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Dublin-listed PetroNeft Resources has increased its interest in an exploration licence in Russia.
PetroNeft, which is focused on the Tomsk Oblast region in Russia, is the 50pc owner and operator of Licences 61 and 67 in the area.
The company has signed Heads of Terms with Belgrave Naftogas to acquire an additional 40pc interest in Licence 67 for $2.9m (€2.4m), bringing PetroNeft’s ownership to 90pc.
The company will pay for the additional 40pc of the licence through the issuance of 80,000,000 PetroNeft ordinary shares to Belgrave Naftogas – this represents 8.7pc of PetroNeft – for a value of $1.2m.
The cash consideration of $1.7m will be financed through a three-year loan from Belgrave Naftogas to PetroNeft.
Russia: PetroNeft announces potential acquisition of an additional 40 percent interest in Licence 67
15 Jan 2021
Licences 61 and 67 in the Tomsk Oblast, has signed Heads of Terms signed with
Belgrave Naftogas (formerly
40% interest in Licence 67 for US$2.9 million.
Background
Over the last 12 months, PetroNeft has significantly increased the focus on LIcence 67, as we look to develop the value of our portfolio. We have increasingly seen the significant potential that Licence 67 offers in terms of exploration and production. As a means of moving the Licence forward, in a cost-effective and timely way, a non-binding Heads of Terms has been executed between PetroNeft and Belgrave Naftogas to acquire an additional 40% interest in Licence 67, thereby increasing PetroNeft s interest from 50% to 90%.