Business Irish

Thursday 17 October 2019

Dublin-listed PetroNeft agrees $1.3m loan facility

PetroNeft has secured a $1.3m loan
PetroNeft has secured a $1.3m loan
Ellie Donnelly

Ellie Donnelly

Oil and gas explorer PetroNeft has entered into a convertible loan facility of $1.3m (€1.1m) with five lenders.

Its recently appointed CEO, David Sturt, is providing $50,000 of the loan, while $560,000 is coming from Natlata Partners, the largest shareholder of PetroNeft, and whose owner is Maxim Korobov, a director of oil and gas company.

Meanwhile $240,000 of the loan is being provide by Daria Shaftelskaya, a "substantial" shareholder of PetroNeft.

The loan, secured on the assets of Russia-focused PetroNeft, has a maturity date of 31 December 2020. It will be used for general corporate and operational purposes.

Under the terms of the agreement lenders can at any time to convert up to 65pc of the outstanding loan to shares.

David Golder, chairman of PetroNeft Resources, said: "We are pleased with this fundraising which demonstrates the continued support from our larger shareholders."

"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."

PetroNeft was founded in 2004 by Dennis Francis, who retired as the group's CEO in November last year.

Since its establishment it has evolved from an explorer to a production company employing over 170 people in Russia.

Earlier this year Mr Sturt, a non-executive director of the company since 2016, became chief executive.

Mr Sturt has more than 35 years of experience in the upstream oil and gas industry.

In March this year PetroNeft increased its loan facility with Swedish company Petrogrand to $2.5m (€2.2m) from $2m (€1.75m).

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