PetroNeft Resources PLC - Irish oil and gas exploration company operating in Russia - Completes acquisition of additional 40% interest in Licence 67, containing the two oil fields Ledovoye and Cheremshanskoye, from Belgrave Naftogas BV. Says PetroNeft already owns a 50% stake in Licence 67, which it acquired in a state auction in 2009, resulting in it now owning a 90% stake. Notes in January, it signed a heads of terms agreement with Belgrave Naftogas, part of the oil and gas focused Naftogaz Group in Ukraine. Says purchase consideration is USD2.9 million, satisfied through the issue of 80 million PetroNeft shares to Belgrave Naftogas for a value of USD1.2 million, and USD1.7 million in cash, which will be financed through a three-year loan from Belgrave Naftogas to PetroNeft.
"Licence 67 is an asset which we believe has significant potential value for PetroNeft shareholders. Over the last two years our understanding of this licence has improved considerably and we are delighted to be bringing it into production. With oil prices improving and a favourable tax treatment for this licence, we see this as an investment which can deliver significant value at low cost," says Chief Executive David Sturt.
Current stock price: 2.99 pence, up 8.7% on Monday
Year-to-date change: up sharply from 0.65p on December 31
By Zoe Wickens; zoewickens@alliancenews.com
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