Monday 14 October 2019

Shares in Dublin-listed PetroNeft rise on loan news

PetroNeft has targeted Russia
PetroNeft has targeted Russia
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 December 15, 2019, which may be extended.

Shares in PetroNeft were trading up over 3pc yesterday on Euronext Dublin, formally the Irish Stock Exchange.

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, in the Tomsk region of Siberia, are sold before December 31, 2020.

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.

In January, the group confirmed that David Sturt, a non-executive director of the company since 2016, will become CEO with effect from March 25.

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

Since 2012 he has been a senior vice president with UK group Azimuth, which designs and manufactures electronic and electro-mechanical downhole devices for the oil and gas industry.

He is also currently also a non-executive director of Petrosibir, a Swedish company with oil and gas interests in Russia.

Irish Independent

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