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PetroNeft agrees to sell all its interests in subsidiary Lineynoye

Wed, 14th Jun 2023 10:23

(Alliance News) - PetroNeft Resources PLC on Wednesday said it had entered a non-binding conditional heads of terms to sell its entire interest in Lineynoye LLC to Chief Executive Officer Pavel Tetyakov.

This was for a consideration of RUB210 million, or GBP2.0 million, and the assumption of debt.

Shares in the oil and gas exploration company focussed on Russia fell by 15% to 0.10 pence in London on Wednesday.

PetroNeft said it will sell the entire the 90% interest it has in Lineynoye, the subsidiary through which the company holds its interest in licence 67, to CEO Tetyakov.

Lineynoye won the state auction for Ledovy licence 67 in the Tomsk region, West Siberia in December 2009 for RUB42 million. Licence 67 is located in the main oil bearing region of the Tomsk.

The remaining 10% equity of Lineynoye is owned by Belgrave Naftogas BV, previously Awawak Energy Russia, who have also agreed to sell.

PetroNeft said that a loan agreement is being executed between Lineynoye and CEO Tetyakov for RUB4.4 million, allowing Lineynoye to settle its outstanding shareholder loan agreement with PetroNeft for RUB4.4 million. The loan will be unsecured for a six-month period and at a zero interest rate.

The decision follows the strategic asset review announced on November 29, following increasing challenges facing the company due to the Ukraine war. CEO Tetyakov announced his interest in acquiring the company's Russian assets on February 10.

Tetyakov has also expressed an interest in purchasing 100% of Stimul-T LLC, which operates licence 61, but PetroNeft's partner Oil India International B.V. have rejected the offer.

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