PetroNeft acquires additional interest in West Siberia license

March 8, 2021
PetroNeft Resources PLC has completed the acquisition of an additional 40% interest in operated License 67 in the Tomsk Oblast of West Siberia from Belgrave Naftogas (formerly Arawak Russia BV). The company now holds a 90% interest in the license.

PetroNeft Resources PLC has completed the acquisition of an additional 40% interest in operated License 67 in the Tomsk Oblast of West Siberia from Belgrave Naftogas (formerly Arawak Russia BV). The company now holds a 90% interest in the license, up from 50%.

The license contains two oil fields, Ledovoye and Cheremshanskoye and several exploration prospects, the company said in a release Mar. 8. A 2016 Ryder Scott report calculated 2P reserves for Ledovoye field of 14 MMbbl and 3P reserves of 17.4 MMbbl. In 2019 and following the Cheremshanskoye No. 4 (C-4) well, the Russian State Reserves Committee approved C1+C2 reserves (about equivalent to international 2P reserves) for Cheremshanskoye field of 19.2 MMbb (OGJ Online, Aug. 29, 2018).

Consideration for the acquisition is $2.9, satisfied through the issuance of 80,000,000 PetroNeft ordinary shares to Belgrave Naftogas for a value of $1.2 million and cash consideration of $1.7 million, which will be financed through a 3-year loan from Belgrave Naftogas to PetroNeft.