Monday 22 April 2019

Dublin-listed oil and gas explorer PetroNeft increases loan with Petrogrand

A Petroneft pipeline in Siberia
A Petroneft pipeline in Siberia
Ellie Donnelly

Ellie Donnelly

Dublin-listed oil and gas explorer PetroNeft has increased its loan facility with Swedish company Petrogrand to $2.5m (€2.2m) from $2m (€1.75m).

The loan, secured on the assets of Russia-focused PetroNeft, also has a revised maturity date of 15 December 2019, which may be extended.

The initial loan facility of $2m had been fully drawn down and was used to finance the drilling of the successful C-4 well in 2018 and for general corporate purposes.

The revised terms include the potential entitlement to bonus payments of $2.5m per Licence if either or both Licence 61 or Licence 67, both of which are in the Tomsk region of Siberia, are sold before 31 December 2020.

PetroNeft was founded in 2004 by Dennis Francis, who retired as the group’s chief executive in November last year.

Since then the company has evolved from an explorer to a production company employing over 170 people in the Tomsk Region of Russia. 

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