PTR.L Share News (PTR)

(Alliance News) - PetroNeft Resources PLC on Friday said it reached an agreement with its lenders to extend the term of its remaining loan balance of USD455,000.

The oil and gas exploration and production company, operating in the Tomsk Oblast in Siberia, Russia explained that, back in June 2019, it had agreed to a convertible loan facility of USD1.3 million with a group of five lenders, four of whom are directors and shareholders.

These include Chief Executive David Sturt and Director Daria Shaftelskaya, as well as substantial shareholders Natlata Partners LLP and ADM Consulting FZE.

The loan facility had a revised convertible loan maturity date of this past December 31, and the lenders had converted 65% of their advances into PetroNeft shares by that point.

The lenders now have agreed to extend the term for the remaining USD455,000 balance to the end of 2022, with the option to convert the remaining balance at 6 pence per share.

Petroneft shares were quoted at 4.30 pence each on Friday in London, so the conversion price represents a 40% premium.

The loan's interest rate will remain at eight percentage points above the London inter-bank offered rate.

"I believe the agreed loan extension is a welcome development, combined with the added opportunity for the investors to convert at GBP0.06p per ordinary equity share, which represents a significant 53% premium above the average closing for the last five trading days and is a further vote of confidence in the growth momentum PetroNeft can achieve in the coming year," CEO Sturt said.

By Abby Amoakuh; abbyamoakuh@alliancenews.com

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