US$5m Initial Bank Facility signed, exploration programme to recommence, PetroNeft Resources PLC
Release Date: 2010-03-31
PetroNeft Resources plc (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russia, has signed an initial US$5 million debt facility, of which US$2 million is available immediately, with Macquarie Bank Limited on 30 March 2010.Under the terms of the loan, PetroNeft has granted 4,700,000 warrants to subscribe for Ordinary Shares at a price of £0.30. Should further tranches of the loan be drawn Macquarie will be entitled to further warrants. The facility matures on 30 June 2011.
PetroNeft is also negotiating with international banks with a view to provide a larger facility over the coming months. This larger facility will provide both working capital and the flexibility to advance the Group's exploration and development activities on licences 61 and 67 over the coming years.
Petroneft is also recommencing a 2010-2011 Exploration and Delineation programme for Licence 61, with at least three exploration/delineation wells (Arbuzovskaya, Kondrashevskoye and Sibkrayevskaya) to be drilled starting from October 2010.
Arbuzovskaya prospects have been selected as a priority due to their close proximity to the Lineynoye oil field where the best quality oil reservoirs have been discovered to date and where the pipeline and field facilities will be located allowing for a low cost and efficient tie in of wells at Arbuzovskaya.
In winter 2010/11, a high impact exploration well is to be drilled at the Sibkrayevskaya prospect, and a delineation well at the Kondrashevskoye oil field. Potential by-passed pay has been identified at Sibkrayevskaya whereas Kondrashevskoye has the potential for further upside above the 8 million barrels of 2P reserves currently identified at this field.
Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, comments: "We are very pleased to have signed the loan agreement with Macquarie Bank. This facility enables us to accelerate our exploration programme in the northern part of Licence 61 by drilling one high impact exploration well in 2010. Two additional wells will be drilled in 2011, all of which, if successful, can be quickly brought into production utilising the Lineynoye facilities."
| Type: | NORMAL |
| Company: | PetroNeft Resources PLC |
| Country: | Russian Federation |