(Alliance News) - PetroNeft Resources PLC on Friday said it has delayed the drilling of up to five development wells in Russia as it has been unable to secure enough financing.
Shares in PetroNeft were down 20% to 0.60 pence in London on Friday afternoon.
The oil and gas company with operations in the Tomsk Oblast, Russia, said the delay concerned the Cheremshanskoye field.
It had been working with an unnamed Russian domestic bank regarding potential financing, but the bank was unable to provide a loan facility. This is due to the "on-going geopolitical situation", despite initial encouraging communications.
PetroNeft said it will continue to look for alternative financing avenues, but recognised this may be challenging under the current circumstances.
By Greg Rosenvinge; gregrosenvinge@alliancenews.com
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