successful C-4 well in 2018 and for general corporate purposes. The parties have agreed an increase in the facility by US$500,000 to US$2.5 million and a revised maturity date of 15 December 2019 (which may be extended by mutual consent of the parties). The revised terms include the potential entitlement to bonus payments of US$2.5 million per Licence if either or both Licence 61 or Licence 67 are sold before 31 December 2020.
As previously disclosed, due to Petrogrand being an associate (as defined in the AIM Rules and Euronext Growth Market Rules) of Mr Maxim Korobov, a PetroNeft director, the loan facility is considered to be a related party transaction under the AIM Rules and Euronext Growth Market Rules. The directors of the Company, other than Maxim Korobov, having consulted the Company's nominated advisor and Euronext Growth Market adviser, consider the terms of the loan facility to be fair and reasonable insofar as the Company's shareholders are concerned.
