PetroNeft owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to announce an operations update.
The Board has recently approved a proposal received from Tomskburneftegas ("TBNG"), a drilling contractor owned by Non-Executive Director Vakha Sobraliev, to undertake agreed drilling operations under a deferred payment arrangement. Drilling operations have now re-commenced with the recent spudding of the Lineynoye No. 9 ("L-9") delineation well. Under these arrangements, TBNG will not receive any payment until after the Company completes its re-financing arrangements to the satisfaction of the Board. All other elements of the commercial agreement relating to this operation are consistent with prior turnkey drilling contracts between PetroNeft and TBNG. The overall value of the contract is of the order of $1.95 million and the operation is utilising existing equipment and supplies available at the L-9 location.