(Alliance News) - PetroNeft Resources PLC said Tuesday it has entered into a USD1.3 million convertible loan facility with a group of five lenders, wihch includes the company's chief executive officer, David Sturt, and largest shareholder, Natlata Partners Ltd.
The oil & gas exploration company operating in the Tomsk Oblast region of Russia said the convertible loan matures on December 31, 2020, or on the sale of either Licence 61 or Licence 67. The loan facility will be used for general corporate and ongoing operational purposes and carries an interest rate of 8% above USD LIBOR.
"This facility provides some additional head room to the Company while we continue to progress the process to evaluate the possible sale or development of Licence 61 and/or Licence 67, said Chair David Golder.
Natlata Partners is ultimately owned by PetroNeft Director Maxim Korobov.
Shares in Petroneft were trading 9.6% lower at 0.90 pence each on Tuesday afternoon in London.