PetroNeft: Agrees US$2m Loan with Petrogrand, Winter Operations Commence
PetroNeft an oil & gas exploration and production company, operating in the Tomsk Oblast, Russian Federation, and 50% owner and operator of Licences 61 and 67, is pleased to provide a financing update.
Highlights
- US$2 million loan agreed with Petrogrand AB
- Operations – Winter production from Sibkrayevskoye is getting underway
Loan facility
PetroNeft has agreed a loan facility for up to US$2 million with Swedish company Petrogrand AB (“Petrogrand”). The loan matures on 31 December 2018. The loan facility will be used for general corporate purposes and to finance a potential drilling programme in 2018. Discussions with partners on a 2018 drilling programme are ongoing. This loan facility will provide time and space for a more long-term financing solution to be put in place.
Due to Petrogrand being an associate (as defined in the AIM Rules and ESM Rules) of Mr Maxim Korobov, a PetroNeft director, the loan facility is considered to be a related party transaction under the AIM Rules and ESM Rules. The directors of the Company, other than Maxim Korobov, having consulted the Company’s nominated advisor and ESM adviser, consider the terms of the loan facility to be fair and reasonable insofar as the Company’s shareholders are concerned.
Operations
Winter production from Sibkrayevskoye is getting underway now that winter roads have become available. We will update shareholders in due course on production for Q4-2017 and on the results achieved from the winter production programme.
