PetroNeft agrees $35m work programme with Oil India as EGM date is set
PetroNeft, a Dublin-headquartered oil and gas exploration firm, has agreed a major work programme for its west Siberian project.
The work programme will cost at least $35m and Oil India has said it will provide all of the funding to the company by way of a shareholder loan.
Principal payments by the firm on the proposed loan would not be due to commence until 2019.
However in a release to shareholders this morning Oil India said the funding will only be made available if the current management team stays in place.
PetroNeft chief executive Dennis Francis said the agreement of the programme and budget was a major step forward for the development of License 61.
"Given the challenges currently being experienced in the market, the ability to secure this funding is a major positive for the company," he said.
Meanwhile the dispute between PetroNeft management and its largest shareholder Natlata continues after the firm announced it would hold an emergency general meeting on Monday, April 18.
Natlata, which is headed up by Russian businessman Maxim Korobov, has signalled that it could launch a takeover bid of PetroNeft.
In the release this morning the board has urged shareholders to vote against all resolutions, which include the appointment of three new directors, Anthony Sacca, David Sturt and Maxim Kirobov.
Natlata is also looking for the removal of four current diretcors in Dennis Francis, David Sanders, Paul Dowling and David Golder.
The PetroNeft board says Natlata is seeking to get control of the board without having to pay the shareholders a fair price for obtaining the company.
PetroNeft received an EGM requisition from Natlata in February.