(Alliance News) - PetroNeft Resources PLC on Monday announced it has signed a sales and purchase agreement with Belgrave Naftogas BV to acquire an additional 40% interest in Licence 67 in the Tomsk Oblast region of Russia for USD2.9 million.
The Irish oil and gas exploration company operating in Russia owns a 50% stake in Licence 67, which it acquired in a state auction in 2009. Back in January, it signed a heads of terms agreement with Belgrave Naftogas, formerly Arawak Energy Russia, which is part of the oil and gas focused Naftogaz Group in Ukraine.
PetroNeft has increased its focus on the licence, which contains the two oil fields Ledovoye and Cheremshanskoye, over the last 12 months due to the "significant potential" that it offers in terms of exploration and production, it said.
Shares in PetroNeft were up 13% at 1.30 pence in London on Monday.
PetroNeft said in January the transaction terms include the issue of 80 million PetroNeft shares to Belgrave Naftogas at a price of USD0.015 per share for USD1.2 million, representing an 8.7% shareholding. The terms remain the same as of Monday, it added.
Completion of the acquisition is expected no later than March 12, it said.
Back in January, the company said Belgrave Naftogas will have the right to nominate a director to its board. On Monday, Belgrave Naftogas announced it has nominated Alastair McBain as non-executive director with immediate effect.
In 2002, McBain became chief executive officer of Arawak Energy Ltd, where he worked alongside PetroNeft before the sale of Arawak's producing assets. At the beginning of 2020 Sarum Energy, a UK company in which McBain is a majority shareholder, purchased Belgrave Naftogas from Vitol. Vitol is a Geneva-based energy company which McBain began working for in 1995 until last year.
"I am very pleased to be joining the company at this important stage in the company's development. Being the former CEO of Arawak Energy, I have worked alongside PetroNeft for many years and believe that these assets can deliver value to shareholders," said McBain.
By Zoe Wickens; zoewickens@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.