Business Irish

Monday 17 June 2019

Dublin-listed PetroNeft secures $2m loan

An engineer works on a Petroneft pipeline in Siberia
An engineer works on a Petroneft pipeline in Siberia
Ellie Donnelly

Ellie Donnelly

Dublin and London-listed oil and exploration company PetroNeft has agreed a loan facility for up to US$2m (€1.6m) with Swedish company Petrogrand.

The loan facility, which will mature at the end of this year, will be used for general corporate purposes and to finance a potential drilling programme in 2018.

Discussions with partners on a 2018 drilling programme are ongoing, PetroNeft said in a statement to the stock exchange today.

"This loan facility will provide time and space for a more long-term financing solution to be put in place," the Russian-focused company said.

Winter production from Sibkrayevskoye is getting underway now that winter roads have become available, PetroNeft said in its update.

"We will update shareholders in due course on production for Q4-2017 and on the results achieved from the winter production programme."

In the six months to 30 June 2017, PetroNeft made a loss of $1.6m. The loss included PetroNeft’s share of the losses on the joint ventures relating to Licences 61 and 67 of $2.2m and $0.2m respectively.

The company had finance revenue of $1.7m during the period, which related primarily to interest receivable on loans to the joint ventures.

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