Dublin-listed oil and gas exploration firm PetroNeft agrees $1.3m loan facility
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, whose owner is Maxim Korobov, a director of the oil and gas company.
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A further $240,000 of the loan is being provided by Daria Shaftelskaya, a "substantial" shareholder in 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, the group said in a statement. Under the terms of the agreement, lenders can at any time elect to convert up to 65pc of the outstanding loan to shares at a conversion price of 1.547 cents.
PetroNeft Resources chairman David Golder said: "We are pleased with this fundraising, which demonstrates the continued support from our larger shareholders.
"This facility provides some additional headroom 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 chief executive in November last year.
Since its establishment, it has evolved from an explorer to a production company employing more than 170 people in Russia.
Mr Sturt, a non-executive director of the company since 2016, became its chief executive earlier this year.
He 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).