Irish Junior Expands in Siberia
Irish firm Petroneft has agreed on the purchase of an extra 40% interest in one of the two licences it operates in Russia's Tomsk region from its local partner Belgrave Naftogaz, it said in a London stock exchange filing.
PetroNeft will pay $1.7mn in cash, funded by a three-year loan from Belgrave Naftogaz, and issue shares worth $1.2mn for the extra stake in Licence 67. The area contains the Cheremshanskoye oil and gas field, where Petroneft discovered a condensate-rich gas cap after re-entering a well last year.
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"This is an important step forward for Petroneft and is strong demonstration of our increasing confidence in and understanding of the quality of our assets," CEO David Sturt said. "Our low-cost operational activity on Licence 67 has already delivered first production. We are confident that the work we have done will provide a platform for significant future growth on this licence."
Petroneft's share in Licence 67 will rise to 90% after the deal's conclusion, expected before March 12. The company also operates Licence 61 in the Tomsk region. The agreement gives Belgrave the right to nominate a director at Petroneft and the Russian company has chosen its CEO Alastair McBain.